OREANDA-NEWS. NOVATEK today released its consolidated interim condensed financial information as of and for the three and six months ended 30 June 2014 prepared in accordance with International Financial Reporting Standards (“IFRS”).

In the second quarter and first half 2014, our total revenues increased by 52.3% and 27.7%, respectively, compared to the corresponding periods of 2013. The growth was mainly due to an increase in average prices for natural gas and liquid hydrocarbons, as well as higher liquid hydrocarbons sales volumes. Average liquid hydrocarbon sales price was positively impacted by the launch of the Ust-Luga Gas Condensate Fractionation Complex in June 2013. Growth in the average natural gas sales price was driven among other factors by higher share of end customers in our overall natural gas sales volumes mix.

The Company's Normalized EBITDA, inclusive of subsidiaries, amounted to RR 36.9 billion in the second quarter 2014, representing a 70.7% increase as compared to the second quarter 2013. The Normalized EBITDA, including our respective share in the EBITDA of joint ventures, increased by 72.1% as compared to the second quarter 2013 to RR 40.3 billion. In the first half 2014, our Normalized EBITDA, inclusive of subsidiaries, amounted to RR 75.9 billion, and our EBITDA, including our respective share in the EBITDA of joint ventures, was RR 83.3 billion, which represents an increase of 39.3% and 42.9%, respectively, as compared to the first half 2013. The growth in our Normalized EBITDA was positively impacted by a higher share of liquid hydrocarbons in our overall sales volumes mix as well as higher liquids sales margins due to the launch of the Ust-Luga Complex.

In the second quarter 2014, Normalized Profit attributable to NOVATEK shareholders increased by 175.4% to RR 32.0 billion or RR 10.58 per share. In the first half 2014, Normalized Profit attributable to NOVATEK shareholders (adjusted for the effect on disposal of the share in Artic Russia B.V.) amounted to RR 55.0 billion (RR 18.19 per share), representing an increase of 59.8% as compared to the first half 2013. Our profit dynamics over the respective reporting periods were positively impacted by non-cash foreign exchange effects (including at the joint ventures level).

In the second quarter 2014, our natural gas sales volumes increased to 15.5 billion cubic meters (bcm), or by 6.2%, as compared with the corresponding period in 2013, mainly due to the increase in production volumes of our subsidiaries and less gas injected into the underground storages. Natural gas sales volumes in the first half 2014 remained practically unchanged as compared to the first half 2013 and amounted to 33.3 bcm. The positive impact of higher production volumes and change in gas inventory in the underground storages was fully offset by the termination of natural gas purchases from Sibneftegas due to the divestment of our share in this joint venture in December 2013. The share of end-customers in our overall gas sales volumes mix increased from 89% in the first half 2013 to 94% in the same period of 2014. As at 30 June 2014, the total amount of natural gas recorded as inventory aggregated 1.6 bcm as compared to 1.4 bcm as at 30 June 2013.

Liquid hydrocarbon sales volumes in the second quarter and first half 2014 increased by 59.2% and 20.9%, respectively, as compared to the same periods of 2013 due to a significant increase in our liquid inventory balances in the second quarter 2013 prior to the launch of the Ust-Luga Complex. Sales volumes were positively impacted by higher volumes of gas condensate purchased from our joint ventures due to production growth at Nortgas and the SeverEnergia fields. As at 30 June 2014, 357 thousand tons of stable gas condensate and oil products were in transit or storage and recognized as inventory compared to 447 thousand tons as at 30 June 2013.