GAZPROM’S FINANCIAL
INFORMATION UNDER INTERNATIONAL FINANCIAL REPORTING STANDARDS (IFRS) FOR THE
SIX MONTHS
ENDED JUNE 30, 2014
Today
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, 2014.
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, 2014 and 2013. All amounts are presented in millions of Russian
Rubles.
June 30, 2014 and 2013. All amounts are presented in millions of Russian Rubles.
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Six months ended
|
June 30,
2014
|
|
2013
|
|||
|
|
|
|
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Sales
|
2,873,932
|
|
2,568,122
|
||
Net
gain from trading activity
|
14,377
|
|
3,764
|
||
Operating expenses
|
(2,248,659)
|
|
(1,718,884)
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||
Operating profit
|
639,650
|
|
853,002
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||
|
|
|
|
||
Finance income
|
165,596
|
|
38,501
|
||
Finance expense
|
(218,540)
|
|
(162,479)
|
||
Share of net income of
associated undertakings and joint ventures
|
47,884
|
|
12,804
|
||
(Losses) gains on disposal of available-for-sale
financial assets
|
_ (26)
|
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_ 16
|
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Profit before profit tax
|
634,564
|
|
741,844
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||
|
|
|
|
||
Current
profit tax expense
|
(124,525)
|
|
(42,992)
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||
Deferred
profit tax expense
|
(44,813)
|
|
(105,447)
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Profit
tax expense
|
(169,338)
|
|
(148,439)
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Profit for the period
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465,226
|
|
593,405
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||
|
|
|
|
||
Other comprehensive
(loss) income:
|
|
|
|
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Items that will not be reclassified to profit or loss:
|
|
|
|
||
Remeasurements of post-employment benefit
obligations
|
(6,463)
|
|
75,623
|
||
Total items that will
not be reclassified to profit or loss
|
(6,463)
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|
75,623
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||
|
|
|
|
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Items that will be reclassified
to profit or loss:
|
|
|
|
||
Losses arising from change in fair value of available-for-sale
financial assets, net of tax
|
(8,850)
|
|
(2,588)
|
||
Share of other comprehensive (loss) income of associated undertakings and joint
ventures
|
(3,403)
|
|
4,138
|
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Translation differences
|
13,667
|
|
49,247
|
||
Losses from cash flow hedges,
net of tax
|
(6,971)
|
|
(3,981)
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||
Total items that will be reclassified to profit or loss
|
(5,557)
|
|
46,816
|
||
Other comprehensive (loss) income for the period, net of tax
|
(12,020)
|
|
122,439
|
||
Total comprehensive
income for the period
|
453,206
|
|
715,844
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||
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|
|
|
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Profit attributable to:
|
|
|
|
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Owners of OAO Gazprom
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450,578
|
|
582,683
|
||
Non-controlling interest
|
__14,648
|
|
__10,722
|
||
|
465,226
|
|
593,405
|
||
|
|
|
|
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Total comprehensive income
attributable to:
|
|
|
|
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Owners of OAO Gazprom
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438,470
|
|
702,329
|
||
Non-controlling interest
|
14,736
|
|
_ 13,515
|
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|
453,206
|
|
715,844
|
||
Sales
(net of excise tax, VAT and customs duties) increased by RUB 305,810 million,
or 12%, to RUB 2,873,932 million in the six months ended June 30, 2014 compared
to the six months ended June 30, 2013. More detailed information on
our sales for the six months ended June 30, 2014 and 2013 is presented in the
table below.
in millions of RUB (unless otherwise stated)
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Six months ended
June 30,
|
||
|
2014
|
2013
|
|
Sales of gas
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|
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Europe and
other countries
Net sales (net of customs
duties)
|
883,196
|
824,419
|
|
Volumes in bcm
|
86.0
|
85.5
|
|
Average price, RUB/mcm (including customs duties)
|
12,843.4
|
11,953.6
|
|
Retroactive gas price
adjustments
|
-
|
73,430
|
FSU (Former
Soviet Union)
|
|
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Net sales (net of customs
duties)
|
262,947
|
179,555
|
|
Volumes in bcm
|
30.7
|
27.4
|
|
Average price, RUB/mcm (including customs duties)
|
10,445.7
|
7,897.6
|
Russian
Federation
|
|
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Net sales (net of VAT)
|
440,528
|
411,013
|
|
Volumes in bcm
|
125.4
|
133.6
|
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Average price, RUB/mcm (net of VAT)
|
3,513.5
|
3,075.5
|
Total sales
of gas
|
|
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Net
sales (net of VAT and customs duties)
|
1,586,671
|
1,488,417
|
|
Volumes in bcm
|
242.1
|
246.5
|
|
|
|
|
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Net sales of refined products (net of excise tax,
VAT and customs duties)
|
793,632
|
639,643
|
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Net electric and heat energy sales (net of VAT)
|
218,683
|
179,566
|
|
Net sales of crude oil and gas condensate (net of
VAT and customs duties)
|
104,798
|
99,789
|
|
Net gas transportation sales (net of VAT)
|
82,721
|
80,495
|
|
Other revenues (net of VAT)
|
____87,427
|
____80,212
|
|
Total sales (net of
excise tax, VAT and customs duties)
|
2,873,932
|
2,568,122
|
|
|
|
|
|
Net sales of gas increased
by RUB 98,254 million, or 7%, to RUB 1,586,671 million
in the six months ended June 30, 2014 compared to the six months ended June 30,
2013.
For the six months ended
June 30, 2014 net sales of gas to Europe and other countries increased by
RUB 58,777 million, or 7%, to RUB 883,196 million
compared to the six months
ended June 30, 2013. This change was primarily due to an increase in average prices in RUB terms (including customs duties) by 7%.
ended June 30, 2013. This change was primarily due to an increase in average prices in RUB terms (including customs duties) by 7%.
Retroactive gas price
adjustments were recognized in the consolidated interim
condensed financial information for the six
months ended June 30, 2013 as an increase in sales in the amount of RUB 73,430 million
reflecting a decrease in previously accrued liability.
Net sales of gas to FSU
countries increased by RUB 83,392 million, or 46%, to RUB 262,947 million
in the six months ended June 30, 2014 compared to the six months ended June 30,
2013.
The change was due to an increase in average prices in RUB terms (including customs duties) by 32% and an increase in volumes of gas sold by 12%, or 3.3 bcm.
The change was due to an increase in average prices in RUB terms (including customs duties) by 32% and an increase in volumes of gas sold by 12%, or 3.3 bcm.
Net sales of gas in the
domestic market increased by RUB 29,515 million, or 7%, to RUB 440,528 million
in the six months ended June 30, 2014 compared to the six months ended June 30, 2013. This is primarily explained by the increase in
the average domestic price for gas by 14%, which was partially compensated by
the decrease in volumes of gas sold by 6%, or 8.2 bcm.
Net sales of refined
products increased by RUB 153,989 million, or 24%, to RUB 793,632 million
in the six months ended June 30, 2014 compared to the six months ended June 30,
2013 due to an increase in volumes sold by Gazprom neft Group to customers in the
Russian Federation as well as by an increase in prices. The increase in net
sales of refined products was strengthen by an increase in net sales of crude
oil and gas condensate by RUB 5,009 million, or 5%.
Net electric and heat
energy sales increased by RUB 39,117 million, or 22%, to RUB 218,683 million
in the six months ended June 30, 2014 compared to the six months ended June 30,
2013.
The increase was mainly driven by inclusion of OAO Moscow Integrated Power Company (OAO MIPC) in the consolidated financial statements from September 2013.
The increase was mainly driven by inclusion of OAO Moscow Integrated Power Company (OAO MIPC) in the consolidated financial statements from September 2013.
Operating expenses
increased by RUB 529,775 million, or 31%, to RUB 2,248,659 million
in the six months ended June 30, 2014 compared to the six months ended June 30,
2013.
The major factor leading
to an increase in operating expenses was accrual of provision for doubtful
trade accounts receivable in the amount of RUB 215,832 million in the six
months ended June 30, 2014, which was mostly related to doubtful trade accounts
receivable of NAK Naftogaz Ukraine.
In the six
months ended June 30, 2014 profit for the period attributable to owners of
OAO Gazprom totaled RUB 450,578 million which is RUB 132,105 million, or 23%, lower compared to the six months ended June
30, 2013.
Net
debt balance (defined as the sum of short-term borrowings, current portion of
long-term borrowings, short-term promissory notes payable, long-term
borrowings, long-term promissory notes payable, 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 218,251 million, or 20%, from RUB 1,112,798 million as of December 31, 2013 to
RUB 894,547 million as of June 30, 2014. This decrease resulted from the increase in cash and cash equivalents, which was partially offset by appreciation of U.S. dollar and Euro against Russian Ruble.
to withdrawal under the terms of certain borrowings and other contractual obligations) decreased
by RUB 218,251 million, or 20%, from RUB 1,112,798 million as of December 31, 2013 to
RUB 894,547 million as of June 30, 2014. This decrease resulted from the increase in cash and cash equivalents, which was partially offset by appreciation of U.S. dollar and Euro against Russian Ruble.
More detailed information on the IFRS consolidated
interim condensed financial information for the six months ended June 30, 2014 can
be found on OAO Gazprom web site (www.gazprom.ru).
INFORMATION DIRECTORATE, OAO
GAZPROM