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2020-04-30 14:50:00

NOVATEK LOSS RR30.7 BLN

НОВАТЭК: УБЫТОК 30.7 МЛРД. РУБ

NOVATEK - 29 April 2020 - PAO NOVATEK today released its consolidated interim condensed financial statements as of and for the three months ended 31 March 2020 prepared in accordance with International Financial Reporting Standards (“IFRS”).  

IFRS Financial Highlights
(in millions of Russian roubles except as stated)
 
1Q 2020 
1Q 2019 
Oil and gas sales
182,595 
231,184 
Other revenues
1,967 
2,922 
Total revenues
184,562 
234,106 
Operating expenses
(146,535)
(175,140)
Net gain on disposal of interests in subsidiaries
308,578 
Other operating income (loss)
(33,236)
(914)
Normalized profit from operations*
38,901 
58,052 
Normalized EBITDA of subsidiaries*
45,383 
65,724 
Normalized EBITDA including share in
EBITDA of joint ventures*
100,668 
117,942 
Finance income (expense)
141,453 
(6,021)
Share of profit (loss) of joint ventures, net of income tax
(145,231)
70,973 
Profit before income tax
1,013 
431,582 
Profit (loss) attributable to
shareholders of PAO NOVATEK
(30,680)
381,796 
Normalized profit attributable to
shareholders of PAO NOVATEK
*,
excluding the effect of foreign exchange gains (losses)
53,547 
65,730 
Normalized basic and diluted earnings per share*,
excluding the effect of foreign exchange gains (losses)
(in Russian roubles)
17.80 
21.82 
Cash used for capital expenditures
41,143 
42,476 
* Excluding the effects from disposal of interests in subsidiaries and joint ventures (recognition of a net gain on disposal and subsequent non-cash revaluation of contingent consideration).

 
COVID-19 and Macro-Economic Environment

Global markets have experienced financial and economic disruptions caused by the spread of COVID-19, and the mandated shutdowns by many governments. This negative economic impact has lowered demand for crude oil, natural gas and oil products, which combined with the increase in the supply of crude oil due to the cancellation of the OPEC+ production agreement in the first quarter 2020, resulted in a decline in global hydrocarbon commodity prices. As of 31 March 2020, the Russian rouble significantly depreciated relative to the US dollar and the Euro that resulted in the recognition of substantial foreign exchange effects on foreign currency denominated loans by the Group’s subsidiaries and joint ventures. Many of these events are out of the control of the Group’s management.

Despite the economic instability on the global markets, the Group continues to achieve strong operating results and implement its main investment projects in accordance with the Group’s approved corporate strategy. The Group’s management continues to assess the current situation and present macro-economic environment and take appropriate actions if deemed necessary.

 Revenues and EBITDA

Our total revenues and Normalized EBITDA, including our share in EBITDA of joint ventures, decreased to RR 184.6 billion and RR 100.7 billion, or by 21.2% and 14.6%, respectively, as compared to the corresponding period in 2019.

The decreases in total revenues and Normalized EBITDA were largely due to a decline in world prices for hydrocarbons. Our revenues also decreased due to a decrease in LNG sales volumes on international markets resulted from an increase in the share of our joint venture OAO Yamal LNG direct sales under long-term contracts and a respective decrease in our spot LNG volumes purchased from Yamal LNG.

Profit (loss) attributable to shareholders of PAO NOVATEK

In the first quarter 2020, we recorded a loss attributable to shareholders of PAO NOVATEK in the amount of RR 30.7 billion (RR 10.20 per share) as compared to a profit of RR 381.8 billion in the corresponding period in 2019.

The Group’s financial results in the current reporting period were significantly impacted by the unfavorable macroeconomic conditions noted above, which resulted in a decrease in our hydrocarbons sales prices and a recognition of substantial foreign exchange effects. Moreover, in both reporting periods, we recorded effects from the disposal of interests in the Arctic LNG 2 project by recognizing RR 308.6 billion of gain from the disposal of a 10% participation interest in the Arctic LNG 2 project in the first quarter 2019, and recognizing RR 34.1 billion of loss in the first quarter 2020 related to the subsequent non-cash revaluation of contingent consideration on the sale of a 40% participation interest in 2019.

Excluding the effects from the disposal of interests in subsidiaries and joint ventures, as well as foreign exchange differences, Normalized profit attributable to shareholders of PAO NOVATEK amounted to RR 53.5 billion (RR 17.80 per share), representing a decrease of 18.5% as compared to the first quarter 2019.

 

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Earlier:

НОВАТЭК: УБЫТОК 30.7 МЛРД. РУБ
2020, April, 10, 12:05:00
NOVATEK'S PRODUCTION UP BY 2.1%
In the first quarter 2020, NOVATEK’s hydrocarbon production totaled 150.2 million barrels of oil equivalent
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Tags: НОВАТЭК, NOVATEK