Gazprom Reports Financial Results under IFRS for 1Q, 2012
OREANDA-NEWS. September 06, 2012. Today OAO Gazprom issued its unaudited consolidated interim condensed financial information prepared in accordance with International Accounting Standard 34 “Interim Financial Reporting” (IAS 34) for the three months ended March 31, 2012.
The table below presents the unaudited consolidated interim condensed statement of comprehensive income prepared in accordance with IFRS for the three months ended March 31, 2012 and 2011. All amounts are presented in millions of Russian Rubles.
Three months ended March 31, 2012 2011
Sales 1,224,878 1,316,747
Net gain (loss) from trading activity 1,490 (330)
Operating expenses (927,401) (817,909)
Operating profit 298,967 498,508
Finance income 139,201 73,968
Finance expense (30,041) (20,278)
Share of net income of associated
undertakings and jointly controlled entities 48,370 38,519
(Losses) gains on disposal of
available-for-sale financial assets (200) 349
Profit before profit tax 456,297 591,066
Current profit tax expense (101,378) (108,864)
Deferred profit tax benefit (expense) 12,696 (3,702)
Profit tax expense (88,682) (112,566)
Profit for the period 367,615 478,500
Other comprehensive income
Gains arising from change in fair
value of available-for-sale financial assets, net of tax 3,551 7,173
Share of other comprehensive loss of associated undertakings and jointly controlled entities (2,758) (5,579)
Translation differences (47,419) (19,624)
Gains from cash flow hedges, net of tax 6,218 –
Other comprehensive loss for the period, net of tax (40,408) (18,030)
Total comprehensive income for the period 327,207 460,470
Sales (net of VAT, excise tax and customs duties) decreased by RUB 91,869 million, or 7%, to RUB 1,224,878 million in the three months ended March 31, 2012 compared to the three months ended March 31, 2011. More detailed information on our sales for the three months ended March 31, 2012 and 2011 is presented in the table below.in millions of RUB (unless otherwise stated) Three months ended March 31,
2012 2011
Sales of gas
Europe and other countries
Net sales (net of customs duties) 386,600 398,533
Volumes in bcm 42.7 46.6
Average price, RUB/mcm (including customs duties) 11,525.7 10,041.5
FSU (Former Soviet Union)
Net sales (net of VAT and customs duties) 144,325 205,394
Volumes in bcm 20.0 29.2
Average price, RUB/mcm (including customs duties, net of VAT) 8,633.4 7,552.3
Russian Federation
Net sales (net of VAT) 269,070 266,042
Volumes in bcm 99.6 102.5
Average price, RUB/mcm (net of VAT) 2,701.3 2,596.1
Total sales of gas
Effects of retroactive gas price adjustments (78,505) –
Net sales (net of VAT and customs duties) 721,490 869,969
Volumes in bcm 162.3 178.3
Net sales of refined products (net of VAT, excise tax and customs duties) 255,971 214,887
Net electric and heat energy sales (net of VAT) 111,601 112,536
Net sales of crude oil and gas condensate (net of VAT and customs duties) 65,193 57,345
Net gas transportation sales (net of VAT) 32,059 28,796
Other revenues (net of VAT) 38,564 33,214
Total sales (net of VAT, excise tax and customs duties) 1,224,878 1,316,747
Net sales of gas decreased by RUB 148,479 million, or 17%, to RUB 721,490 million in the three months ended March 31, 2012 compared to the three months ended March 31, 2011.
For the three months ended March 31, 2012 net sales of gas to Europe and other countries decreased by RUB 11,933 million, or 3%, to RUB 386,600 million compared to the three months ended March 31, 2011. This change was primarily due to decrease in volumes of gas sold by 8% or 3.9 bcm, which was partially compensated by the increase of average realized prices in RUB terms (including customs duties) by 15%.
Net sales of gas to FSU countries decreased by RUB 61,069 million, or 30%, to RUB 144,325 million in the three months ended March 31, 2012 compared to the three months ended March 31, 2011. The decrease of sales in this segment is explained by the decrease of volumes of gas sold by 32%, or 9.2 bcm, which was partially compensated by the increase of the average realized prices in RUB terms (including customs duties, net of VAT) by 14%.
Net sales of gas in the domestic market increased by RUB 3,028 million, or 1%, to RUB 269,070 million in the three months ended March 31, 2012 compared to the three months ended March 31, 2011. This is explained primarily by the increase in the average domestic price for gas. Volume of gas sold decreased by 3% in the three months ended March 31, 2012 compared to the three months ended March 31, 2011.
Net sales of refined products increased by RUB 41,084 million, or 19%, to RUB 255,971 million in the three months ended March 31, 2012 compared to the three months ended March 31, 2011. The increase was due to the increase of prices for refined products and increase of volumes sold.
Net electric and heat energy sales decreased by RUB 935 million, or 1%, to RUB 111,601 million in the three months ended March 31, 2012 compared to the three months ended March 31, 2011. The decrease in electric and heat energy sales is explained by the reduction of electricity prices at the day-ahead market and decrease in generation of electric energy.
In the three months ended March 31, 2012 net sales of crude oil and gas condensate increased by RUB 7,848 million, or 14%, to RUB 65,193 million compared to the three months ended March 31, 2011. The increase in net sales of crude oil primarily resulted from the Gazprom neft activities: net sales of crude oil increased by RUB 2,825 million, or 6%, to RUB 51,187 million in the three months ended March 31, 2012 compared to the three months ended March 31, 2011 mainly due to the increase in oil prices. In the three months ended March 31, 2012 net sales of gas condensate increased by RUB 5,023 million, or 56%, to RUB 14,006 million compared to the three months ended March 31, 2011. The increase of gas condensate sales was primarily due to the increase in the average realized prices and volumes of gas condensate sold.
In the three months ended March 31, 2012 net gas transportation sales increased by RUB 3,263 million, or 11%, to RUB 32,059 million compared to the three months ended March 31, 2011. The increase in net gas transportation sales was primarily due to the increase in the tariffs for transportation of gas for independent gas suppliers.
Operating expenses increased by RUB 109,492 million, or 13%, to RUB 927,401 million in the three months ended March 31, 2012 compared to the three months ended March 31, 2011.
Major item in the total amount of operating expenses is "Purchased gas and oil" which decreased by RUB 61,926 million or 24%. The decrease in cost of purchased gas mainly relates to the decrease in volumes and prices of gas purchased from third parties outside the Russian Federation. The increase in operating expenses was mostly influenced by the following items: " Taxes other than on income " (increase by RUB 55,692 million), " Transit of gas, oil and refined products " (increase by RUB 18,705 million), "Depreciation" (increase by RUB 13,047 million), " Cost of goods for resale, including refined products " (increase by RUB 10,560 million), "Staff costs" (increase by RUB 8,893 million).
In the three months ended March 31, 2012 profit for the period attributable to owners of OAO Gazprom totaled RUB 357,841 million which is RUB 110,128 million, or 24%, lower compared to the three months ended March 31, 2011.
Net debt balance (defined as the sum of short-term borrowings, current portion of long-term borrowings, short-term promissory notes payable, long-term borrowings and long-term promissory notes payable, net of cash and cash equivalents and balances of cash and cash equivalents restricted as to withdrawal under the terms of certain borrowings and other contractual obligations) decreased by RUB 316,399 million, or 31%, from RUB 1,034,941 million as of December 31, 2011 to RUB 718,542 million as of March 31, 2012. This decrease resulted mainly from the repayment of long-term and short-term loans and borrowings, appreciation of RUB against USD and Euro and increase in cash and cash equivalents.
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