OREANDA-NEWS. NOVATEK today released its consolidated interim condensed financial information as of and for the three months ended 31 March 2014 prepared in accordance with International Financial Reporting Standards (“IFRS”).

In the first quarter 2014, our total revenues increased by 10.1% to RR 88.7 billion compared to RR 80.6 billion in the corresponding period of 2013. The growth was mainly due to an increase in average prices for natural gas and liquid hydrocarbons partially driven by the start of sales of higher value added products following the launch of the Ust-Luga Gas Condensate Fractionation and Transshipment Complex.

The Company's Normalized EBITDA inclusive of subsidiaries (adjusted for the gain on disposal of a 20% share in Artic Russia B.V.) amounted to RR 39.0 billion, representing a 18.6% increase compared to the first quarter 2013. The Normalized EBITDA including our respective share in the EBITDA of joint ventures increased by 23.3% as compared to the first quarter 2013 to RR 43.0 billion.

The growth in our Normalized EBITDA including our respective share in the EBITDA of joint ventures was positively impacted by higher liquids sales margins due to the launch of the Ust-Luga Complex, significant increase in natural gas and gas condensate production at the North-Urengoyskoye field of the Nortgas joint venture and oil production growth at the East-Tarkosalinskoye field, as well as an increase in the Company's share in the SeverEnergia joint venture. The Company's divestment of its share in the Sibneftegas joint venture in December 2013 produced a negative impact on our EBITDA.

In the first quarter 2014, Normalized Profit attributable to NOVATEK shareholders (adjusted for the effect on disposal of the share in Artic Russia B.V.), increased by 0.8% to RR 23.0 billion, or RR 7.60 per share. Our profit dynamics was negatively impacted by a non-cash foreign exchange loss (including a loss recorded at the joint ventures level) due to the significant depreciation of the Russian ruble against the US dollar in the first quarter 2014. Net of this non-cash foreign exchange loss our Normalized Profit increased by 23.7%.

In the first quarter 2014, our natural gas sales volumes decreased to 17.8 billion cubic meters (bcm), or by 5.2%, as compared with the corresponding period in 2013, mainly due to the termination of natural gas purchases from the Sibneftegas joint venture. As at 31 March 2014, the total amount of natural gas recorded as inventory aggregated 837 mmcm as compared to 3,296 mmcm at the end of 2013.

Liquid hydrocarbon sales volumes aggregated 1,545 thousand tons in the first quarter 2014 representing a decrease of 4.3% as compared with the first quarter 2013 due to a decrease in our liquid inventory balances in the first quarter 2013, which was largely offset by an increase in production and purchases of liquid hydrocarbons in the first quarter 2014 by 19.4% as compared to the first quarter 2013. As at 31 March 2014, 434 thousand tons of stable gas condensate and oil products were in transit or storage and recognized as inventory.