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2015 October 28   16:50

NOVATEK announces consolidated IFRS results for third quarter and nine months 2015

OAO NOVATEK has released its consolidated interim condensed financial statements as of and for the three and nine months ended 30 September 2015 prepared in accordance with International Financial Reporting Standards (“IFRS”).

In the third quarter and first nine months 2015, total revenues increased by 38.5% and 31.2%, respectively, compared to the corresponding periods of 2014, which was mainly due to an increase in liquids sales volumes and prices for natural gas sales.

The Company’s Normalized EBITDA, inclusive of share in EBITDA of joint ventures, amounted to RR 52.6 billion in the third quarter 2015 and RR 157.9 billion in the first nine months 2015, representing an increase of 35.7% and 29.4%, respectively, as compared to the corresponding periods of 2014. The

In the first nine months 2015, Normalized Profit attributable to NOVATEK shareholders, totaled RR 59.6 billion (including a loss of RR 13.4 billion in the third quarter 2015) and decreased by 4.9% as compared to RR 62.6 billion in the first nine months 2014.

In the first nine months 2015, the Company’s natural gas sales volumes totaled 44.7 billion cubic meters (“bcm”) (including 14.3 bcm in the third quarter 2015), which is 7.2% lower as compared to the same period of 2014 mainly due to warmer weather during the winter peak season. As at 30 September 2015, the total amount of natural gas recorded as inventory was 2.7 bcm.

In the nine months 2015, liquid hydrocarbon sales volumes totaled 9.22 million tons (including 3.47 million tons sold in the third quarter 2015), representing an 87.0% increase as compared to the corresponding period of 2014. Higher volumes of gas condensate purchased from our joint ventures due to production growth at the SeverEnergia joint venture fields and the successful launch of the Termokarstovoye field at the Terneftegas joint venture as well as the increase of crude oil production by subsidiaries positively impacted our liquids sales during the period. As at 30 September 2015, 0.83 million tons of liquid hydrocarbons were in transit or storage and recognized as inventory.

OAO NOVATEK is Russia’s largest independent gas producer and the second-largest natural gas producer in Russia. Founded in 1994, the Company is engaged in the exploration, production, processing and marketing of natural gas and liquid hydrocarbons. The Company’s upstream activities are concentrated in the prolific Yamal-Nenets Autonomous Region, which is the world’s largest natural gas producing area and accounts for approximately 80% of Russia’s gas production and approximately 16% of the world’s gas production. NOVATEK is an open joint stock company established under the laws of the Russian Federation. The Company’s shares are listed in Russia on Moscow Exchange (MOEX) and the London Stock Exchange (LSE) under the ticker symbol «NVTK».

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