Moscow, 18 November 2005. OAO NOVATEK today announced strong earnings in its third quarter and nine months 2005 consolidated interim condensed financial results prepared in accordance with International Financial Reporting Standards (“IFRS”) and reviewed by PricewaterhouseCoopers.
Net profit attributable to NOVATEK for the nine months ending 30 September 2005 totaled RR 10,798 million, or RR 3,556 per share (basic and diluted), compared to RR 4,061 million, or RR 1,807 per share (basic and diluted) for the same period in 2004. For the third quarter 2005, net profit attributable to NOVATEK increased by 65% to RR 2,875 million, or RR 947 per share (basic and diluted) from RR 1,743 million, or RR 776 per share (basic and diluted).
Net profit attributable to NOVATEK was higher in both periods mainly due to the increase in production volumes from core fields, the impact on financial results due to the December 2004 asset consolidations, and the net gains on disposal of investments in oil and gas producing associates in the second quarter 2005.
Total revenues and other income grew by 77% to RR 32,240 million for the nine-month period ending 30 September 2005 from RR 18,240 million in the corresponding 2004 period. For the three-month period ending 30 September 2005, total revenues and other income increased by 89% to RR 10,242 million from RR 5,408 million for the corresponding period in 2004.
Natural gas sales increased by 84% to RR 16,873 million in the nine-month period ended 30 September 2005 from RR 9,173 million in the corresponding 2004 period, while revenues from liquids (crude oil, stable gas condensate, LPG and oil products) increased from RR 5,990 million in 2004 to RR 10,765 million, or 80%, during the period.
For the third quarter 2005, revenues from natural gas increased by 112% to RR 5,481 million from RR 2,583 million in the corresponding 2004 period, while revenues from liquids increased by 96% to RR 4,388 million from RR 2,233 million in 2004.
Natural gas sales volumes for the nine-month period ended 30 September 2005 rose by 64% from 12,582 million cubic meters in 2004 to 20,597 million cubic meters in 2005. Net liquid sales volumes grew by 21%, from 1,541 thousand tons in 2004 to 1,866 thousand tons in 2005.
In the third quarter 2005, natural gas sales volumes increased by 106% to 6,826 million cubic meters from 3,316 million cubic meters for the corresponding period in 2004, whereas liquids sales volumes increased by 9% to 592 thousand tons from 541 thousand tons in the 2004 period.
Third Quarter and Nine Months 2005
IFRS Financial and Operational Highlights
|
3Q 2005 |
3Q 2004 |
|
|
9M 2005 |
9M 2004 |
|
|
RR, mln |
RR, mln |
|
Revenues |
RR, mln |
RR, mln |
|
|
9,869 |
4,816 |
105% |
Oil and gas sales |
27,638 |
15,163 |
82% |
|
- |
- |
- |
Oil and gas construction services |
- |
2,053 |
|
|
278 |
158 |
76% |
Sales of polymer and insulation tape |
714 |
432 |
65% |
|
113 |
53 |
- |
Other |
282 |
433 |
- |
|
10,260 |
5,027 |
104.% |
Total revenues |
28,634 |
18,081 |
58% |
|
(18) |
381 |
|
Total non-operating revenues |
3,606 |
159 |
|
|
10,242 |
5,408 |
89% |
Total revenues and other income |
32,240 |
18,240 |
77% |
|
(6,214) |
(3,319) |
87% |
Total operating expenses |
(17,424) |
(13,344) |
31% |
|
3,950 |
2,246 |
76% |
Profit before income tax and minority interests |
14,451 |
5,542 |
161% |
|
2,855 |
1,749 |
|
Profit for period |
10,763 |
4,122 |
|
|
2,875 |
1,743 |
65% |
Profit attributable to shareholders |
10,798 |
4,061 |
166% |
|
947 |
776 |
22% |
Basic and diluted earnings per share( in RR) |
3,556 |
1,807 |
97% |
|
3,036,306 |
2,247,030 |
|
Weighted average number of shares outstanding |
3,036,306 |
2,247,030 |
|
Selected Operating Data
|
3Q 2005 |
3Q 2004 |
|
|
9M 2005 |
9M 2004 |
|
|
|
|
|
Sales Volumes |
|
|
|
|
6,826 |
3,316 |
106% |
Natural gas (millions cubic meters) |
20,597 |
12,582 |
64% |
|
82 |
400 |
-80% |
Crude oil (thousand tons) |
787 |
1,184 |
-34% |
|
309 |
- |
100% |
Stable gas condensate (thousand tons) |
396 |
- |
100% |
|
96 |
- |
100% |
Liquefied petroleum gas (thousand tons) |
123 |
- |
100% |
|
105 |
141 |
-26% |
Oil products (thousand tons) |
560 |
357 |
57% |
Selected Balance Sheet Items (in millions of Russian roubles)
|
ASSETS |
|
|
|
|
|
|
|
|
30 September 2005 |
31 December 2004 |
|
Non-current assets |
|
|
|
Property, plant and equipment, net |
64,083 |
62,449 |
|
Investments in associates |
- |
1,945 |
|
Total non-current assets |
65,755 |
73,316 |
|
Total current assets |
13,682 |
9,134 |
|
Total assets |
79,437 |
82,450 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Non-current liabilities |
|
|
|
Long-term debt |
1,428 |
13,232 |
|
Total non-current liabilities |
11,260 |
23,275 |
|
Total current liabilities |
12,562 |
14,239 |
|
Total liabilities |
23,822 |
37,514 |
|
Equity attributable to Group shareholders |
|
|
|
Total equity attributable to Group shareholders |
55,334 |
44,487 |
|
Minority interest |
281 |
449 |
|
Total equity |
55,615 |
44,936 |
|
Total liabilities and equity |
79,437 |
82,450 |
|
