OREANDA-NEWS. OAO NOVATEK today released its audited consolidated financial statements for the years ended 31 December 2013 and 2012 prepared in accordance with the International Financial Reporting Standards (“IFRS”).

Total revenues grew by 41.3% year-on-year to RR 298.2 billion for the twelve months ended 31 December 2013 from RR 211.0 billion in 2012. The growth was due to an increase in hydrocarbon sales volumes and higher natural gas and liquids prices. 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 petroleum product sales from the Ust-Luga Gas Condensate Fractionation and Transshipment Complex launched in June 2013.

In 2013, we recorded a year-on-year increase of 28.0% in our Normalized EBITDA, which totaled RR 121.8 billion (adjusted for the gains from the sale of a 20% stake in Yamal LNG joint venture and an asset swap, whereby NOVATEK's 51% stake in Sibneftegas was swapped for 40% stake in Artic Russia B.V.). The growth in our Normalized EBITDA was positively impacted by the expansion of the share of liquids in our total hydrocarbon volumes sales mix, as well as the enhanced margins from processing stable gas condensate at the Ust-Luga complex.

In 2013, Normalized Profit attributable to NOVATEK shareholders, adjusted for the net gains from the asset sale and swap deals, increased by 14.8% to RR 79.8 billion, or RR 26.35 per share, as compared to RR 69.5 billion, or RR 22.91 per share, in 2012. The dynamics of profit was negatively impacted by non-cash foreign exchange effect. Net of this effect our Normalized Profit increased by 28.4%.

In 2013, natural gas sales volumes increased to 64.2 billion cubic meters (bcm), or by 9.0%, as compared with 2012, mainly due to production growth at the Yurkharovskoye field and the fields of our joint ventures. The share of end-users in our total gas volumes sales mix increased from 69% in 2012 to 89% in 2013. As at 31 December 2013, the total amount of natural gas recorded as inventory aggregated approximately 3.3 bcm.

Liquid hydrocarbon sales volumes aggregated 5,438 thousand tons in 2013 representing an increase of 29.4% as compared with 2012. The increase is due to higher gas condensate production at our joint ventures and an increase in crude oil output at the East-Tarkosalinskoye field. As at the year-end, 409 thousand tons of stable gas condensate and oil products were in transit or storage and recognized as inventory, as compared with 461 thousand tons of stable gas condensate as at 31 December 2012.