2018-07-27 12:10:00
NOVATEK'S PROFIT RUB 32 BLN
NOVATEK - PAO NOVATEK released its consolidated interim condensed financial statements as of and for the three and six months ended 30 June 2018 prepared in accordance with International Financial Reporting Standards ("IFRS").
IFRS Financial Highlights
(in millions of Russian roubles except as stated)
(in millions of Russian roubles except as stated)
|
2Q
2018
|
2Q
2017
|
|
1H
2018
|
1H
2017
|
|
194,818
|
128,030
|
Oil and gas sales
|
373,303
|
282,031
|
|
1,004
|
800
|
Other revenues
|
1,922
|
1,427
|
|
195,822
|
128,830
|
Total revenues
|
375,225
|
283,458
|
|
(135,606)
|
(94,033)
|
Operating expenses
|
(266,643)
|
(203,397)
|
|
-
|
-
|
Net gain on disposal of
interests in joint ventures
|
1,645
|
-
|
|
(621)
|
351
|
Other operating income (loss)
|
(519)
|
625
|
|
59,595
|
35,148
|
Profit from operations*
|
108,063
|
80,686
|
|
68,958
|
43,798
|
Normalized EBITDA of subsidiaries*
|
125,379
|
97,613
|
|
101,339
|
56,072
|
Normalized EBITDA including share in
EBITDA of joint ventures*
|
177,645
|
124,252
|
|
7,380
|
13,414
|
Finance income (expense)
|
12,782
|
4,812
|
|
(18,215)
|
(33,768)
|
Share of profit (loss) of joint ventures,
net of income tax |
(17,052)
|
9,858
|
|
48,760
|
14,794
|
Profit before income tax
|
105,438
|
95,356
|
|
32,041
|
3,243
|
Profit attributable to
shareholders of PAO NOVATEK
|
75,162
|
74,261
|
|
54,289
|
33,772
|
Normalized profit attributable to
shareholders of PAO NOVATEK ** |
101,199
|
78,117
|
|
18.01
|
11.20
|
Normalized basic and diluted earnings per share** (in Russian roubles)
|
33.57
|
25.89
|
* Excluding the effect from disposal of interests in joint ventures.
** Excluding the effects from the disposal of interests in joint ventures, as well as foreign exchange gains (losses).
In the second quarter of 2018, our total revenues amounted to RR 195.8 billion and EBITDA, including our share in EBITDA of joint ventures, totaled RR 101.3 billion, representing increases of 52.0% and 80.7%, respectively, as compared to the corresponding period in 2017. Our total revenues and Normalized EBITDA, including our share in EBITDA of joint ventures, during the six months ended 30 June 2018 amounted to RR 375.2 billion and RR 177.6 billion, representing increases of 32.4% and 43.0%, respectively, as compared to the corresponding period in 2017. The increases in our total revenues and Normalized EBITDA were largely due to the production launch of the first LNG train at Yamal LNG at the end of 2017, as well as an increase in average realized liquids and natural gas prices.
In the second quarter and the first half of 2018, profit attributable to shareholders of PAO NOVATEK increased to RR 32.0 billion (RR 10.63 per share), or by approximately ten-fold, and to RR 75.2 billion (RR 24.93 per share), or by 1.2%, respectively, as compared to the corresponding periods in 2017. Our profit in the reporting periods was significantly impacted by the recognition of substantial non-cash foreign exchange effects on foreign currency denominated loans of the Group and its joint ventures. Excluding the effect of foreign exchange differences, as well as the one-time effect from the disposal of interests in joint ventures, Normalized profit attributable to shareholders of PAO NOVATEK totaled RR 54.3 billion (RR 18.01 per share) in the second quarter of 2018 and RR 101.2 billion (RR 33.57 per share) in the first half of 2018, representing increases of 60.8% and 29.5%, respectively, as compared to the corresponding periods in 2017.
Hydrocarbon Production and Purchased Volumes
|
2Q
2018
|
2Q
2017
|
|
1H
2018
|
1H
2017
|
|
131.8
|
127.5
|
Total hydrocarbon production,
million barrels of oil equivalent (million boe)
|
264.3
|
258.0
|
|
1.45
|
1.40
|
Total production (million boe per day)
|
1.46
|
1.43
|
|
16,418
|
15,762
|
Natural gas production including proportionate share in the production of joint ventures, million cubic meters (mmcm)
|
32,926
|
31,912
|
|
10,562
|
10,952
|
Natural gas production by subsidiaries
|
20,925
|
22,211
|
|
4,420
|
2,356
|
Natural gas purchases from joint ventures
|
12,007
|
7,657
|
|
1,708
|
1,936
|
Other purchases of natural gas
|
3,437
|
3,796
|
|
16,690
|
15,244
|
Total natural gas production by subsidiaries and purchases (mmcm)
|
36,369
|
33,664
|
|
2,928
|
2,918
|
Liquids production including proportionate share in the production of joint ventures,
thousand tons (mt) |
5,864
|
5,885
|
|
1,650
|
1,687
|
Liquids production by subsidiaries
|
3,278
|
3,400
|
|
2,322
|
2,296
|
Liquids purchases from joint ventures
|
4,622
|
4,639
|
|
56
|
41
|
Other purchases of liquids
|
100
|
78
|
|
4,028
|
4,024
|
Total liquids production by subsidiaries
and purchases (mt)
|
8,000
|
8,117
|
Hydrocarbon Sales Volumes
|
2Q
2018
|
2Q
2017
|
|
1H
2018
|
1H
2017
|
|
15,149
|
14,380
|
Natural gas (mmcm)
|
35,412
|
33,132
|
|
|
|
including:
|
|
|
|
14,496
|
14,380
|
Sales in the Russian Federation
|
33,801
|
33,132
|
|
653
|
-
|
Sales on international markets
|
1,611
|
-
|
|
4,273
|
4,072
|
Liquids (mt)
|
8,050
|
8,185
|
|
|
|
including:
|
|
|
|
2,028
|
1,763
|
Stable gas condensate refined products
|
3,594
|
3,600
|
|
1,148
|
1,211
|
Crude oil
|
2,271
|
2,283
|
|
658
|
645
|
Liquefied petroleum gas
|
1,307
|
1,322
|
|
436
|
450
|
Stable gas condensate
|
872
|
974
|
|
3
|
3
|
Other petroleum products
|
6
|
6
|
Our operational results for the second quarter and the first half of 2018 were significantly impacted by the production launch of the first LNG train at Yamal LNG at the end of 2017, as well as the acquisitions of new producing fields at the end of 2017 and in the first quarter of 2018 (the Beregovoye, the West-Yaroyakhinskoye and the Syskonsyninskoye fields). As a result, our total natural gas production for the second quarter and the first half of 2018 increased by 4.2% and 3.2%, respectively, and our total liquids production changed insignificantly (increased by 0.3% and decreased 0.4%, respectively).
In the second quarter and the first half of 2018, our natural gas sales volumes totaled 15.1 billion and 35.4 billion cubic meters (bcm), representing increases of 5.3% and 6.9%, respectively, as compared to the corresponding periods in 2017, due to the commencement of sales of LNG purchased from our joint venture Yamal LNG to international markets from December 2017 and an increase in volumes sold in the Russian Federation. As at the end of the second quarter of 2018, our cumulative natural gas inventory balances mainly in the Underground Gas Storage Facilities, the Gas Transmission System and own pipeline infrastructure totaled 1.3 bcm as compared to 0.6 bcm at the end of the second quarter of 2017.
In the second quarter of 2018, our liquid hydrocarbons sales volumes amounted to 4.3 million tons, representing a 4.9% increase compared to the second quarter of 2017 mainly from the sale of stable gas condensate refined products in transit at the end of the first quarter of 2018. In the first half of 2018, our liquid hydrocarbon sales volumes totaled 8.1 million tons, representing a marginal decrease by 1.6% compared to the corresponding prior year period. As at 30 June 2018, we recorded 806 mt of liquid hydrocarbons in transit or storage and recognized as inventory as compared to 699 mt at 30 June 2017. Our liquid hydrocarbon inventory balances tend to fluctuate period-on-period and are usually realized in the following reporting period.
Selected Items of Consolidated Statement of Financial Position
(in millions of Russian roubles)
|
|
30 June
2018
|
31 December
2017
|
|
ASSETS
|
|
|
|
Non-current assets
|
954,363
|
890,726
|
|
Property, plant and equipment
|
415,612
|
360,051
|
|
Investments in joint ventures
|
267,081
|
285,326
|
|
Long-term loans and receivables
|
235,237
|
211,901
|
|
Current assets
|
157,416
|
153,436
|
|
Total assets
|
1,111,779
|
1,044,162
|
|
LIABILITIES AND EQUITY
|
|
|
|
Non-current liabilities
|
207,345
|
184,545
|
|
Long-term debt
|
155,318
|
141,448
|
|
Current liabilities
|
76,330
|
83,958
|
|
Total liabilities
|
283,675
|
268,503
|
|
Equity attributable to
PAO NOVATEK shareholders |
808,299
|
757,839
|
|
Non-controlling interest
|
19,805
|
17,820
|
|
Total equity
|
828,104
|
775,659
|
|
Total liabilities and equity
|
1,111,779
|
1,044,162
|
-----
Earlier:
2018, July, 23, 13:30:00
RUSSIA'S LNG FOR CHINANOVATEK - PAO NOVATEK (“NOVATEK” and/or the “Company”) has shipped its first cargos of liquefied natural gas (LNG) from the Yamal LNG project to China via the Northern Sea Route. |
2018, July, 12, 10:10:00
NOVATEK'S PRODUCTION: +2.4%NOVATEK - In the first half 2018, NOVATEK’s hydrocarbons production totaled 264.3 million barrels of oil equivalent (boe), including 32.93 billion cubic meters (bcm) of natural gas and 5,864 thousand tons of liquids (gas condensate and crude oil), resulting in an increase in total hydrocarbons production by 6.3 million boe, or by 2.4%, as compared to the first half 2017. |
2018, June, 25, 12:05:00
NOVATEK - KOGAS UNDERSTANDINGNOVATEK - According to the MOU, the parties agreed to explore opportunities for KOGAS to enter the Arctic LNG 2 project and possible LNG off-take from the project, participate in the LNG transshipment project in Kamchatka and other infrastructure projects, as well as develop cooperation in LNG trading and logistics optimization, including swap operations. |
2018, May, 25, 10:30:00
NOVATEK - TOTAL AGREEMENT: $25.5 BLNNOVATEK - At the 22nd Saint Petersburg International Economic Forum, in the presence of the President of Russia Vladimir Putin and the President of France Emmanuel Macron, Chairman of the Management Board of PAO NOVATEK (“NOVATEK”) Leonid Mikhelson and Chairman and Chief Executive Officer of TOTAL S.A. (“TOTAL”) Patrick Pouyanné signed a binding agreement on the terms to enter the Arctic LNG 2 project. |
2018, February, 27, 13:10:00
NOVATEK'S PROFIT DOWN BY 39.3%NOVATEK - Profit attributable to shareholders of PAO NOVATEK decreased to RR 156.4 billion (RR 51.85 per share), or by 39.3%, as compared to 2016. |
2018, February, 12, 07:05:00
LEBANON OFFSHORE DRILLINGNOVATEK - Total and Eni signed exploration and production agreements (Agreements) with the Government of Lebanon to explore and produce hydrocarbons on the offshore blocks 4 and 9 in the Eastern part of the Mediterranean Sea. NOVATEK’s participating interest in the Agreements is 20%, Total and Eni both hold 40% stakes, with Total appointed as the Operator. |
2018, January, 22, 07:55:00
RUSSIAN LNG TO U.S.BLOOMBERG - Engie bought the cargo from Petroliam Nasional Bhd and that the Malaysian company in turn bought it from Yamal LNG operator Novatek PJSC. It was the first cargo from the Siberian plant. |
