Novatek · RUS:NVTK
Novatek — Shareholder Meeting (April 2010)
26 slides from Novatek's shareholder meeting presentation, Apr 28, 2010
Slide 1: Annual General Meeting of Shareholders
ANNUAL GENERAL MEETING OF SHAREHOLDERS 28 April 2010
Slide 2: Disclaimer – Forward Looking Statement
Disclaimer – Forward Looking Statement Matters discussed in this presentation may constitute forward-looking statements. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which
Slide 3: 2009 Results of Operations
2009 RESULTS OF OPERATIONS Leonid Mikhelson Chairman of the Management Board, Member of the Board
Slide 4: Main Operational Highlights – 2009
Main Operational Highlights – 2009 Gross Production: – Natural gas – 32.78 bcm – Liquid hydrocarbons – 3.05 mmt – Total production – 240 mmboe – NOVATEK’s share of Russian natural gas production – ~ 6% of total Russian natural gas production – ~ 10% of natural gas deliveries to the domestic market
Slide 5: A Proven Strategy to Build Reserves
A Proven Strategy to Build Reserves Proved Reserves (SEC), mmboe* Compound Annual Growth Rate: 13% 6 853 6 853 6 853 7 000 Sterkhovoye Termokarstovoye 6 300 Khancheyskoye 5 600 South Tambeyskoye 4 963 4 664 4 678 4 900 4 573 4 149 4 178 4 200 3 964 3 858 East-Tarkosalinskoye 3 500 2 800 2 353 2 100
Slide 6: Growth Through the Drill-Bit
Growth Through the Drill-Bit 2009 Reserve Additions 2 250 2,127 900% 2 000 898% 800% 1 750 700% Replacement rate, % Additions, mm boe 1 500 600% 62% 1 250 500% 1 000 400% 800 750 - 300% 338% 500 200% 38% 250 100% - 0% F&D additions F&D, % RR additions RR, % Organic Acquisition Replacement rate (rhs)
Slide 7: Historical Production Results
Historical Production Results Natural gas production, bcm Liquids production mmt 35 32.8 3,5 30.9 30 28.7 28.5 3.0 3,0 25.2 2.6 25 2.5 2.5 20.9 2,5 2.2 2.1 20 2,0 15 1,5 10 1,0 5 0,5 0 0,0 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 Yurkharovskoye Field East-Tarkosalinskoye Field Yur
Slide 8: Increasing Gas Production
Increasing Gas Production Average daily gas production, mmcm/day Launch of the second stage of the second phase of development at the Yurkharovskoye field 110 100 90 80 70 60 50 40 30 20 10 0 Jan Sep Apr Sep Apr Apr Sep Apr Sep Apr Sep Jan Feb Mar Jun Jan May Aug Feb Mar Jun Feb Mar Jun Jan Jan May
Slide 9: Increasing Gas Condensate Production
Increasing Gas Condensate Production “Wet” gas vs. “Dry” gas production In order to optimize sales revenues and gas 100% condensate production volumes we have: 26% Decreased production from the cenomanian 80% 45% 47% 42% 39% layers (“dry” gas) of the East-Tarkosalinskoye 60% and Khancheyskoye fiel
Slide 10: Historical Production Results
Historical Production Results Total production by field, mmboe Total production gas & liquids, mmboe 250 240 250 240 223 223 208 207 208 207 200 186 200 186 159 159 150 150 100 100 50 50 - 0 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 Yurkharovskoye Field East-Tarkosalinskoye Field N
Slide 11: Production Capacity at the Yurkharovskoye Field
Production Capacity at the Yurkharovskoye Field Launch of second stage of second phase of the Yurkharovskoye field development in 4Q 2009 Two technical lines with production capacity of 20 mmcm per day: – Low temperature separation unit; – Total rated capacity – over 7 bcm per annum of natural gas
Slide 12: Investing in Processing Capacity
Investing in Processing Capacity In 2009, we launched an LPG “scrubbing” unit at the Purovsky Plant with a capacity of 1.3 million tons per annum. It is the first of its kind in Russia and increases the quality of LPG produced at the plant to the highest European Standards. 2009 Purovsky Plant Outpu
Slide 13: Sales Volumes
Sales Volumes Natural gas sales volumes, bcm Liquids sales volumes, mt 3,128 2,630 32.05 33.27 32.94 2,404 24 % 32% 23% 53% 53% 23% 69% 60% 47% 68% 63% 47% 11% 10% 6% 2007 2008 2009 2007 2008 2009 End-customers Traders LPG Stable gas condensate Oil products Crude oil 2009 natural gas sales volumes
Slide 14: Social and Environmental Responsibility
Social and Environmental Responsibility NOVATEK’s production and processing subsidiaries successfully completed a recertification audit of the Company’s environmental management system in compliance with ISO 1400:2004 standards. In 2009, NOVATEK became the first Russian company to take part in t
Slide 15: Questions and Answers
Questions and Answers mm Sane NOVATEK is
Slide 16: 2009 IFRS Results
2009 IFRS RESULTS Mark Gyetvay Chief Financial Officer and Member of the Board
Slide 17: Summary Highlights - 2009
Summary Highlights - 2009 Increase in revenues and earnings driven by higher natural gas prices and liquids sales volumes – Natural gas sales increased by 17.5% – Liquids sales increased by 9.4% Cash flow from operations increased by 15.7% to RR 36,454 million from RR 31,514 million Capital ex
Slide 18: Another Record Year (RR million)
Another Record Year (RR million) 2009 2008 +/(-) +/(-)% Oil and gas sales 86,903 76,076 10,827 14.2% Total revenues 89,954 79,272 10,682 13.5% Operating expenses (56,130) (46,916) (9,214) 19.6% EBITDA (1) 39,566 36,702 2,864 7.8% EBITDA margin 44.0% 46.3% - - Effective income tax rate (2) 20.7% 19.7
Slide 19: Operating Expenses (RR million and % of Total Revenues)
Operating Expenses (RR million and % of Total Revenues (TR)) 2009 % of TR 2008 % of TR Transportation expenses 29,026 32.3% 18,153 22.9% Taxes other than income tax 8,042 8.9% 7,186 9.1% Non-controllable expenses 37,068 41.2% 25,339 32.0% Materials, services & other 6,259 7.0% 6,332 8.0% Depreciatio
Slide 20: Condensed Balance Sheet (RR million)
Condensed Balance Sheet (RR million) 31 December 2009 31 December 2008 +/(-) +/(-)% Total current assets 26,867 25,428 1,439 5.7% Incl. Cash and cash equivalents 10,532 10,992 (460) -4.2% Total non-current assets 166,264 113,578 52,686 46.4% Incl. Net PP&E 161,448 108,714 52,734 48.5% Assets classif
Slide 21: Total Debt Maturity Profile
Total Debt Maturity Profile 13,827 14,000 12,150 12,000 11,726 10,000 In January 2010, the Group 8,000 repaid RR 3,394 million (USD 114 million) of our 6,000 Syndicated term loan facility 4,000 as per maturity schedule 2,000 0 0 2010 2011 2012 Current portion of long-term debt Long-term debt Curre
Slide 22: Questions and Answers
Questions and Answers mm Sane NOVATEK »
Slide 23: Annual General Meeting of Shareholders
ANNUAL GENERAL MEETING OF SHAREHOLDERS 28 April 2010
Slide 24: Dividend Recommendation
Dividend Recommendation mm Sane NOVATEK a
Slide 25: Dividend Recommendation
Dividend Recommendation Net Profit Profit growth 2009 Dividend as Millions of roubles 2008 2009 + /-, % % of 2009 profit1 NOVATEK consolidated IFRS net profit 22,899 26,043 13.7% 32% NOVATEK net profit according to Russian accounting standards 14,456 19,487 34.8% 43% Note 1: NOVATEK dividend policy
Slide 26: Annual General Meeting of Shareholders
ANNUAL GENERAL MEETING OF SHAREHOLDERS 28 April 2010