OREANDA-NEWS. November 27, 2012. NOVATEK released its consolidated interim condensed financial information for the third quarter and nine months ending 30 September 2012 prepared in accordance with International Financial Reporting Standards (IFRS).

IFRS Financial and Operational Highlights

(in millions of Russian roubles)

3Q 2012

3Q 2011

 

9M 2012

9M 2011

 

Revenues

 

 

52,562

39,888

Oil and gas sales

151,698

125,265

169

145

Other revenues

551

288

52,731

40,033

Total revenues

152,249

125,553

(29,845)

(22,921)

Total operating expenses

(88,476)

(68,838)

339

18

Other operating income (loss)

344

(9)

23,225

17,130

Profit from operations

64,117

56,706

2,345

(5,890)

Finance income (expense)

2,372

(2,079)

25,269

10,405

Profit before income tax

64,676

52,106

19,996

8,143

Profit

50,892

41,074

20,003

8,322

Profit attributable to
JSC NOVATEK shareholders

50,911

41,427

6.59

2.74

Basic and diluted earnings
per share(in Russian
roubles)

16.78

13.66

In the third quarter and nine months 2012, total revenues increased by 31.7% and 21.3%, respectively, as compared to corresponding periods of 2011. The growth was due to an increase in hydrocarbon sales volumes and higher natural gas and liquids prices.

In the third quarter 2012, profit from operations increased to RR 23,225 million, or by 35.6% as compared to the corresponding period of 2011, and for the nine months ending 30 September 2012, profit from operations amounted to RR 64,117 million, representing an increase of 13.1% as compared with the corresponding nine months 2011.

Profit attributable to JSC NOVATEK shareholders grew by 140.4% in the third quarter 2012 and by 22.9% in the nine months 2012, equaling RR6.59 per share and RR 16.78 per share, respectively, which was partially attributable to non-cash foreign exchange gain in the third quarter and nine months 2012 as compared with non-cash losses in the same periods of 2011.

Selected Operating Highlights

3Q 2012

3Q 2011

Production and Purchase Volumes

9M 2012

9M 2011

11,609

11,950

Natural gas production,
million cubic meters
(mmcm)

37,112

34,585

1,339

1,329

Equity share in natural gas
production from joint
ventures, mmcm

4,016

4,013

840

-

Gas purchases, mmcm

2,540

-

13,788

13,279

Total natural gas
production, mmcm

43,668

38,598

972

993

Liquids production,
thousand tons (mt)

3,079

3,053

73

-

Liquids purchases from joint
ventures, mt

131

-

4

1

Liquids purchases, mt

9

4

1,049

994

Total liquids production and
purchases, mt

3,219

3,057

3Q 2012

3Q 2011

Sales Volumes

9M 2012

9M 2011

13,507

12,266

Natural gas,
mmcm

43,004

38,088

737

658

Stable gas condensate,
mt

2,155

2,137

202

208

Liquefied petroleum gas,
mt

664

654

123

66

Crude oil,
mt

308

168

In the nine months 2012, natural gas sales volumes increased by 12.9% as compared with the corresponding nine month period due to a combined growth in production and purchases. In the third quarter 2012, natural gas sales volumes increased by 10.1% as compared with the third quarter 2011, which was primarily due to an increase in gas purchases.

During the third quarter 2012, injection of natural gas into underground gas storage facilities (UGSF) decreased by 732 million cubic meters, as compared with the third quarter 2011, due to accelerated injection rates in the second quarter 2012. As at 30 September 2012, total amount of natural gas injected into UGSF was 1,309 million cubic meters, which is 10.0% higher than at the end of September 2011.

In the nine months 2012, liquids sales volumes increased by 5.8% due to production growth and start of gas condensate purchases from LLC SeverEnergia, our joint venture, in April 2012. In the third quarter 2012, liquids sales volumes increased by 14.1% due to increase in purchases and decrease in liquids inventory balance.

Selected Balance Sheet Items

(in millions of Russian roubles)

30 September 2012

31 December 2011

ASSETS

 

 

Non-current assets

350,521

325,116

Property, plant and equipment, net

190,032

166,784

Total current assets

48,702

58,316

Total assets

399,223

383,432

LIABILITIES AND EQUITY

 

 

Non-current liabilities

83,120

91,636

Long-term debt

65,721

75,180

Current liabilities

33,869

50,114

Total liabilities

116,989

141,750

Equity attributable to

JSC NOVATEK shareholders

281,087

241,013

Non-controlling interest

1,147

669

Total equity

282,234

241,682

Total liabilities and equity

399,223

383,432