OJSC Severneftegazprom Published Annual Financial Statements for 2016

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OJSC "Severneftegazprom” (hereinafter - Company) published annual financial statements for 2016 prepared in accordance with the International Financial Reporting Standards (hereinafter - IFRS) and an independent Audit report in Russian and English languages.

Company’s annual net income for 2016 in accordance with IFRS amounted 16 336 mln. rubles, increased by 3 682 mln. rubles or 29% in comparison with 2015.

The main factors which influenced the increase are:

- Growth of revenue by 902 mln. rubles or 2% in comparison with 2015 for the gas sales price increased because of the special gas sales formula used in accordance with Shareholders Agreement and gas sales contracts. The annual revenue of 2016 amounted to 50 365 mln. rub.;

- Strengthening of the national currency against the US dollar and EURO. As a result the income from foreign exchange gains of 2016 amounted to 526 mln. rub.

In August 2016 Company paid off the loan ahead of the schedule on Project Financing Agreement with Consortium of foreign banks and JSC GPB bank in the sum of nearly 200 mln. EURO which is totally equal to 1.1 bln. EURO in 2011 estimation.

The net assets of the Company as of 31.12.2016 increased by 4% in comparison with the value as of 31.12.2015 and amounted to RR 63,494 mln. rub.

In accordance with the schedule of the exploration and development of the Yuzhno-Russkoye oil and gas field in 2016 the building of production facilities which support the annual level of production in the amount of 25 bln. m3 to meet the business needs of natural gas realization was completed. The cost of PPE put into operation in 2016 were 1 748 mln. rub.

Full version of annual IFRS Financial Statements 2016 is available at:

 2019 OJSC Severneftegazprom