Novatek Announced First Quarter 2008 IFRS Results
OREANDA-NEWS. On 21 May 2008 Novatek released its consolidated interim condensed financial information for the three months ending 31 March 2008 prepared in accordance with International Financial Reporting Standards (“IFRS”).
IFRS Financial and Operational Highlights
In the three months ended 31 March 2008, total revenues and other income grew by 36.8% to RR 20,892 million from RR 15,275 million in the corresponding period of 2007, reflecting the general strength and stability of our core business operations. The increase in total revenues from our primary business operations was attributable to the favorable pricing environment for both domestic and international hydrocarbon sales.
Profit attributable to NOVATEK shareholders increased by 72.6% to RR 7,503 million, or RR 2.47 per share, in the three months ended 31 March 2008 as compared to RR 4,347 million, or RR 1.43 per share, in the corresponding period in 2007.
Sales volumes of natural gas decreased by 728 million cubic meters, or by 8.0%, from 9,119 million cubic meters in the three months ended 31 March 2007 to 8,391 million cubic meters in the corresponding period in 2008. The main cause for the sales volumes reduction was the decrease of volumes withdrawn from underground storage owned and operated by OAO Gazprom. In the three months ended 31 March 2008, our withdrawal from the underground storage facilities totaled 39 million cubic meters as compared to 893 million cubic meters in the corresponding period in 2007. Due to the unseasonably warm winter in 2007 we had a reduction in the amount of natural gas injected into the underground storage facilities in the summer season.
Net liquid sales volumes increased by 18.2% from 594 thousand tons in 1Q 2007 to 702 thousand tons in 1Q 2008.
At 31 March 2008, we had 172 thousand tons of stable gas condensate in transit or storage and recognized as inventory until such time as it is delivered to the port of destination as compared to 224 thousand tons as of 31 December 2007. At 31 March 2007, our inventory balance of stable gas condensate was 192 thousand tons compared to 190 thousand tons as of 1 January 2007.
The full set of consolidated interim condensed IFRS financial information, the notes thereto and Management’s Discussion and Analysis of Financial Condition and Results of Operations are available on the Company’s web site (www.novatek.ru).
Certain statements in this press release are not historical facts and are “forward looking” within the meaning of Section 27A of the Securities Act and Section 21E of the US Securities Exchange Act of 1934 (hereinafter, the Exchange Act). Forward looking statements include statements concerning our plans, expectations, projections, objectives, targets, goals, strategies, future events, future revenues or performance, capital expenditures, financing needs, plans or intentions relating to acquisitions, our competitive strengths and weaknesses, plans or goals relating to forecasted production, reserves, financial position and future operations and development, our business strategy and the trends we anticipate in the industries and the political and legal environment in which we operate and other information that is not historical information. By their very nature, forward looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that the predictions, forecasts, projections and other forward looking statements will not be achieved.