OGZD.L Regulatory News (OGZD)

21 Dec 2006 16:22

Oao Gazprom21 December 2006 GAZPROM REPORTS ITS CONSOLIDATED INTERIM CONDENSED FINANCIAL RESULTS UNDER INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) FOR THE SIX MONTHS ENDED 30 JUNE 2006 On ___ December 2006 OAO Gazprom issued its unaudited consolidated interimcondensed financial information prepared in accordance with InternationalAccounting Standard 34 "Interim Financial Reporting" (IAS 34) for the six monthsended 30 June 2006. A significant factor impacting the comparability of the consolidated financialinformation of Gazprom Group for the six months ended 30 June 2006 with the sameperiod of 2005 was the acquisition in October 2005 of OAO Sibneft (from June2006 - OAO Gazprom Neft). Higher oil and gas prices also significantly impactedresults. The table below presents the unaudited consolidated interim condensedstatement of income for the six months ended 30 June 2006 and 2005. Allamounts are presented in million Russian Roubles, unless otherwise stated. Six months ended 30 June 2006 2005___________________________________________________________________________Sales (net of excise tax, VAT and customs duties) 1,091,424 611,233Operating expenses (686,425) (402,178) _________ _________Operating profit 404,999 209,055 Finance income 61,845 25,788Finance expenses (39,354) (33,568)Share of net income of associated undertakings and jointly controlled entities 16,968 8,943Gains on disposal of available-for-sale financial assets 3,144 1,427 _________ _________Profit before profit tax 447,602 211,645 Current profit tax expense (112,355) (51,081)Deferred profit tax expense (3,011) (6,565) _________ _________Profit tax expense (115,366) (57,646)Profit for the period 332,236 153,999 Profit for the period attributable to:Equity holders of OAO Gazprom 321,491 152,810Minority interest 10,745 1,189 _________ _________ 332,236 153,999___________________________________________________________________________ Sales (net of excise, VAT and customs duties) increased by RR 480,191 million,or 79%, to RR 1,091,424 million in the six months ended 30 June 2006 compared tothe six months ended 30 June 2005. More detailed information on our sales forthe six months ended 30 June 2006 and 2005 is presented in the table below. inmillion RR (unless otherwise stated) in million RR (unless otherwise stated) Six months ended 30 JuneSales of gas 2006 2005 ________________________Europe Net sales (net of excise tax and customs duties) 428,262 287,143 Volumes in bcm 84.9 81.4 Gross average price, RR/mcm (including excise tax and customs duties) 6,944.2 4,876.1 FSU Net sales (net of excise tax, VAT and customs duties) 102,559 45,797 Volumes in bcm 51.1 36.4 Gross average price, RR/mcm (including excise tax, customs duties and net of VAT) 2,312.4 1,490.6 Russian Federation Net sales (net of excise tax and VAT) 191,064 163,016 Volumes in bcm 170.8 162.1 Gross average price, RR/mcm (including excise tax and net of VAT) 1,123.5 1,012.8 Total sales of gas Net sales (net of excise tax, VAT and customs duties) 721,885 495,956 Volumes in bcm 306.8 279.9 Net sales of refined products (net of excise tax, VAT and customs duties) 209,737 67,686Net sales of crude oil and gas condensate (net of excise tax, VAT and customs duties) 95,470 6,422Gas transportation sales (net of VAT) 16,976 12,181Other revenues (net of VAT) 47,356 28,988Total sales (net of excise tax, VAT and _________ ________customs duties) 1,091,424 611,233___________________________________________________________________________ Net sales of natural gas increased by RR 225,929 million, or 46%, to RR 721,885million in the six months ended 30 June 2006 compared to the six months ended 30June 2005. This increase was primarily due to higher European and FSU pricesfor gas as well as higher volumes of gas sold. Net sales of natural gas to Europe increased by RR 141,119 million, or 49%, toRR 428,262 million in the six months ended 30 June 2006 compared to the sixmonths ended 30 June 2005. This was primarily due to higher average prices forgas to European customers and the 4% increase in the volume of gas sold. Net sales of natural gas to FSU countries increased by RR 56,762 million, or124%, to RR 102,559 million in the six months ended 30 June 2006 compared to thesix months ended 30 June 2005. The increase of sales in this segment isexplained by higher average prices and higher sales volumes. Net sales of natural gas in the domestic market increased by RR 28,048 million,or 17%, to RR 191,064 million in the six months ended 30 June 2006 compared tothe six months ended 30 June 2005. This is explained primarily by increasedaverage domestic price for gas established by the Federal Tariff Service, andincreased volumes. In the six months ended 30 June 2006, sales of refinedproducts increased by RR 142,051 million, or 210%, primarily due toconsolidation of Gazprom Neft as well as increased market prices for refinedproducts in the six months ended 30 June 2006 compared to the six months ended30 June 2005. In the six months ended 30 June 2006, net sales of crude oil and gas condensateincreased by RR 89,048 million. The increase of sales in this segment isexplained by the consolidation of Gazprom Neft's results for the six monthsended 30 June 2006. Operating expenses increased by RR 284,247 million, or 71%, to RR 686,425million in the six months ended 30 June 2006 compared to the six months ended 30June 2005 primarily due to the consolidation of Gazprom Neft's results. The increase in operating expenses included higher expenses on purchased oiland gas (RR 98,224 million, including Gazprom Neft - RR 38,571 million), highertaxes other than on income (RR 50,739 million, including Gazprom Neft - RR41,489 million), higher expenses on transit of gas, oil and refined products (RR30,621 million, including Gazprom Neft - RR 22,699 million), higher depreciation(RR 19,121 million, including Gazprom Neft - RR 18,612 million), higher expenseson goods for resale, including refined products (RR 19,929 million, includingGazprom Neft - RR 16,367 million) and higher staff costs (RR 16,608 million). In addition to the appearance of a new type of expense - "purchased oil" - dueto consolidation of Gazprom Neft, the cost of purchased oil and gas increasedon higher purchases of gas from Central Asia. The increase in taxes other thanon income was primarily due to the consolidation of Gazprom Neft and changes intax legislation related to natural resources production tax enacted from 1January 2006. The increase in expenses on transit of gas, oil and refinedproducts was primarily due to the consolidation of Gazprom Neft as well as ageneral increase in gas volumes sold to Europe and FSU customers and the growthof transit tariffs. The increase in the staff costs resulted from the increasein average base salaries and other payments and the increase in the averagenumber of employees. The profit tax increased by RR 57,720 million, or 100%, to RR 115,366 million inthe six months ended 30 June 2006 as compared to the six months ended 30 June2005. Our effective current profit tax rate for the six months ended 30 June2006 was 25.8% compared to 27.2% for the six months ended 30 June 2005. In the six months ended 30 June 2006 our profit for the period attributable toequity holders of OAO Gazprom totaled RR 321,491 million which is RR 168,681million, or 110%, higher compared to the six months ended 30 June 2005. Our net debt balance (defined as the sum of short-term borrowings, currentportion of long-term borrowings, short-term promissory notes payable, long-termborrowings, long-term promissory notes payable and restructured tax liabilities,net of cash and cash equivalents and balances of cash and cash equivalentsrestricted as to withdrawal under the terms of certain borrowings and othercontractual obligations) decreased by RR 126,716 million, or 16%, from RR797,465 million as of 31 December 2005 to RR 670,749 million as of 30 June 2006.This decrease can be explained primarily by net cash repayments of long-termborrowings from increased cash inflow from operating activities and the effectsof foreign exchange rate fluctuations. More detailed information on the IFRS consolidated interim condensed financialinformation for the six months ended 30 June 2006 can be found on OAO Gazpromweb site (www.gazprom.ru). OAO GAZPROM INFORMATION DIVISION ________________________________________________________________________________ contact phone numbers: (495) 719-10-77, 719-49-37, 719-47-36, 719-28-01fax: (495) 719-90-08e-mail: pr@gazprom.ruhttp:// www.gazprom.ru This information is provided by RNS The company news service from the London Stock Exchange