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NOVATEK Announces Consolidated IFRS Results for First Quarter 2017
Mark Gyetvay, Deputy Chairman of the Management Board
Alexander Nazarov, Head of IR
+7 (495) 730-6013
Yury Melihov, Press-secretary
+7 (495) 721-2207
26 April 2017
Moscow, 26 April 2017. PAO NOVATEK today released its consolidated interim condensed financial statements as of and for the three months ended 31 March 2017 prepared in accordance with International Financial Reporting Standards (“IFRS”).
IFRS Financial Highlights
(in millions of Russian roubles)
* Before disposals of interests in joint ventures.
** Excluding the effect from the disposal of interests in joint ventures, as well as the effect of foreign exchange gains (losses).
In the first quarter 2017, our total revenues increased to RR 154.6 billion, or by 11.0% compared to the first quarter 2016. We also recorded an increase of 9.7% in the Company’s Normalized EBITDA, including our respective share in the EBITDA of joint ventures, which totaled RR 68.2 billion. The growth in our revenues and EBITDA was largely driven by the increase in natural gas sales volumes as well as the increase in liquids sales prices.
Profit attributable to NOVATEK shareholders decreased by 38.7% to RR 71.0 billion (RR 23.54 per share), as compared to RR 115.9 billion (RR 38.40 per share) in the first quarter 2016. The amount of profit was significantly impacted by the foreign exchange effect (including at the joint ventures level), and its dynamics – by the effect of the disposals of interests in joint ventures. Net of these effects, our adjusted profit attributable to NOVATEK shareholders increased by 20.2% to RR 44.3 billion compared with the first quarter 2016.
Production and Purchased Volumes
Hydrocarbon Sales Volumes
Our natural gas sales volumes totalled 18.8 bcm, representing a 5.5% increase compared with the corresponding period in 2016. Higher natural gas sales volumes were due to the increased demand for natural gas from end-customers resulted, among other factors, from weather conditions. As at the end of the first quarter 2017, the total amount of natural gas recorded as inventory totalled 130 mmcm compared to 429 mmcm as at the end of the first quarter 2016.
Liquid hydrocarbon sales volumes aggregated 4.1 million tons in the first quarter 2017 representing a decrease of 11.4% as compared to the first quarter 2016. The decrease was a result of a decrease in gas condensate production mainly at mature fields of the Company’s subsidiaries and joint ventures. The dynamics of our liquids sales volumes was also negatively impacted by the decrease in liquids inventories by 90 mt in the first quarter 2017 compared to the decrease by 298 mt in the first quarter 2016. As at 31 March 2017, 813 mt of liquid hydrocarbons were in transit or storage and recognized as inventory.
Selected Items of Consolidated Statement of Financial Position
(in millions of Russian roubles)
The full set of 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 one of the largest independent natural gas producers 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».
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