NOVATEK Announces Consolidated IFRS Results for the Year Ended 31 December 2014
Total revenues grew by 20.0% year-on-year to RR 357.6 billion for the twelve months ended 31 December 2014 from RR 298.2 billion in 2013, largely due to an increase in natural gas and liquids sales volumes and prices.
The start of higher value added products sales from the Ust-Luga Gas Condensate Fractionation and Transshipment Complex (the “Ust-Luga Complex”), launched in June 2013, had a positive impact on the average price of liquids, whereas the growth in the average natural gas sales price was driven by higher share of end customers in our overall natural gas sales volumes mix.
In 2014, we recorded a year-on-year increase of 15.1% in the Company’s Normalized EBITDA, inclusive of subsidiaries, which totaled RR 140.4 billion. The Normalized EBITDA, including our respective share in the EBITDA of joint ventures, increased by 23.4% as compared to 2013 and amounted to RR 159.6 billion. The growth in our Normalized EBITDA was positively impacted by a higher share of liquid hydrocarbons in our overall sales volumes mix as well as higher liquids sales margins due to the launch of the Ust-Luga Complex.
In 2014, Normalized Profit attributable to NOVATEK shareholders, adjusted for the net gain from disposal of interest in joint ventures, decreased by 55.9% to RR 35.2 billion, or RR 11.65 per share, as compared to RR 79.8 billion, or RR 26.35 per share, in 2013. Our profit dynamics over the respective reporting periods were negatively impacted by non-cash foreign exchange effects (including at the joint ventures level) as the Russian rouble depreciated against the US dollar by 71.9% in 2014 as compared with 7.8% in 2013. Net of these effects, our normalized profit in 2014 increased by 36%.
