9 Nov 2011 07:00
RELEASE
09.11.2011
GAZPROM REPORTS ITS CONSOLIDATED INTERIM CONDENSED FINANCIAL RESULTS UNDER INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS)FOR THE SIX MONTHS ENDED JUNE 30, 2011
On November 9, 2011, 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 six months ended June 30, 2011.
The table below presents the unaudited consolidated interim condensed statement of comprehensive income prepared in accordance with IFRS for the six months ended June 30, 2011 and 2010. All amounts are presented in millions of Russian Rubles.
Six months ended | |||||
June 30 | |||||
2011 | 2010 | ||||
| |||||
Sales | 2,347,071 | 1,716,279 | |||
Net (loss) gain from trading activity | (236) | 2,437 | |||
Operating expenses | (1,498,340) | (1,140,996) | |||
Operating profit | 848,495 | 577,720 | |||
Finance income | 106,765 | 91,588 | |||
Finance expense | (44,675) | (83,444) | |||
Share of net income of associated undertakings and jointly controlled entities | 62,566 | 52,945 | |||
Gains on disposal of available-for-sale financial assets | 831 | __ 1,389 | |||
Profit before profit tax | 973,982 | 640,198 | |||
Current profit tax expense | (170,346) | (99,390) | |||
Deferred profit tax expense | (18,434) | (32,574) | |||
Profit tax expense | (188,780) | (131,964) | |||
Profit for the period | 785,202 | 508,234 | |||
Other comprehensive income | |||||
(Losses) gains arising from change in fair value of available-for-sale financial assets, net of tax | (2,389) | 174 | |||
Share of other comprehensive (loss) income of associated undertakings and jointly controlled entities | (6,352) | 726 | |||
Translation differences | (25,034) | (13,315) | |||
Other comprehensive loss for the period, net of tax | (33,775) | (12,415) | |||
Total comprehensive income for the period | 751,427 | 495,819 | |||
| |||||
Profit attributable to: | |||||
owners of OAO Gazprom | 771,669 | 494,684 | |||
non-controlling interest | _13,533 | _ 13,550 | |||
785,202 | 508,234 | ||||
Total comprehensive income attributable to: | |||||
owners of OAO Gazprom | 739,777 | 480,079 | |||
non-controlling interest | ___11,650 | ___15,740 | |||
751,427 | 495,819 | ||||
Sales (net of excise tax, VAT and customs duties) increased by RUB 630,792 million, or 37%, toRUB 2,347,071 million in the six months ended June 30, 2011 compared to the six months endedJune 30, 2010. More detailed information on our sales for the six months ended June 30, 2011 and 2010 is presented in the table below.
in millions of RUB (unless otherwise stated) | Six months ended June 30 | ||
| 2011 | 2010 | |
Sales of gas | |||
| Europe and other countries Net sales (net of excise tax and customs duties) | 742,212 | 524,361 | |
Volumes in bcm | 86.6 | 76.3 | |
Average price, RUB/mcm (including excise tax and customs duties) | 10,356.0 | 8,646.0 | |
| FSU | |||
Net sales (net of VAT and customs duties) | 331,434 | 188,152 | |
Volumes in bcm | 46.8 | 31.6 | |
Average price, RUB/mcm (including customs duties, net of VAT) | 7,630.5 | 6,848.2 | |
| Russia | |||
Net sales (net of VAT) | 398,630 | 343,587 | |
Volumes in bcm | 154.2 | 150.7 | |
Average price, RUB/mcm (net of VAT) | 2,585.6 | 2,279.5 | |
| Total sales of gas | |||
Net sales (net of excise tax, VAT and customs duties) | 1,472,276 | 1,056,100 | |
Volumes in bcm | 287.6 | 258.6 | |
Net sales of refined products (net of excise tax, VAT and customs duties) | 451,938 | 319,125 | |
Net electric and heat energy sales (net of VAT) | 180,215 | 145,733 | |
Net sales of crude oil and gas condensate (net of excise tax, VAT and customs duties) | 117,293 | 93,520 | |
Net gas transportation sales (net of VAT) | 55,500 | 45,576 | |
Other revenues (net of VAT) | _69,849 | _ 56,225 | |
Total sales (net of excise tax, VAT and customs duties) | 2,347,071 | 1,716,279 | |
Net sales of gas increased by RUB 416,176 million, or 39%, to RUB 1,472,276 million in the six months ended June 30, 2011 compared to the six months ended June 30, 2010. This increase was primarily due to higher volumes of gas sold in Russia, FSU, Europe and other countries which was enhanced by the increase of average realized prices in RUB terms (including excise tax and customs duties) for sales in all geographical segments.
For the six months ended June 30, 2011 net sales of gas to Europe and other countries increased by RUB 217,851 million, or 42%, to RUB 742,212 million compared to the six months ended June 30, 2010. This mainly results from the increase of average realized prices in RUB terms (including excise tax and customs duties) by 20% which was enhanced by the increase of the volume of gas sold by 13%, or 10.3 bcm.
Net sales of gas to FSU countries increased by RUB 143,282 million, or 76%, to RUB 331,434 million in the six months ended June 30, 2011 compared to the six months ended June 30, 2010. The increase of sales in this segment is explained by the increase of volumes of gas sold by 48%, or 15.2 bcm, which was enhanced by the increase of the average realized prices in RUB terms (including customs duties, net of VAT) by 11%.
Net sales of gas in the domestic market increased by RUB 55,043 million, or 16%, to RUB 398,630 million in the six months ended June 30, 2011 compared to the six months ended June 30, 2010. This is explained primarily by the increase in the average domestic price for gas set up by the Federal Tariffs Service.
Net sales of refined products increased by RUB 132,813 million, or 42%, to RUB 451,938 million in the six months ended June 30, 2011 compared to the six months ended June 30, 2010. The increase was due to the increase of prices for refined products and increase of volumes sold.
Net electric and heat energy sales increased by RUB 34,482 million, or 24%, to RUB 180,215 million in the six months ended June 30, 2011 compared to the six months ended June 30, 2010. The increase in electric and heat energy sales is explained by the increase in the tariffs for electric and heat energy and by the increase in volumes.
In the six months ended June 30, 2011 net sales of crude oil and gas condensate increased by RUB 23,773 million, or 25%, to RUB 117,293 million compared to the six months ended June 30, 2010. The increase in net sales of crude oil and gas condensate primarily resulted from the Gazprom neft activities: net sales of crude oil increased by RUB 15,393 million, or 19%, to RUB 96,228 million in the six months ended June 30, 2011 compared to the six months ended June 30, 2010. The increase of gas condensate sales was primarily due to the increase in the average realized prices and volumes of gas condensate sold.
In the six months ended June 30, 2011 net gas transportation sales increased by RUB 9,924 million, or 22%, to RUB 55,500 million compared to the six months ended June 30, 2010. The increase in net gas transportation sales was primarily due to the increase in the tariffs for transportation of gas for independent gas suppliers, and due to the increase in volumes of gas transported for independent gas suppliers.
Operating expenses increased by RUB 357,344 million, or 31%, to RUB 1,498,340 million in the six months ended June 30, 2011 compared to the six months ended June 30, 2010.
Major item in the total amount of operating expenses is «Purchased gas and oil» which increased by RUB 178,403 million. The increase in cost of purchased gas relates to the increase in volumes and increase in prices of gas purchased from third parties within Russian Federation and abroad.
In the six months ended June 30, 2011 our profit for the period attributable to owners ofOAO Gazprom totaled RUB 771,669 million which is RUB 276,985 million, or 56%, higher compared to the six months ended June 30, 2010.
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) decreased by RUB 59,384 million, or 7%, from RUB 870,993 million as of December 31, 2010 to RUB 811,609 million as of June 30, 2011. This can be explained by the decrease in long-term borrowings mainly due to appreciation of RUB against USD.
More detailed information on the IFRS consolidated interim condensed financial information for the six months ended June 30, 2011 can be found on OAO Gazprom web site (www.gazprom.ru).
OAO GAZPROM INFORMATION DIVISION
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