NOVATEK Posts Q2 and First Half 2011 Results (Russia)
OAO NOVATEK today released its consolidated interim condensed financial information for the three and six months ended 30 June 2011 prepared in accordance with International Financial Reporting Standards (IFRS).
Total revenues in the second quarter and first half 2011, increased by 57.8% and 59.9%, respectively, as compared to the corresponding periods in 2010, primarily due to higher natural gas and liquid hydrocarbons’ sales volumes and prices.
Profit from operations increased by 80.4% and 69.2% in the second quarter and first half 2011, respectively, compared to the corresponding reporting period in 2010 due to the growth in revenues and our ability to control operating expenses. Profit attributable to shareholders of OAO NOVATEK more than doubled (102.0%) in the second quarter 2011 and increased by 81.6% in the first half of 2011, resulting in earnings per share of RR 4.75 and RR 10.97, respectively, due primarily to higher oil and gas sales and cost optimization.
In the second quarter and first half 2011, NOVATEK natural gas sales volumes increased by 49.6% and 43.3%, respectively, compared to the corresponding periods in 2010. The increases were primarily due to the growth in NOVATEK’s production capacity combined with the expansion of our customer portfolio and higher natural gas demand in the domestic market.
During the second quarter 2011, NOVATEK total liquids’ sales volumes increased by 25.1% and our total liquids’ sales volumes in the first half of 2011 increased by 34.9% compared to the corresponding periods in 2010 primarily due to organic growth in production capacity. At 30 June 2011, NOVATEK recorded 274 thousand tons of stable gas condensate in transit or storage and recognized as inventory as compared to 332 thousand tons as of 30 June 2010.
Source: NOVATEK, August 12, 2011;