OREANDA-NEWS. March 15, 2011. NOVATEK released its audited consolidated financial statements for the years ended 31 December 2010 and 2009 prepared in accordance with International Financial Reporting Standards (“IFRS”). 

IFRS Financial and Operational Highlights (in millions of Russian roubles)

 

FY 2010

FY 2009

Revenues

  

 

Oil and gas sales

115,162

86,903

Sales of polymer and insulation tape

1,699

1,873

Other revenues

163

1,178

Total revenues

117,024

89,954

Total operating expenses

(68,518)

(56,130)

Net gain on disposal of interest in subsidiaries

1,329

52

Other operating income (loss)

396

(343)

Profit from operations

50,231

33,533

Finance income (expense)

1,197

(831)

Profit before income tax

51,082

32,500

Profit (loss)

40,278

25,722

Profit (loss) attributable to JSC  NOVATEK shareholders

40,533

26,043

Basic and diluted earnings per share

(in Russian roubles)

13.37

8.59

Total revenues grew by 30.1% year-on-year to RR 117,024 million for the twelve months ended 31 December 2010 from RR 89,954 million in the corresponding period of 2009, reflecting the overall growth in our hydrocarbon production and sales volumes as well as higher prices for both natural gas and liquid hydrocarbons. 

As a result of the higher revenues and our ability to decrease costs as a percentage of total revenues, profit attributable to NOVATEK shareholders increased by 55.6% to RR 40,533million, or RR 13.37 per share as compared to RR 26,043million, or RR 8.59 per share for the corresponding period in 2009. 

Selected Operating Highlights

Production and Purchased Volumes

FY 2010

FY 2009

 

Natural gas production (million cubic meters)

37,208

32,353

 

Natural gas purchases (million cubic meters)

-

1,000

 

Total natural gas production and purchases

37,208

33,353

 

Liquids production (thousand tons)

3,617

3,038

 

Liquids purchases (thousand tons)

12

13

 

Total liquids production and purchases

3,629

3,051

 

Sales Volumes

FY 2010

FY 2009

Natural gas (million cubic meters)

37,117

32,937

Stable gas condensate (thousand tons)

2,330

2,170

Liquefied petroleum gas (thousand tons)

876

749

Crude oil (thousand tons)

185

198

Oil products (thousand tons)

10

11

In 2010, our total consolidated natural gas production increased by 4,855 mmcm, or 15.0%, compared to 2009 due to an increase in production at our Yurkharovskoye field resulting from the launches of the second and third stages of the field’s second phase development in October 2009 and 2010, respectively.

Our liquids production increased by 579 thousand tons, or 19.1%, to 3,617 thousand tons compared to 3,038 thousand tons in 2009, due to the expansion of unstable gas condensate production capacity at our Yurkharovskoye field as a result of the field’s ongoing development program. The increase in 2010 unstable gas condensate production allowed us to increase stable gas condensate and LPG sales volumes by 7.4% and 17.0%, respectively, compared to 2009.

At 31 December 2010, we had 264 thousand tons of stable gas condensate in transit or storage and recognized as inventory until such time as it is delivered to customers as compared to 111 thousand tons as of 31 December 2009. In 2010, our natural gas inventory balance as of 31 December 2010 increased to 790 million cubic meters compared to 744 million cubic meters at the end of the 2009 period.  

Selected Balance Sheet Items

(in millions of Russian roubles) 

  

 

31 December
2010

31 December
 2009

ASSETS

  

    

Non-current assets

255,608

166,264

Property, plant and equipment

185,573

161,448

Total current assets

29,565

26,867

Assets held for sale

-

508

Total assets

285,173

193,639


LIABILITIES AND EQUITY

  

  

Non-current liabilities

59,946

36,602

Long-term debt

47,074

23,876

Current liabilities

57,441

23,593

Liabilities associated with assets held for sale

-

4

Total liabilities

117,387

60,199

Equity attributable to

JSC  NOVATEK shareholders 

147,119

114,301

Non-controlling interest

20,667

19,139

Total equity

167,786

133,440

Total liabilities and equity

285,173

193,639