Gazprom Reports Financial Results under IFRS for 1H 2012
OREANDA-NEWS. November 02, 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 six months ended June 30, 2012.
The table below presents the unaudited consolidated interim condensed statement of comprehensive income prepared in accordance with IFRS for the six months ended June 30, 2012 and 2011. All amounts are presented in millions of Russian Rubles. Six months ended June 30,
2012 2011
Sales 2,230,366 2,347,071
Net gain (loss) from trading activity 5,518 (236)
Operating expenses (1,623,751) (1,498,340)
Operating profit 612,133 848,495
Finance income 153,393 106,765
Finance expense (182,063) (44,675)
Share of net income of associated undertakings and jointly controlled entities 71,689 62,566
(Losses) gains on disposal of available-for-sale financial assets (78) 831
Profit before profit tax 655,074 973,982
Current profit tax expense (139,132) (170,346)
Deferred profit tax benefit (expense) 9,584 (18,434)
Profit tax expense (129,548) (188,780)
Profit for the period 525,526 785,202
Other comprehensive income
Losses arising from change in fair value of available-for-sale financial assets, net of tax (22,019) (2,389)
Share of other comprehensive loss of associated undertakings and jointly controlled entities (5,039) (6,352)
Translation differences 8,037 (25,034)
Losses from cash flow hedges, net of tax (6,040) –
Other comprehensive loss for the period, net of tax (25,061) (33,775)
Total comprehensive income for the period 500,465 751,427
Profit attributable to:
owners of OAO Gazprom 508,667 771,669
non-controlling interest 16,859 13,533
525,526 785,202
Total comprehensive income attributable to:
owners of OAO Gazprom 482,933 739,777
non-controlling interest 17,532 11,650
500,465 751,427
Sales (net of VAT, excise tax and customs duties) decreased by RUB 116,705 million, or 5%, to RUB 2,230,366 million in the six months ended June 30, 2012 compared to the six months ended June 30, 2011. More detailed information on our sales for the six months ended June 30, 2012 and 2011 is presented in the table below.in millions of RUB (unless otherwise stated) Six months ended June 30,
2012 2011
Sales of gas
Europe and other countries
Net sales (net of customs duties) 731,316 742,212
Volumes in bcm 77.9 86.6
Average price, RUB/mcm (including customs duties) 11,657.9 10,356.0
FSU (Former Soviet Union)
Net sales (net of VAT and customs duties) 256,695 331,434
Volumes in bcm 33.3 46.8
Average price, RUB/mcm (including customs duties, net of VAT) 9,137.9 7,630.5
Russian Federation
Net sales (net of VAT) 389,301 398,630
Volumes in bcm 144.3 154.2
Average price, RUB/mcm (net of VAT) 2,698.5 2,585.6
Total sales of gas
Effects of retroactive gas price adjustments (133,186) –
Net sales (net of VAT and customs duties) 1,244,126 1,472,276
Volumes in bcm 255.5 287.6
Net sales of refined products (net of VAT, excise tax and customs duties) 543,710 451,938
Net electric and heat energy sales (net of VAT) 177,136 180,215
Net sales of crude oil and gas condensate (net of VAT and customs duties) 129,334 117,293
Net gas transportation sales (net of VAT) 60,279 55,500
Other revenues (net of VAT) 75,781 69,849
Total sales (net of VAT, excise tax and customs duties) 2,230,366 2,347,071
Net sales of gas decreased by RUB 228,150 million, or 15%, to RUB 1,244,126 million in the six months ended June 30, 2012 compared to the six months ended June 30, 2011.
For the six months ended June 30, 2012 net sales of gas to Europe and other countries decreased by RUB 10,896 million, or 1%, to RUB 731,316 million compared to the six months ended June 30, 2011. This change was primarily due to decrease in volumes of gas sold by 10% or 8.7 bcm, which was partially compensated by the increase of average realized prices in RUB terms (including customs duties) by 13%.
Net sales of gas to FSU countries decreased by RUB 74,739 million, or 23%, to RUB 256,695 million in the six months ended June 30, 2012 compared to the six months ended June 30, 2011. The decrease of sales in this segment is explained by the decrease of volumes of gas sold by 29%, or 13.5 bcm, which was partially compensated by the increase of the average realized prices in RUB terms (including customs duties, net of VAT) by 20%.
Net sales of gas in the domestic market decreased by RUB 9,329 million, or 2%, to RUB 389,301 million in the six months ended June 30, 2012 compared to the six months ended June 30, 2011. This is explained primarily by the decrease of volumes of gas sold by 6%, or 9.9 bcm, in the six months ended June 30, 2012 compared to the six months ended June 30, 2011 which was partially compensated by the increase in the average domestic price for gas by 4%.
Net sales of refined products increased by RUB 91,772 million, or 20%, to RUB 543,710 million in the six months ended June 30, 2012 compared to the six months ended June 30, 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 3,079 million, or 2%, to RUB 177,136 million in the six months ended June 30, 2012 compared to the six months ended June 30, 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 sales volumes of electric and heat energy.
In the six months ended June 30, 2012 net sales of crude oil and gas condensate increased by RUB 12,041 million, or 10%, to RUB 129,334 million compared to the six months ended June 30, 2011. The increase in net sales of crude oil primarily resulted from the Gazprom neft activities: net sales of crude oil increased by RUB 8,316 million, or 9%, to RUB 104,548 million in the six months ended June 30, 2012 compared to the six months ended June 30, 2011 mainly due to the increase in oil prices. In the six months ended June 30, 2012 net sales of gas condensate increased by RUB 3,725 million, or 18%, to RUB 24,786 million compared to the six months ended June 30, 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 six months ended June 30, 2012 net gas transportation sales increased by RUB 4,779 million, or 9%, to RUB 60,279 million compared to the six months ended June 30, 2011. The increase in net gas transportation sales was primarily due to the increase in volumes of gas transportation services rendered to independent gas suppliers.
Operating expenses increased by RUB 125,411 million, or 8%, to RUB 1,623,751 million in the six months ended June 30, 2012 compared to the six months ended June 30, 2011.
Major item in the total amount of operating expenses is "Purchased gas and oil" which decreased by RUB 40,545 million, or 9%. 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 90,688 million), "Transit of gas, oil and refined products" (increase by RUB 26,506 million), "Depreciation" (increase by RUB 24,939 million), "Staff costs" (increase by RUB 14,970 million), "Cost of goods for resale, including refined products" (increase by RUB 9,671 million).
In the six months ended June 30, 2012 profit for the period attributable to owners of OAO Gazprom totaled RUB 508,667 million which is RUB 263,002 million, or 34%, lower compared to the six months ended June 30, 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 24,634 million, or 2%, from RUB 1,034,941 million as of December 31, 2011 to RUB 1,010,307 million as of June 30, 2012. This decrease resulted mainly from the repayment of long-term and short-term borrowings and increase in cash and cash equivalents.
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