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Q2 2014 Earnings Call – Novatek

Novatek · Jul 31, 2014 · 35 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. Q2 2014 Earnings Call – Novatek – slide 1
    Second Quarter 2014 Operational and Financial Results Conference Call Mark A. Gyetvay, Deputy Chairman of the Management Board Moscow, Russian Federation 31 July 2014
  2. Q2 2014 Earnings Call – Novatek – slide 2
    Summary Highlights 2Q 2014 Increase in revenues driven by higher natural gas prices and sales volumes, as well as the commencement of higher value added product sales from the Ust-Luga Complex: Natural gas sales increased Y-o-Y by…
  3. Q2 2014 Earnings Call – Novatek – slide 3
    Operational Overview 4
  4. Q2 2014 Earnings Call – Novatek – slide 4
    Hydrocarbon Production Natural Gas Production, mmcm Liquids Production, mt 14,949 15,423 15,239 Joint Joint 1,008 1,107 1,104 Joint ventures ventures Joint Joint Joint ventures Khanchey Khanchey Khanchey ventures ventures…
  5. Q2 2014 Earnings Call – Novatek – slide 5
    Purovsky Plant Total volumes delivered: 1,429 mt Yurkharovskoye field: 632 mt East-Tarkosalinskoye and Khancheyskoye fields: 212 mt Purchases from our joint ventures: 564 mt Other fields: 21 mt Total plant output: 1,400 mt…
  6. Q2 2014 Earnings Call – Novatek – slide 6
    Ust-Luga Complex Total volumes delivered: 1,031 mt Total output of marketable gas condensate refined products: 1,014 mt Naphtha: 807 mt Other products: 207 mt 959 mt of gas condensate refined products were dispatched to the…
  7. Q2 2014 Earnings Call – Novatek – slide 7
    Liquids in Transit Yosu Goods in transit Goods in transit Goods in transit 30.06.2013 31.03.2014 30.06.2014 140 thousand tons 153 thousand tons 25 thousand tons 60 mt 80 mt 25 mt 112 mt 41 mt South Korea South America…
  8. Q2 2014 Earnings Call – Novatek – slide 8
    Financial Overview 2Q 14 vs. 2Q 13 9
  9. Q2 2014 Earnings Call – Novatek – slide 9
    Comparison of Quarterly Results (RR million) 2Q 13 3Q 13 4Q 13 1Q 14* 2Q 14 Q-o-Q +/- % Y-o-Y +/- % Oil and gas sales 57,918 75,541 83,592 88,533 87,881 -0.7% 51.7% Total revenues 58,030 75,648 83,915 88,676 88,370 -0.3% 52.3% Operating…
  10. Q2 2014 Earnings Call – Novatek – slide 10
    Market Distribution Gas Sales Volumes (mmcm) 17,772 16,382 15,528 14,628 14,403 14,453 88.2% 16,677 93.8% 13,008 88.9% 12,928 89.8% 14,604 94.0% 1,620 11.1% 1,475 10.2% 1,929 11.8% 1,095 6.2% 924 6.0% 2Q 13 3Q 13 4Q…
  11. Q2 2014 Earnings Call – Novatek – slide 11
    Natural Gas Sales Volume Mix 100% 75% 62% 65% 73% 89% 89% 90% 88% 94% 94% 50% 25% 38% 35% 27% 11% 11% 10% 12% 6% 6% 0% 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 Ex-field End-customers 12
  12. Q2 2014 Earnings Call – Novatek – slide 12
    Market Distribution Liquids Sales Volumes (mt) 1,687 1,545 1,411 1,353 1,060 1,302 77.2% 1,184 76.6% 1,097 1,137 80.6% 81.1% 801 75.6% 0 0 0 0 0 23.4% 385 22.8% 274 19.4% 361 259 24.4% 256 18.9% 2Q 13 3Q 13 4Q 13 1Q…
  13. Q2 2014 Earnings Call – Novatek – slide 13
    Total Revenues (RR million) Change due to price From July 2013, most of our stable gas condensate was sent as raw material to the Change due to volume Ust-Luga Complex for further processing 116 10 1,099 500 88,370 (8,246) 639…
  14. Q2 2014 Earnings Call – Novatek – slide 14
    Total Revenues Breakdown 2Q 14 6% 1%4% Natural gas 28% Gas condensate 61% refined products LPG 2Q 13 4% 15% Stable gas condensate 7% Other 74% 15
  15. Q2 2014 Earnings Call – Novatek – slide 15
    Realized Hydrocarbon Prices (net of VAT and export duties) 2Q 13 2Q 14 +/(-) +/(-)% 1Q 14 2Q 14 +/(-) +/(-)% Domestic prices 3,117 3,571 454 14.6% Natural gas end-customers, RR/mcm 3,400 3,571 171 5.0% 1,581 1,834 253 16.0% Natural…
  16. Q2 2014 Earnings Call – Novatek – slide 16
    Operating Expenses (RR million and % of Total Revenues (TR)) 2Q 13 % of TR 2Q 14 % of TR 1Q 14 % of TR 2Q 14 % of TR 22,859 39.4% 26,695 30.2% Transportation expenses 27,657 31.2% 26,695 30.2% 4,436 7.6% 7,353 8.3% Taxes other than…
  17. Q2 2014 Earnings Call – Novatek – slide 17
    Transportation Expenses (RR million) Change due to tariffs/distance Change due to volume (544) (330) 7 26,695 172 74 1 739 1,390 Other includes: 22,859 Unallocated rail 2,327 services; Insurance; and Other 2Q 13 Natural…
  18. Q2 2014 Earnings Call – Novatek – slide 18
    Taxes Other Than Income Tax Expense (RR million) Change due to tax rate Change due to production 2,745 49 7,353 (51) 59 22 4,436 93 2Q 13 Natural Gas Property Other taxes 2Q 14 gas condensate tax UPT tax The increase…
  19. Q2 2014 Earnings Call – Novatek – slide 19
    General and Administrative Expenses (RR million) Increase primarily due to compensatory payments made in 2Q 14 as a part of the development of the Salmanovskoye and Geofizicheskoye fields (in 2013 such payments were made in 1Q) 18 16…
  20. Q2 2014 Earnings Call – Novatek – slide 20
    Materials, Services and Other Expenses (RR million) Increase due to the commencement of LPG rail Increase in materials used for general road deliveries from the Tobolsk station in 2Q 14 maintenance at our production subsidiaries and…
  21. Q2 2014 Earnings Call – Novatek – slide 21
    Profit Attributable to NOVATEK Shareholders (RR million) 30,340 4,240 4,263 57 31,950 (9,304) (4,320) 1,825 (3,836) (2,917) 11,602 2Q 13 Total OPEX Transport Taxes other Other Finance Share of Income tax…
  22. Q2 2014 Earnings Call – Novatek – slide 22
    Financial Overview 2Q 14 vs. 1Q 14 23
  23. Q2 2014 Earnings Call – Novatek – slide 23
    Total Revenues (RR million) Change due to price Change due to volume 2,546 88,676 1,643 (258) 21 (30) 88,370 (337) 142 370 29 346 2,636 (7,414) Decrease due to: 12.6% decrease in our total sales volumes; partially offset by…
  24. Q2 2014 Earnings Call – Novatek – slide 24
    Total Revenues Breakdown 2Q 14 6% 1% 4% Natural gas 28% Gas condensate refined 61% products LPG 1Q 14 7% 1% 3% Stable gas condensate 23% Other 66% 25
  25. Q2 2014 Earnings Call – Novatek – slide 25
    Transportation Expenses (RR million) Change due to tariffs/distance Change due to volume 1,850 27,657 (136) (269) (38) 26,695 223 154 40 (1) (2,785) Other includes: Unallocated rail services; Insurance; and Other 1Q 14…
  26. Q2 2014 Earnings Call – Novatek – slide 26
    Taxes Other Than Income Tax Expense (RR million) Change due to tax rate Change due to production 7,508 7,353 (123) (19) (48) 35 1Q 14 Natural Gas Property Other taxes 2Q 14 gas condensate tax UPT tax The decrease…
  27. Q2 2014 Earnings Call – Novatek – slide 27
    General and Administrative Expenses (RR million) 50 45 3,155 43 4 259 46 (11) 107 2,612 Increase due to compensatory payments made in 2Q 14 as a part of the development of the Salmanovskoye and Geofizicheskoye fields (no such…
  28. Q2 2014 Earnings Call – Novatek – slide 28
    Materials, Services and Other Expenses (RR million) Increase due to the commencement of LPG rail road deliveries from the Tobolsk station in 2Q 14 Increase due to planned repair works at our production subsidiaries 140 69 2,909…
  29. Q2 2014 Earnings Call – Novatek – slide 29
    Appendices 30
  30. Q2 2014 Earnings Call – Novatek – slide 30
    Maintaining Margins (% of total revenues) Disposal of a 51% equity stake in OAO Sibneftegas under the assets swap agreement and 20% equity stake in OAO Yamal LNG 88.5% Disposal of a 20% equity stake in Artic Russia B.V. 62.1%…
  31. Q2 2014 Earnings Call – Novatek – slide 31
    Increasing Natural Gas Production (mmcm per day) Jan Jan Jan Jan Mar Mar Mar Mar Apr Apr Apr Apr Feb Feb Feb Feb May May May Jun May Jun Jun Nov Nov Nov…
  32. Q2 2014 Earnings Call – Novatek – slide 32
    Condensed Statement of Financial Position (RR million) 30 June 2014 31 December 2013 +/(-) +/(-)% Total current assets 107,483 82,426 25,057 30.4% Incl. Cash and cash equivalents 46,307 7,889 38,418 487.0% Total non-current assets…
  33. Q2 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) 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 2011 2011 2012 2012 2012 2012 2013…
  34. Q2 2014 Earnings Call – Novatek – slide 34
    Total Debt Maturity Profile (RR million) 55,469 55,258 29,272 The Group has a credit line facility with Gazprombank in the 15,348 amount of RR 10 bln available until July 2015 5,456 1 July 2014 - 1 July 2015 - 1 July 2016 -…
  35. Q2 2014 Earnings Call – Novatek – slide 35
    Questions and Answers 36

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