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Q1 2014 EARNINGS CALL – Novatek

Novatek · Apr 30, 2014 · 39 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Q1 2014 EARNINGS CALL – Novatek – slide 1
    First Quarter 2014 Operational and Financial Results Conference Call Mark A. Gyetvay, Chief Financial Officer Moscow, Russian Federation 30 April 2014
  2. Q1 2014 EARNINGS CALL – Novatek – slide 2
    Summary Highlights 1Q 2014 Increase in revenues driven by higher natural gas and liquids prices partially due to the start of sales of higher value added products from the Ust-Luga Complex: Natural gas sales increased by 5.8% Y-o-Y…
  3. Q1 2014 EARNINGS CALL – Novatek – slide 3
    Operational Overview 4
  4. Q1 2014 EARNINGS CALL – Novatek – slide 4
    Hydrocarbon Production Natural Gas Production, mmcm Liquids Production, mt 15,867 16,149 15,423 1,034 1,107 Joint Joint Joint 1,016 ventures ventures ventures Joint Joint Joint Khanchey ventures ventures Khanchey Khanchey…
  5. Q1 2014 EARNINGS CALL – Novatek – slide 5
    Purovsky Plant Total volumes delivered: 1,385 mt Yurkharovskoye field: 652 mt East-Tarkosalinskoye and Khancheyskoye fields: 210 mt Purchases from our joint ventures: 496 mt Other: 27 mt Total plant output: 1,373 mt Stable gas…
  6. Q1 2014 EARNINGS CALL – Novatek – slide 6
    Ust-Luga Complex Total volumes delivered: 1,012 mt Total output of marketable gas condensate refined products : 987 mt Naphtha: 803 mt Other products: 184 mt 941 mt of gas condensate refined products were dispatched to the…
  7. Q1 2014 EARNINGS CALL – Novatek – slide 7
    Liquids in Transit Yosu Goods in transit Goods in transit Goods in transit 31.03.2013 31.12.2013 31.03.2014 0 tankers 177 thousand tons 153 thousand tons 124 mt 53 mt 112 mt 41 mt Japan South Korea Japan USA (Naphtha)…
  8. Q1 2014 EARNINGS CALL – Novatek – slide 8
    Financial Overview 1Q 14 vs. 1Q 13 9
  9. Q1 2014 EARNINGS CALL – Novatek – slide 9
    Comparison of Quarterly Results (RR million) 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 Q-o-Q +/- % Y-o-Y +/- % Oil and gas sales 80,448 57,918 75,541 83,592 88,533 5.9% 10.0% Total revenues 80,565 58,030 75,648 83,915 88,676 5.7% 10.1% Operating…
  10. Q1 2014 EARNINGS CALL – Novatek – slide 10
    Market Distribution Gas Sales Volumes (mmcm) 18,739 17,772 16,382 14,628 14,403 16,632 88.8% 14,453 88.2% 16,677 93.8% 13,008 88.9% 12,928 89.8% 11.2% 2,107 1,620 11.1% 1,475 10.2% 1,929 11.8% 1,095 6.2% 1Q 13 2Q 13 3Q…
  11. Q1 2014 EARNINGS CALL – Novatek – slide 11
    Natural Gas Sales Volume Mix 100% 75% 62% 65% 73% 76% 89% 89% 90% 88% 94% 50% 25% 38% 35% 27% 24% 11% 11% 10% 12% 6% 0% 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 Ex-field End-customers 12
  12. Q1 2014 EARNINGS CALL – Novatek – slide 12
    Market Distribution Liquids Sales Volumes (mt) 1,614 1,545 1,411 1,353 1,060 1,351 83.7% 1,184 76.6% 1,097 81.1% 1,137 80.6% 801 75.6% 0 0 0 0 0 361 23.4% 263 16.3% 259 24.4% 256 18.9% 274 19.4% 1Q 13 2Q 13 3Q 13…
  13. Q1 2014 EARNINGS CALL – Novatek – slide 13
    Total Revenues (RR million) Change due to price Change due to volume From July 2013, most of our stable gas condensate was sent as raw material to the Commencement of gas condensate Ust-Luga Complex for further processing refined…
  14. Q1 2014 EARNINGS CALL – Novatek – slide 14
    Total Revenues Breakdown 1Q 14 7% 1% 3% Natural gas 23% Gas condensate 66% refined products LPG 1Q 13 2% 24% Stable gas condensate 5% Other 69% 15
  15. Q1 2014 EARNINGS CALL – Novatek – slide 15
    Realized Hydrocarbon Prices (net of VAT and export duties) 1Q 13 1Q 14 +/(-) +/(-)% 4Q 13 1Q 14 +/(-) +/(-)% Domestic prices 3,120 3,400 280 9.0% Natural gas end-customers, RR/mcm 3,610 3,400 (210) -5.8% 1,708 1,834 126 7.4% Natural…
  16. Q1 2014 EARNINGS CALL – Novatek – slide 16
    Operating Expenses (RR million and % of Total Revenues (TR)) 1Q 13 % of TR 1Q 14 % of TR 4Q 13 % of TR 1Q 14 % of TR 29,230 36.3% 27,657 31.2% Transportation expenses 26,092 31.1% 27,657 31.2% 4,717 5.9% 7,508 8.5% Taxes other than…
  17. Q1 2014 EARNINGS CALL – Novatek – slide 17
    Transportation Expenses (RR million) Change due to tariffs/distance Change due to volume (3,957) 29,230 (1,063) (184) 28 27,657 64 (277) 77 36 Other includes: 3,703 Unallocated rail services; Oil products transportation;…
  18. Q1 2014 EARNINGS CALL – Novatek – slide 18
    Taxes Other Than Income Tax Expense (RR million) Change due to tax rate Change due to production 2,797 51 7,508 (43) 67 (10) 4,717 (71) 1Q 13 Natural Gas Property Other taxes 1Q 14 gas condensate tax UPT tax The…
  19. Q1 2014 EARNINGS CALL – Novatek – slide 19
    General and Administrative Expenses (RR million) Decrease due to compensatory payments made in 2013 as part of the Salmanovskoye and Geofizicheskoye fields development 169 12 11 30 2,612 145 43 2,419 40 (257) Increase due to the…
  20. Q1 2014 EARNINGS CALL – Novatek – slide 20
    Materials, Services and Other Expenses (RR million) Increase in materials used for general maintenance at East-Tarko and purchase of materials and supplies for the Ust-Luga Complex 2,340 63 41 18 79 82 61 319 Increase due to:…
  21. Q1 2014 EARNINGS CALL – Novatek – slide 21
    Profit Attributable to NOVATEK Shareholders (RR million) 8,111 1,573 2,623 (732) (1,601) (2,791) (2,396) 25,115 (1,925) (566) (7) 22,826 1Q 13 Total OPEX Transport Taxes other Net gain on Other Finance Share of Income tax…
  22. Q1 2014 EARNINGS CALL – Novatek – slide 22
    Financial Overview 1Q 14 vs. 4Q 13 23
  23. Q1 2014 EARNINGS CALL – Novatek – slide 23
    Total Revenues (RR million) Change due to price Change due to volume Increase due to growth in total sales volumes and average realized price (2,217) 710 (992) 198 88,676 83,915 (16) (17) 368 (180) 1,019 1,120 4,768 Increase…
  24. Q1 2014 EARNINGS CALL – Novatek – slide 24
    Total Revenues Breakdown 1Q 14 7% 1% 3% Natural gas 23% Gas condensate refined 66% products LPG 4Q 13 7% 3% Stable gas condensate 23% Other 67% 25
  25. Q1 2014 EARNINGS CALL – Novatek – slide 25
    Transportation Expenses (RR million) Change due to tariffs/distance Change due to volume (2,030) 108 196 (34) 27,657 26,092 (41) 60 49 3,257 4Q 13 Natural Liquids Liquids Crude oil 1Q 14 gas by rail by tankers 26
  26. Q1 2014 EARNINGS CALL – Novatek – slide 26
    Taxes Other Than Income Tax Expense (RR million) Change due to tax rate Change due to production 946 50 7,508 66 (5) (15) 6,534 (68) 4Q 13 Natural Gas Property Other taxes 1Q 14 gas condensate tax UPT tax The…
  27. Q1 2014 EARNINGS CALL – Novatek – slide 27
    General and Administrative Expenses (RR million) Decrease mainly due to higher bonuses accrued to key management in 4Q 13 for the results achieved in 2013 3,742 Decrease due to consulting services provided to our production…
  28. Q1 2014 EARNINGS CALL – Novatek – slide 28
    Materials, Services and Other Expenses (RR million) Decrease in materials and supplies used for maintenance at the Ust-Luga Complex 139 2,491 (80) 12 29 2,340 (136) (39) (76) Increase due to: increase in average number of…
  29. Q1 2014 EARNINGS CALL – Novatek – slide 29
    Appendices 30
  30. Q1 2014 EARNINGS CALL – Novatek – slide 30
    Maintaining Margins (% of total revenues) Disposal of a 51% equity stake in Sibneftegas under the assets swap agreement and a 20% equity stake in Yamal LNG 88.5% Disposal of a 20% equity stake in Artic Russia B.V. 62.1%…
  31. Q1 2014 EARNINGS CALL – Novatek – slide 31
    Increasing Natural Gas Production (mmcm per day) Feb Feb Feb Feb Jun Jun Jun Jun May May May May Nov Nov Nov Nov Sep Sep Sep Sep Jul Oct Jul Oct Jul Oct…
  32. Q1 2014 EARNINGS CALL – Novatek – slide 32
    Condensed Statement of Financial Position (RR million) 31 March 2014 31 December 2013 +/(-) +/(-)% Total current assets 134,958 82,426 52,532 63.7% Incl. Cash and cash equivalents 43,344 7,889 35,455 449.4% Total non-current assets…
  33. Q1 2014 EARNINGS CALL – Novatek – slide 33
    Internally Funded Investment Program 30 000 4,0 20 000 3,0 Operating CF / CAPEX 10 000 2,0 RR millions - 1,0 (10 000) 0,0 (20 000) (1,0) 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2011 2011 2011 2012 2012 2012 2012…
  34. Q1 2014 EARNINGS CALL – Novatek – slide 34
    Total Debt Maturity Profile (RR million) 57,629 58,627 The Group has available funds: ZAO BNP PARIBAS Bank USD 100 mln until September 2014 30,198 Credit Agricole Corporate and Investment Bank USD 100 mln 16,286 until April…
  35. Q1 2014 EARNINGS CALL – Novatek – slide 35
    Yamal LNG Construction Works 36
  36. Q1 2014 EARNINGS CALL – Novatek – slide 36
    Piling for the LNG tanks
  37. Q1 2014 EARNINGS CALL – Novatek – slide 37
    Materials Offloading Facility 38
  38. Q1 2014 EARNINGS CALL – Novatek – slide 38
    Living Camp
  39. Q1 2014 EARNINGS CALL – Novatek – slide 39
    Questions and Answers 40

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