Novatek released on July 27, 2016, its consolidated interim condensed financial statements for the 3 and 6 months ended 30 June 2016 prepared in accordance with International Financial Reporting Standards (IFRS).
In the 2nd quarter and 1st half 2016, total revenues of the company increased by 13.5% and 18.0%, respectively, compared to the corresponding periods of 2015.
Normalized EBITDA, inclusive of joint ventures, amounted to RR 59.5 billion in the 2nd quarter 2016 and RR 121.6 billion in the first half 2016, representing an increase of 20.2% and 16.6%, respectively, as compared to the corresponding periods of 2015.
The growth in revenues and EBITDA was largely driven by substantial increase in liquids sales volumes and higher natural gas sales prices. The decrease in net average sales prices in rouble terms for certain types of liquid hydrocarbons due to changes in the respective market benchmarks had a negative impact on the dynamics of revenues and EBITDA.
Profit attributable to NOVATEK shareholders increased to RR 45.9 billion (RR 15.22 per share), or by 9.6% as compared to the second quarter 2015. As a result, in the first half 2016, profit amounted to RR 161.9 billion (RR 53.61 per share), representing an increase of 121.7% as compared to the first half 2015.
Profit dynamics was positively impacted by the closing in the 1st quarter 2016 of a transaction for the sale of a 9.9% equity stake in Yamal LNG to the Silk Road Fund of China. Excluding profit from this transaction, normalized profit attributable to NOVATEK shareholders in the first half 2016 totalled RR 104.2 billion (RR 34.51 per share), representing a 42.7% increase as compared to the 1st half 2015. Profit dynamics was also positively impacted by the non-cash items such as foreign exchange effect and the change in fair value of non-commodity financial instruments.
Natural gas sales volumes totalled 14.1 billion cubic meters (bcm) in the 2nd quarter 2016 and 31.8 bcm in the 1st half 2016. Compared to the 1st half 2015 the sales volumes increased by 4.5% which was mainly due to the development of gas trading at the Saint-Petersburg commodity exchange and higher volumes sold to traders. As at the end of the 1st half 2016, the total amount of natural gas recorded as inventory totalled 1.7 bcm compared to 1.6 bcm as at the end of the 1st half 2015.
In the 2nd quarter 2016, liquid hydrocarbon sales volumes amounted to 4,139 mt, representing a 42.2% increase in volumes sold as compared to the 2nd quarter 2015. As a result, in the 1st half 2016, liquid hydrocarbon sales volumes grew to 8,781 mt, representing a 52.8% increase as compared to the 1st half 2015.
This significant growth was largely due to the launch of the Yarudeyskoye oil field in December 2015 and the Termokarstovoye and Yaro-Yakhinskoye gas and gas condensate fields in the 1st half 2015.
The dynamics of liquids sales volumes was also positively impacted by decrease in liquids inventories by 240 mt in the 1st half 2016 compared to the increase by 72 mt in the 1st half 2015. As at 30 June 2016, 670 mt of liquid hydrocarbons were in transit or storage and recognized as inventory.