PAO NOVATEK 26 October 2016
Moscow, 26 October 2016. PAO NOVATEK today released its consolidated interim condensed financial statements as of and for the three and nine months ended 30 September 2016 prepared in accordance with International Financial Reporting Standards ('IFRS').
IFRS Financial Highlights
(in millions of Russian roubles)
3Q 2016 | 3Q 2015 | 9M 2016 | 9M 2015 | |
125,767 | 116,212 | Oil and gas sales | 390,441 | 341,010 |
716 | 1,155 | Other revenues | 2,781 | 2,343 |
126,483 | 117,367 | Total revenues | 393,222 | 343,353 |
(93,458) | (85,096) | Operating expenses | (280,636) | (238,533) |
- | 989 | Net gain on disposal of interests in joint ventures | 73,072 | 989 |
707 | 158 | Other operating income (loss) | (53) | (199) |
33,732 | 33,418 | Profit from operations | 185,605 | 105,610 |
43,833 | 37,120 | Normalized EBITDA of subsidiaries* | 140,932 | 119,141 |
57,726 | 52,579 | Normalized EBITDA including share in EBITDA of joint ventures* | 179,369 | 156,922 |
1,101 | (6,174) | Finance income (expense) | 2,091 | (11,290) |
9,401 | (34,713) | Share of profit (loss) of joint ventures, net of income tax | 52,405 | (17,435) |
44,234 | (7,469) | Profit (loss) before income tax | 240,101 | 76,885 |
36,494 | (12,416) | Profit (loss) attributable to PAO NOVATEK shareholders | 198,345 | 60,579 |
36,494 | (13,405) | Normalized profit (loss) attributable to PAO NOVATEK shareholders* | 140,668 | 59,590 |
12.09 | (4.44) | Normalized basic and diluted earnings (loss) per share* (in Russian roubles) | 46.60 | 19.73 |
* Excluding the effect from disposal of interests in joint ventures.
Our total revenues in the third quarter and nine months 2016 increased by 7.8% and 14.5%, respectively, as compared to the corresponding periods of 2015. Our Normalized EBITDA, inclusive of joint ventures, totalled RR 57.7 billion in the third quarter 2016 and RR 179.4 billion in the nine months 2016, representing an increase of 9.8% and 14.3%, respectively, as compared to the corresponding periods of 2015. The growth in our revenues and EBITDA was largely driven by substantial increase in liquids sales volumes.
Profit attributable to NOVATEK shareholders totalled RR 36.5 billion (RR 12.09 per share) in the third quarter 2016 and RR 198.3 billion (RR 65.70 per share) in the nine months 2016. Profit in the respective periods in 2015 were significantly impacted by foreign exchange losses, which resulted in a net loss in the third quarter 2015.
Marketable Hydrocarbon Production and Purchased Volumes
3Q 2016 | 3Q 2015 | 9M 2016 | 9M 2015 | |
16,195 | 17,061 | Natural gas production, million cubic meters (mmcm) | 49,952 | 50,102 |
11,304 | 11,868 | including production by subsidiaries, mmcm | 35,082 | 36,607 |
1,812 | 1,851 | Natural gas purchases from joint ventures, mmcm | 6,401 | 5,089 |
2,174 | 1,699 | Other purchases of natural gas, mmcm | 6,124 | 4,844 |
15,290 | 15,418 | Total natural gas production by subsidiaries and purchases, mmcm | 47,607 | 46,540 |
3,060 | 2,346 |
Liquids production, | 9,387 | 6,535 |
1,784 | 969 | including production by subsidiaries, mt | 5,448 | 3,021 |
2,382 | 2,555 | Liquids purchases from joint ventures, mt | 7,363 | 6,442 |
42 | 37 | Other purchases of liquids, mt | 86 | 58 |
4,208 | 3,561 | Total liquids production by subsidiaries and purchases, mt | 12,897 | 9,521 |
Hydrocarbon Sales Volumes
3Q 2016 | 3Q 2015 | 9M 2016 | 9M 2015 | |
14,456 | 14,272 | Natural gas, mmcm | 46,293 | 44,747 |
13,445 | 13,435 | including sales to end-users | 42,584 | 42,014 |
4,183 | 3,474 | Liquids, mt | 12,964 | 9,219 |
including: | ||||
1,647 | 1,613 | Stable gas condensate products | 5,212 | 5,038 |
1,157 | 251 | Crude oil | 3,502 | 760 |
715 | 975 | Stable gas condensate | 2,222 | 1,796 |
660 | 632 | Liquefied petroleum gas | 2,019 | 1,617 |
4 | 3 | Other petroleum products | 9 | 8 |
Our natural gas sales volumes totalled 14.5 billion cubic meters (bcm) in the third quarter 2016 and 46.3 bcm in the nine months 2016, representing an increase of 1.3% and 3.5%, respectively, as compared to the corresponding periods of 2015, which was mainly due to the development of gas trading at the Saint-Petersburg commodity exchange and higher volumes sold to traders. As at the end of the third quarter 2016, the total amount of natural gas recorded as inventory totalled 2.5 bcm as compared to 2.7 bcm at the end of the third quarter 2015.
In the third quarter 2016, liquid hydrocarbon sales volumes amounted to 4,183 mt, representing a 20.4% increase in volumes sold as compared to the third quarter 2015. In the nine months 2016, liquid hydrocarbon sales volumes grew to 12,964 mt, representing a 40.6% increase as compared to the nine months 2015. This significant growth was largely due to the launch of the Yarudeyskoye oil field in December 2015 and the Termokarstovoye and Yaro-Yakhinskoye gas and gas condensate fields in the first half 2015. The dynamics of our liquids sales volumes was also positively impacted by a decrease in liquids inventories by 284 mt in the nine months 2016 compared to the increase by 92 mt in the nine months 2015. As at 30 September 2016, 626 mt of liquid hydrocarbons were in transit or storage and recognized as inventory.
Selected Balance Sheet Items
(in millions of Russian roubles)
30 September 2016 | 31 December 2015 | |
ASSETS | ||
Non-current assets | 804,302 | 751,552 |
Property, plant and equipment | 329,870 | 331,712 |
Investments in joint ventures | 220,388 | 154,725 |
Long-term loans and receivables | 223,991 | 230,799 |
Total current assets | 118,559 | 120,485 |
Assets held for sale | - | 7,987 |
Total assets | 922,861 | 880,024 |
LIABILITIES AND EQUITY | ||
Non-current liabilities | 218,036 | 282,178 |
Long-term debt | 183,499 | 252,050 |
Current liabilities | 109,862 | 169,675 |
Total liabilities | 327,898 | 451,853 |
Equity attributable to PAO NOVATEK shareholders | 587,365 | 426,079 |
Non-controlling interest | 7,598 | 2,092 |
Total equity | 594,963 | 428,171 |
Total liabilities and equity | 922,861 | 880,024 |
The full set of unaudited consolidated interim condensed IFRS financial statements, the notes thereto and Management's Discussion and Analysis of Financial Condition and Results of Operations are available on the Company's web site (www.novatek.ru).
PAO NOVATEK is Russia's largest independent gas producer and the second-largest natural gas producer in Russia. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The Company's upstream activities are concentrated in the prolific Yamal-Nenets Autonomous Region, which is the world's largest natural gas producing area and accounts for approximately 80% of Russia's natural gas production and approximately 16% of the world's gas production. NOVATEK is a public joint stock company established under the laws of the Russian Federation. The Company's shares are listed in Russia on Moscow Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol «NVTK».
OAO Novatek published this content on 26 October 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 26 October 2016 10:06:10 UTC.
Original documenthttp://www.novatek.ru/en/press/releases/index.php?id_4=1353
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