1Q2014 IFRS Consolidated Financial Results. September 11, 2014

Transcription

1 1Q214 IFRS Consolidated Financial Results September 11, 214

2 Andrey Kruglov Deputy Chairman of Gazprom Management Committee Head of the Department for Finance and Economics 1

3 Summary of Financial Results 1Q214 vs. 1Q213 Gazprom Group results 1Q 214 YoY Total net sales 1,559 bln RR 7% Adj. EBITDA 591 bln RR -6% Net Profit (1) 223 bln RR -41% Operating cash flow 688 bln RR 33% Free cash flow 29 bln RR 153% Net debt 97 bln RR -13% (2) Net debt/adj.ebitda LTM.5x 1. Profit for the period attributed to owners of OAO Gazprom 2. Compared to net debt as of December 31, Q214 IFRS Consolidated Financial Results

4 Hydrocarbon Production, Electricity and Heat Generation Natural Gas, bcm Gas Condensate, mln ton Crude Oil, mln ton 2-4 % 6, + 3 % 15, + 5 % 15-4 % 4, + 3 % 1, - 1 % , , Q213 2Q213 3Q213 4Q213 1Q214, 1Q213 2Q213 3Q213 4Q213 1Q214, 1Q213 2Q213 3Q213 4Q213 1Q214 Electricity generation, bn kwh Heat generation, mln Gcal % % % % Q213 2Q213 3Q213 4Q213 1Q Q213 2Q213 3Q213 4Q213 1Q214 Including Russian generating companies: Mosenergo, OGK-2, TGK-1 Calculations may diverge due to rounding. 3 1Q214 IFRS Consolidated Financial Results

5 Russian Natural Gas Balance Bcm 1Q213 1Q214 Natural gas sources Domestic gas production Other sources including Central Asian and Azerbaijani gas Gas withdrawn from underground storage in Russia, Latvia and Europe Decrease in the amount of gas within the gas transportation system Natural gas distribution Domestic consumption including needs of the gas transportation system and underground storages Gas pumped into underground storages.1.2 Gas for LNG production Foreign supplies FSU supplies (including The Republic of Ossetia and Georgia) Increase in the amount of gas within the gas transportation system Source: Company operating data 1. including Baltic States 4 1Q214 IFRS Consolidated Financial Results

6 Gas Sales Gas Sales in Russia Gas Sales in Europe and Other Countries (2) Gas Sales in FSU Countries RR bln bcm Net sales (1) % RR bln + 13% RR bln + 4% Q213 2Q213 3Q213 4Q213 1Q214 Volumes and prices Net sales (3,4) 1Q213 2Q213 3Q213 4Q213 1Q214 Calculations may diverge due to rounding. 1. Net of value added tax (VAT); 2. Other countries include LNG sales to Japan, Korea and China; 3. VAT is not charged on sales to FSU, Europe and other countries; 4. Net of custom duties Net sales (3,4) Q213 2Q213 3Q213 4Q213 1Q % + 3% 3-1% 6 1Q213 2Q213 3Q213 4Q213 1Q214 RR/mcm bcm 3 Volumes and prices Q213 2Q213 3Q213 4Q213 1Q214 US$/mcm 2 1 bcm 3 18 Volumes and prices Q213 2Q213 3Q213 4Q213 1Q214 US$/mcm Q214 IFRS Consolidated Financial Results

7 Oil and Energy businesses 1Q213 Net Sales (1) 1Q214 68% 63% Crude oil and gas condensate; refined products Gas business and other revenues Electric and heat energy 25% 7% 28% 9% Crude Oil and Gas Condensate; Refined Products RR bln Q213 2Q213 3Q213 4Q213 1Q Electric and Heat Energy + 16% + 26% RR bln Q213 2Q213 3Q213 4Q213 1Q214 Calculations may diverge due to rounding. 1. Net of value added tax (VAT) 6 1Q214 IFRS Consolidated Financial Results

8 1Q214 vs. 1Q213 Changes of Operating Expenses Items Main drivers of change +/- RR bln (+/- %) Due to an increase in the tax rate for gas from RR 582 in the 1 st quarter of 213 to RR 7 per thousand cubic meters and to an increase in the tax on oil extraction, the latter resulting mainly from growth in the tax rate from RR 47 to RR 493 per ton and increase of US dollar exchange rate Relates to the decrease in purchased gas prices for the gas purchased from third parties in Russia and abroad Relates to average salary indexation and increase in average number of personnel Mainly relates to the increase in transportation volumes through the Nord Stream gas pipeline Taxes other than on income Purchased gas and oil Staff costs Transit of gas, oil and refined products - 7 (-4%) + 9 (+8%) + 9 (+1%) + 23 (+13%) Driven by accrual of provision for doubtful trade accounts receivable of NAK Naftogaz Ukraine Charge for impairment provisions + 61 (+461%) Due to a decrease in the balances of finished goods as of March 31, 214 as compared with the balances as of December 31, 213 Changes in inventories of finished goods, work in progress and other effects + 15 (+54%) The rest of OpEx + 29 (+9%) Total OpEx: + RR 14 bln (+15%) The rest of OpEx include: Depreciation; Repairs and maintenance; Electricity and heating expenses; Transportation services; Rental expenses; Insurance expenses; Social expenses; Derivatives losses; Research and development expenses; Processing services; Heat transmission; Cost of goods for resale, including refined products, Materials, Exchange rate differences on operating items, Other OpEx. 7 1Q214 IFRS Consolidated Financial Results

9 Positive Effect of Changes in Working Capital in 1Q214 Decrease in accounts payable RR (93) bn Increase in accounts receivable RR (29) bn RR 12 bn 1Q214 Total Changes in Working Capital Changes in taxes payable Decrease in gas inventories Decrease in cash in deposits RR 112 bn RR 67 bn RR 3 bn Positive impact on the company s operating cash flow during the period Other effects RR 15 bn 8 1Q214 IFRS Consolidated Financial Results

10 Capital Expenditures RR bln 3 Gazprom Group s CapEx (1) & self funding (2) position 173% % % 129% % 19% , , , Q213 1Q214 Transport Production of natural gas Production of crude oil and gas condensate Refining Electric and heat energy Distribution Gas storage Other Self funding (OpCF/Cash CapEx) 1. CapEx breakdown as provided in Management Discussion and Analysis of Financial Consolidation and Results of Operations 2. Self funding = Net cash provided by operating activities / CapEx as provided in IFRS Consolidated Financial Statements 9 1Q214 IFRS Consolidated Financial Results

11 Debt Overview Total Debt (1), RR bln 1,927 1,82 1,54 1, ,71 1, Max 1.6x Credit metrics % Q214 Net Debt Cash&Cash equivalents and certain restricted cash Cost of debt financing (2) Q214 Total Debt / Adj. EBITDA Net Debt / Adj. EBITDA Debt maturity profile (2) 21% 26% 33% 35% % 33% 36% 37% 17% 19% 13% 14% 24% 22% 18% 14% Q214 Less than 1 year 1-2 years 2-5 years More than 5 years 1. Total debt: short-term borrowings and current portion of long-term borrowings, short-term promissory notes payable, long-term borrowings, long-term promissory notes payable and restructured tax liabilities 2. Excluding promissory notes 6.2% 5.5% 3 2.8% Q214 Weighted average fixed interest rate Weighted average floating interest rate Weighted average interest rate 1Q214 IFRS Consolidated Financial Results

12 Department for Finance & Economy Corporate finance directorate Fax: (7) (495) Contacts for Investors and Analysts Andrey BARANOV Deputy Head of Corporate finance directorate Phone: (7) (495)