OREANDA-NEWS. Moscow, 6 November 2013. OAO NOVATEK (“NOVATEK” and/or the “Company”) today released its consolidated interim condensed financial information for the three and nine months ended 30 September 2013 prepared in accordance with International Financial Reporting Standards (“IFRS”).

IFRS Financial and Operational Highlights

(in millions of Russian roubles unless otherwise stated)

3Q 2013

3Q 2012

9M2013

9M2012

Revenues

75,541

52,345

Oil and gas sales

213,907

150,984

107

169

Other revenues

336

551

75,648

52,514

Total revenues

214,243

151,535

(47,080)

(29,628)

Total operating expenses

(137,749)

(87,762)

36

339

Other operating income (loss)

693

344

28,604

23,225

Profit from operations

77,187

64,117

32,893

25,252

EBITDA

87,054

69,883

(27)

2,345

Total finance income (expense)

(5,406)

2,372

29,224

25,269

Profit before income tax

72,119

64,676

23,432

19,996

Profit (loss)

57,828

50,892

23,458

20,003

Profit (loss) attributable to shareholders of OAO NOVATEK

57,886

50,911

7.75

6.59

Basic and diluted earnings per share (in Russian roubles)

19.10

16.78

Total revenues in the third quarter and nine months 2013 increased by 44.1% and 41.4%, respectively, as compared to the corresponding periods of 2012, largely due to an increase in sales volumes and average sales prices of natural gas and liquid hydrocarbons. The increase in natural gas prices was due to a significant expansion of the share of end-users in our total gas volumes sales mix, changes in the geography of sales in favor of the remote regions, as well as due to an increase in regulated gas prices, whereas the increase in the average price of liquids was mainly due to the start of product sales from the Ust-Luga Gas Condensate Fractionation and Transshipment Complex launched in the second quarter 2013.

In the third quarter 2013, we recorded a year-on-year increase of 30.3% in EBITDA, which totaled RR 32.9 billion. EBITDA for the first nine months 2013 increased by 24.6% over the corresponding nine months in 2012, and totaled RR 87.1 billion. The growth in our EBITDA was positively impacted by the expansion of the share of liquids in our total hydrocarbon volumes sales mix, as well as by the margin from stable gas condensate processing at the Ust-Luga complex.

Profit attributable to shareholders of OAO NOVATEK in the third quarter 2013 increased to RR 23.5 billion (RR 7.75 per share), or by 17.3% as compared to the third quarter 2012. Profit attributable to shareholders of OAO NOVATEK in the first nine months 2013 increased to RR 57.9 billion (RR 19.10 per share), or by 13.7% as compared to the same period of 2012. The dynamics of profit was impacted by non-cash foreign exchange effect.

Production and Purchase Volumes

3Q 2013

3Q 2012

9M 2013

9M 2012

12,199

11,609

Natural gas production, million cubic meters (mmcm)

38,648

37,112

1,744

1,339

Natural gas purchases from joint ventures, mmcm

5,567

4,016

1,441

840

Other purchases of natural gas, mmcm

4,920

2,540

15,384

13,788

Total natural gas production and purchases, mmcm

49,135

43,668

1,045

972

Liquids production, thousand tons (mt)

3,244

3,079

272

73

Liquids purchases from joint ventures, mt

776

131

3

4

Other purchases of liquids, mt

7

9

1,320

1,049

Total liquids production and purchases, mt

4,027

3,219

Sales Volumes

3Q 2013

3Q 2012

9M 2013

9M 2012

14,403

13,507

Natural gas, mmcm

47,770

43,004

12,928

8,719

including sales to end-users, mmcm

42,568

29,252

690

-

Ust-Luga products, mt

690

-

241

737

Stable gas condensate, mt

2,083

2,155

257

202

Liquefied petroleum gas, mt

783

664

162

123

Crude oil, mt

463

308

In the third quarter and first nine months 2013, our natural gas sales volumes increased by 6.6% and 11.1%, respectively, as compared to the corresponding periods in 2012, due to growth in production at the Yurkharovskoye field and an increase in purchases of natural gas. At 30 September 2013, we recorded 2,362 million cubic meters of natural gas as inventory in underground storages as compared to 1,309 million cubic meters in the corresponding period of 2012.

In the third quarter and first nine months 2013, our total liquid hydrocarbon sales volumes increased by 27.0% and 28.5%, respectively, as compared to the corresponding periods in 2012. The growth was due to higher volumes of gas condensate purchases from joint ventures and an increase in crude oil and gas condensate production by our subsidiaries. At 30 September 2013, 378 thousand tons of stable gas condensate and oil products were in transit or storage and recognized as inventory, as compared with 268 thousand tons of stable gas condensate as at 30 September 2012.

Selected Items from the Statement of Financial Position

(in millions of Russian roubles)

30 September 2013 ASeptember2013

31 December 2012

ASSETS

Non-current assets

447,713

404,890

Property, plant and equipment

235,441

197,376

Investments in joint ventures

171,813

189,136

Current assets

53,536

58,243

Assets held for sale

24,306

-

Total assets

525,555

463,133

LIABILITIES AND EQUITY

Non-current liabilities

162,126

116,702

Long-term debt

139,778

97,805

Current liabilities

27,163

55,130

Total liabilites

189,289

171,832

Equity attributable to OAO NOVATEK shareholders

335,073

290,050

Non-controlling interest

1,193

1,251

Total equity

336,266

291,301

Total liabilities and equity

525,555

463,133