Pao Novatek has released its consolidated interim condensed financial statements as of and for the three months ended 31 March 2019, prepared in accordance with International Financial Reporting Standards (IFRS).
Revenues and EBITDA
In 1Q19, Novatek’s total revenues amounted to RR 234.1 billion and Normalised EBITDA, including the company’s share in EBITDA of joint ventures, totalled RR 117.9 billion, representing quarter-on-quarter increases of 30.5% and 54.6%, respectively.
The increases in total revenues and Normalised EBITDA were largely due to the production launch at the second and third LNG trains at Yamal LNG in the second half of 2018, as well as increases in the company’s sales volumes and net realised prices in Russian roubles terms for the majority of our liquids.
Profit attributable to shareholders of Pao Novatek
Profit attributable to shareholders of Pao Novatek increased to RR 381.8 billion (RR 126.74 per share), or 8.9 times, as compared to the corresponding period in 2018. The increase was primarily due to the recognition of a net gain on disposal of a 10% participation interest in the Arctic LNG 2 project in March 2019 in the amount of RR 308.6 billion, as well as the recognition of non-cash foreign exchange effects on foreign currency denominated loans of the group and its joint ventures in both reporting periods.
Excluding the effects from the disposal of interests in subsidiaries and joint ventures and foreign exchange differences, Normalised profit attributable to shareholders of Pao Novatek increased to RR 65.7 billion (RR 21.82 per share), or by 40.1%, as compared to the corresponding period in 2018.
Cash used for capital expenditures
Our cash used for capital expenditures in 1Q19 increased by RR 32.8 billion, or 337.4%, to RR 42.5 billion compared to RR 9.7 billion in the corresponding period in 2018. In both reporting periods, a significant part of Novatek’s capital expenditures related to the development of its LNG projects (Arctic LNG 2 and the centre to build and fabricate large scale marine facilities located in the Murmansk region) and the North-Russkoye field.
Novatek’s total natural gas and liquids production including its proportionate share in the production of joint ventures increased by 13.0% and 1.7%, respectively. The main factor positively impacting the production increase was the launch of LNG production at the second and third LNG trains at Yamal LNG in 2H18.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/26042019/novatek-announces-consolidated-ifrs-results-for-1q19/