OREANDA-NEWS. On April 23, 2007 OAO NOVATEK released its audited consolidated financial statements for the year ended 31 December 2006 prepared in accordance with International Financial Reporting Standards (“IFRS”), reported the press-centre of NOVATEK. Total revenues grew by 26,9% year-on-year to RR 48,814 million for the twelve months ended 31 December 2006 from RR 38,477 million in the corresponding period of 2005, reflecting the general strength of our core business operations. The increase in total revenues from our primary business operations was attributable to increases in production volumes from our core fields and the favorable pricing environment for both domestic and international hydrocarbon sales.


Profit attributable to NOVATEK shareholders increased by 2,8% to RR 14,079 million, or RR 4,64 per share (basic and diluted) as compared to RR 13,697 million, or RR 4,51 per share (basic and diluted) for the corresponding period in 2005.   Excluding the one-time effect of net gains on disposals, earnings per share (basic and diluted) increased by 39,5% to RR 4,63 per share from RR 3,32 per share in 2005. Sales volumes of natural gas for the full year increased by 2,978 million cubic meters, or by 10,9%, from 27,330 million cubic meters in 2005 to 30,308 million cubic meters in 2006.  

Net liquid sales volumes decreased by 8,6% from 2,460 thousand tons in 2005 to 2,249 thousand tons in 2006.   The decrease in our liquid sales volumes is largely due to a change in commercial terms resulting in the recording of inventory balances and the disposal of Geoilbent in June 2005. As at 31 December 2006, 179 thousand tons of stable gas condensate was recorded as “goods in transit” due to the change in commercial export terms. These volumes are recognized as inventory until such time as they are delivered to the final port of destination. NOVATEK also recorded 1billion cubic meters of natural gas as inventory and held in underground storage facilities maintained by OAO Gazprom. Natural gas volumes injected into underground storage facilities are expected to fluctuate period-to-period depending on market conditions, storage capacity, and field development plans.


The full set of audited consolidated IFRS financial statements and the related notes thereto as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations are available on the Company’s web site (www.novatek.ru).