26 Aug 2009 07:23
PRESS RELEASE
26.08.2009
Moscow
GAZPROM REPORTS ITS CONSOLIDATED INTERIM CONDENSED FINANCIAL RESULTS UNDER INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) FOR THE THREE MONTHS ENDED 31 MARCH 2009
On 26 August 2009 OAO Gazprom issued its unaudited consolidated interim condensed financial information prepared in accordance with International Accounting Standard 34 "Interim Financial Reporting" (IAS 34) for the three months ended 31 March 2009.
The table below presents the unaudited consolidated interim condensed statement of comprehensive income prepared in accordance with IFRS for the three months ended 31 March 2009 and 2008. All amounts are presented in millions of Russian Roubles, unless otherwise stated.
| Three months ended | |||||
| 31 March | |||||
| 2009 | 2 008 | ||||
| Sales (net of excise tax, VAT and customs duties) | 931,403 | 911,750 | |||
| Operating expenses | (648,810) | (546,123) | |||
| Operating profit | 282,593 | 365,627 | |||
|
Loss from change in fair value of call option | - | (17,423) | |||
| Finance income | 119,014 | 56,644 | |||
| Finance expenses | (268,438) | (40,590) | |||
| Share of net income of associated undertakings and jointly controlled entities | 13,536 | 12,454 | |||
| Gains on disposal of available-for-sale financial assets | __516 | _3,616 | |||
| Profit before profit tax | 147,221 | 380,328 | |||
| Current profit tax expense | (33,787) | (92,196) | |||
| Deferred profit tax expense | _(3,257) | _(2,082) | |||
| Profit tax expense | (37,044) | (94,278) | |||
| Profit for the period | 110,177 | 286,050 | |||
| Other comprehensive income | |||||
| Gain (losses) arising from change in fair value of available-for-sale financial assets, net of tax | 1,740 | (40,187) | |||
| Share of other comprehensive income of associated undertakings and jointly controlled entities | 1,617 | - | |||
| Translation differences | __11,811 | ___3,056 | |||
| Other comprehensive income (loss) for the period, net of tax | 15,168 | (37,131) | |||
| Comprehensive income for the period | 125,345 | 248,919 | |||
| Profit attributable to: | |||||
| owners of OAO Gazprom | 103,679 | 273,439 | |||
| non-controlling interest | _6,498 | 12,611 | |||
| 110,177 | 286,050 | ||||
| Total comprehensive income attributable to: | |||||
| owners of OAO Gazprom | 119,135 | 237,266 | |||
| non-controlling interest | ___6,210 | __11,653 | |||
| 125,345 | 248,919 | ||||
Sales (net of excise tax, VAT and customs duties) increased by RR 19,653 million, or 2%, to RR 931,403 million in the three months ended 31 March 2009 compared to the three months ended 31 March 2008. More detailed information on our sales for the three months ended 31 March 2009 and 2008 is presented in the table below.
| in millions of RR (unless otherwise stated) | Three months ended 31 March | ||
| 2009 | 2008 | ||
| Sales of gas | |||
| Europe and other countries Net sales (net of excise tax and customs duties) | 433,239 | 339,037 | |
| Volumes in bcm | 37.1 | 53.5 | |
| Average price, RR/mcm (including excise tax and customs duties) | 12,986.4 | 8,381.7 | |
| FSU | |||
| Net sales (net of excise tax, VAT and customs duties) | 85,281 | 83,379 | |
| Volumes in bcm | 9.7 | 25.0 | |
| Average price, RR/mcm (including excise tax, customs duties and net of VAT) | 9,219.3 | 3,654.1 | |
| Russia | |||
| Net sales (net of excise tax and VAT) | 157,947 | 173,376 | |
| Volumes in bcm | 93.2 | 105.0 | |
| Average price, RR/mcm (including excise tax and net of VAT) | 1,695.1 | 1,651.5 | |
| Total sales of gas | |||
| Net sales (net of excise tax, VAT and customs duties) | 676,467 | 595,792 | |
| Volumes in bcm | 140.0 | 183.5 | |
| Net sales of refined products (net of excise tax, VAT and customs duties) | 97,804 | 171,163 | |
| Net sales of crude oil and gas condensate (net of excise tax, VAT and customs duties) | 35,955 | 57,950 | |
| Electric and heat energy sales (net of VAT) | 83,147 | 40,286 | |
| Gas transportation sales (net of VAT) | 12,825 | 15,905 | |
| Other revenues (net of VAT) | __25,205 | _30,654 | |
| Total sales (net of excise tax, VAT and customs duties) | 931,403 | 911,750 | |
Net sales of gas increased by RR 80,675 million, or 14%, to RR 676,467 million in the three months ended 31 March 2009 compared to the three months ended 31 March 2008. This increase was primarily due to higher prices for gas in all geographical segments.
For the three months ended 31 March 2009 net sales of gas to Europe and other countries increased by RR 94,202 million, or 28%, to RR 433,239 million compared to the three months ended 31 March 2008. This mainly results from the increase of average realized prices in RR terms (including excise tax and customs duties) by 55% which was compensated by the decrease of the volume of sold gas by 31%, or 16.4 bcm.
Net sales of gas to FSU countries increased by RR 1,902 million, or 2%, to RR 85,281 million in the three months ended 31 March 2009 compared to the three months ended 31 March 2008. The increase of sales in this segment is explained by higher average realized prices, which was compensated by the decrease of the volume of sold gas by 61%, or 15.3 bcm.
Net sales of gas in the domestic market decreased by RR 15,429 million, or 9%, to RR 157,947 million in the three months ended 31 March 2009 compared to the three months ended 31 March 2008. This is explained primarily by the decrease of the volume of sold gas by 11%, or 11.8 bcm, which was compensated by the increase in the average domestic price for gas set up by the Federal Tariffs Service.
Net sales of refined products decreased by RR 73,359 million, or 43%, in the three months ended 31 March 2009. The decrease was primarily due to the decline in prices for refined products and deconsolidation of the Sibur Group.
In the three months ended 31 March 2009 net sales of crude oil and gas condensate decreased by RR 21,995 million, or 38%. The decrease of net sales of crude oil and gas condensate primarily resulted from the Gazprom Neft activities: net sales of crude oil decreased by RR 18,180 million, or 35%, to RR 33,705 million in the three months ended 31 March 2009 compared to the three months ended 31 March 2008.
Net electric and heat energy sales increased by RR 42,861 million, or 106%, in the three months ended 31 March 2009. The increase in electric and heat energy sales mainly resulted from operations of Gazprom Germania Group and OAO Mosenergo, and consolidation as subsidiaries of ОАО WGC-2 and ОАО WGC-6 (starting from III quarter of 2008).
Other revenues decreased by RR 5,449 million, or 18%, to RR 25,205 million in the three months ended 31 March 2009 compared to the three months ended 31 March 2008. Other revenues are different in their composition. This is explained by the fact that the Group includes a lot of companies involved in different types of activities.
Operating expenses increased by RR 102,687 million, or 19%, to RR 648,810 million in the three months ended 31 March 2009 compared to the three months ended 31 March 2008.
Major items whose growth resulted in the increase of the total amount of operating expenses are: purchased oil and gas (RR 166,111 million). The cost of purchased gas increased by RR 178,530 million, or 174%, and the cost of purchased oil decreased by RR 12,419 million, or 36%. The increase in cost of purchased gas was mainly caused by the increase in prices for gas from Central Asia and increase in gas trading activities on the European market and respective increase of gas purchases in Europe. This increase was partially compensated by the cost reduction within the following items: taxes other than on income (RR 22,762 million), staff costs (RR 12,480 million), other (RR 44,981 million).
In the three months ended 31 March 2009 our profit for the period attributable to owners of OAO Gazprom totaled RR 103,679 million which is RR 169,760 million, or 62%, lower compared to the three months ended 31 March 2008.
Our net debt balance (defined as the sum of short-term borrowings, including current portion of long-term borrowings, short-term promissory notes payable, long-term borrowings, long-term promissory notes payable and restructured tax liabilities, net of cash and cash equivalents and balances of cash and cash equivalents restricted as to withdrawal under the terms of certain borrowings and other contractual obligations) increased by RR 172,964 million, or 17%, from RR 1,018,346 million as of 31 December 2008 to RR 1,191,310 million as of 31 March 2009. This can be explained primarily by the revaluation of borrowings denominated in foreign currency.
More detailed information on the IFRS consolidated interim condensed financial information for the three months ended 31 March 2009 can be found on OAO Gazprom web site (www.gazprom.ru).
OAO GAZPROM INFORMATION DIVISION
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