RELEASE

Gazprom reports its consolidated interim condensed financial results under International Financial Reporting Standards (IFRS) for the six months ended 30 June 2009

November 9, 2009, 10:00

On 9 November 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 six months ended 30 June 2009.

The table below presents the unaudited consolidated interim condensed statement of comprehensive income prepared in accordance with IFRS for the six months ended 30 June 2009 and 2008. All amounts are presented in millions of Russian Roubles.

 
  Six months ended 30 June
  2009 2008
Sales (net of excise tax, VAT and customs duties) 1,639,698 1,755,113
Operating expenses (1,207,761) (1,038,493)
Operating profit 431,937 716,620
Purchase of non-controlling interest in OAO Gazprom neft 13,865
Gain from change in fair value of call option 28,375
Finance income 240,415 85,605
Finance expenses (317,073) (71,925)
Share of net income of associated undertakings and jointly controlled entities 15,790 25,392
Gains on disposal of available-for-sale financial assets 2,839 11,476
Profit before profit tax 387,773 795,543
Current profit tax expense (88,393) (180,530)
Deferred profit tax 6,380 (5,660)
Profit tax expense (82,013) (186,190)
Profit for the period 305,760 609,353
Other comprehensive income    
Gains (losses) arising from change in fair value of available-for-sale financial assets, net of tax 12,468 (68,372)
Share of other comprehensive income of associated undertakings and jointly controlled entities 3,960
Translation differences 5,926 3,320
Revaluation of equity interest 9,911
Other comprehensive income (loss) for the period, net of tax 32,265 (65,052)
Total comprehensive income for the period 338,025 544,301
Profit attributable to:    
owners of OAO Gazprom 296,243 573,757
non-controlling interest 9,517 35,596
  305,760 609,353
Total comprehensive income attributable to:    
owners of OAO Gazprom 330,396 509,619
non-controlling interest 7,629 34,682
  338,025 544,301

Sales (net of excise tax, VAT and customs duties) decreased by RR 115,415 million, or 7%, to RR 1,639,698 million in the six months period ended June 30, 2009 compared to the same period of the prior year. More detailed information on our sales for the six months ended 30 June 2009 and 2008 is presented in the table below.

 
in millions of RR (unless otherwise stated) Six months ended 30 June
  2009 2008
Sales of gas    
Europe and other countries    
Net sales (net of excise tax and customs duties) 698,206 661,554
Volumes in bcm 76.2 99.7
Average price, RR/mcm (including excise tax and customs duties) 10,946.7 8,762.4
FSU    
Net sales (net of excise tax, VAT and customs duties) 161,284 163,637
Volumes in bcm 21.1 49.5
Average price, RR/mcm (including excise tax, customs duties and net of VAT) 8,103.6 3,578.2
Russia    
Net sales (net of excise tax and VAT) 248,215 264,273
Volumes in bcm 142.8 159.9
Average price, RR/mcm (including excise tax and net of VAT) 1,737.8 1,652.7
Total sales of gas    
Net sales (net of excise tax, VAT and customs duties) 1,107,705 1,089,464
Volumes in bcm 240.1 309.1
     
Net sales of refined products (net of excise tax, VAT and customs duties) 222,631 365,241
Net sales of crude oil and gas condensate (net of excise tax, VAT and customs duties) 79,285 134,616
Net sales of electric and heat energy (net of VAT) 145,589 70,906
Gas transportation sales (net of VAT) 26,797 31,048
Other revenues (net of VAT) 57,691 63,838
Total sales (net of excise tax, VAT and customs duties) 1,639,698 1,755,113

Net sales of gas increased by RR 18,241 million, or 2%, to RR 1,107,705 million in the six months ended 30 June 2009 compared to the six months ended 30 June 2008. This increase was primarily due to higher average realized gas prices in RR terms in all geographical segments.

For the six months ended 30 June 2009 net sales of gas to Europe and other countries increased by RR 36,652 million, or 6%, to RR 698,206 million compared to the six months ended 30 June 2008. This mainly results from the increase of average realized prices in RR terms (including excise tax and customs duties) by 25% which was compensated by the decrease of the volume of sold gas by 24%, or 23.5 bcm. In addition the increase in net sales of gas to this geographical segment is achieved mainly by the increase in prices during the first quarter of 2009.

Net sales of gas to FSU countries decreased by RR 2,353 million, or 1%, to RR 161,284 million in the six months ended 30 June 2009 compared to the six months ended 30 June 2008. The decrease of sales in this segment is explained by the decrease of the volume of sold gas by 57%, or 28.4 bcm, which was compensated by higher average realized prices.

Net sales of gas in the domestic market decreased by RR 16,058 million, or 6%, to RR 248,215 million in the six months ended 30 June 2009 compared to the six months ended 30 June 2008. This is explained primarily by the decrease of the volume of sold gas by 11%, or 17.1 bcm, which was partially 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 142,610 million, or 39%, in the six months ended 30 June 2009. The decrease was primarily due to the deconsolidation of the SIBUR Group and the decline in prices for refined products.

In the six months ended 30 June 2009 net sales of crude oil and gas condensate decreased by RR 55,331 million, or 41%. 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 47,586 million, or 40%, to RR 72,495 million in the six months ended 30 June 2009 compared to the six months ended 30 June 2008.

Net sales of electric and heat energy increased by RR 74,683 million, or 105%, in the six months ended 30 June 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 OGK-2 and ОАО OGK-6 (starting from the second half of 2008).

Operating expenses increased by RR 169,268 million, or 16%, to RR 1,207,761 million in the six months ended 30 June 2009 compared to the six months ended 30 June 2008.

Major item whose growth resulted in the increase of the total amount of operating expenses is purchased oil and gas (RR 190,093 million). The cost of purchased gas increased by RR 213,088 million, or 105%, and the cost of purchased oil decreased by RR 22,995 million, or 28%. 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 28,640 million), staff costs (RR 7,955 million), other (RR 21,833 million).

In the six months ended 30 June 2009 our profit for the period attributable to owners of OAO Gazprom totaled RR 296,243 million which is RR 277,514 million, or 48%, lower compared to the six months ended 30 June 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 316,446 million, or 31%, from RR 1,018,346 million as of 31 December 2008 to RR 1,334,792 million as of 30 June 2009. This can be explained primarily by the increase in long-term borrowings and the revaluation of borrowings denominated in foreign currency.

More detailed information on the IFRS consolidated interim condensed financial information for the six months ended 30 June 2009.

 

All news for November 2009