Novatek releases Q2 and H1 2018 results
Published by Will Owen,
Pao Novatek has released its consolidated interim condensed financial statements as of and for the three and six months ended 30 June 2018 prepared in accordance with International Financial Reporting Standards (IFRS).
In Q2 2018, the company’s total revenues amounted to RR195.8 billion and EBITDA, including the company’s share in EBITDA of joint ventures, totalled RR101.3 billion, representing increases of 52.0% and 80.7%, respectively, as compared to the corresponding period in 2017. Total revenues and Normalized EBITDA, including company share in EBITDA of joint ventures, during the six months ended 30 June 2018 amounted to RR375.2 billion and RR177.6 billion, representing increases of 32.4% and 43.0%, respectively, as compared to the corresponding period in 2017. The increases in company total revenues and Normalised EBITDA were largely due to the production launch of the first LNG train at Yamal LNG at the end of 2017, as well as an increase in average realised liquids and natural gas prices.
In Q2 and the H1 2018, profit attributable to shareholders of Pao Novatek increased to RR32.0 billion (RR10.63 per share), or by approximately ten-fold, and to RR75.2 billion (RR24.93 per share), or by 1.2%, respectively, as compared to the corresponding periods in 2017. Profit in the reporting periods was significantly impacted by the recognition of substantial non-cash foreign exchange effects on foreign currency denominated loans of the group and its joint ventures. Excluding the effect of foreign exchange differences, as well as the one-time effect from the disposal of interests in joint ventures, Normalised profit attributable to shareholders of Pao Novatek totalled RR54.3 billion (RR18.01 per share) in Q2 2018 and RR101.2 billion (RR33.57 per share) in H1 2018, representing increases of 60.8% and 29.5%, respectively, as compared to the corresponding periods in 2017.
Pao Novatek’s operational results for Q2 and H1 of 2018 were significantly impacted by the production launch of the first LNG train at Yamal LNG at the end of 2017, as well as the acquisitions of new producing fields at the end of 2017 and in Q1 2018 (the Beregovoye, the West-Yaroyakhinskoye, and the Syskonsyninskoye fields). As a result, total natural gas production for Q2 and H1 2018 increased by 4.2% and 3.2%, respectively, and total liquids production changed insignificantly (increased by 0.3% and decreased 0.4%, respectively).
In Q2 and H1 2018, natural gas sales volumes totalled 15.1 billion and 35.4 billion m3, representing increases of 5.3% and 6.9%, respectively, as compared to the corresponding periods in 2017, due to the commencement of sales of LNG purchased from the company’s joint venture Yamal LNG to international markets from December 2017 and an increase in volumes sold in the Russian Federation. As at the end of Q2 2018, the company’s cumulative natural gas inventory balances mainly in the Underground Gas Storage Facilities, the Gas Transmission System and own pipeline infrastructure totalled 1.3 billion m3 as compared to 0.6 billion m3 at the end of Q2 2017.
In Q2 2018, liquid hydrocarbons sales volumes amounted to 4.3 million t, representing a 4.9% increase compared to Q2 2017; mainly from the sale of stable gas condensate refined products in transit at the end of Q1 2018. In H1 2018, liquid hydrocarbon sales volumes totalled 8.1 million t, representing a marginal decrease by 1.6% compared to the corresponding prior year period. As at 30 June 2018, the company recorded 806 million t of liquid hydrocarbons in transit or storage and recognised as inventory as compared to 699 million t at 30 June 2017. The company’s liquid hydrocarbon inventory balances tend to fluctuate period-on-period and are usually realised in the following reporting period.
Read the article online at: https://www.lngindustry.com/liquid-natural-gas/26072018/novatek-releases-q2-and-h1-2018-results/
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