Second Quarter 2018 Operational and Financial Results
Operating Expenses (RR million and % of Total Revenues (TR))
2Q17 % of TR
32,567 25.2%
11,531 9.0%
44,098 34.2%
8,572 6.7%
2Q18
% of TR
34,554 17.6%
14,871 7.6%
49,425 25.2%
8,655 4.4%
Transportation expenses
37,794
1Q18 % of TR
21.1%
2Q18
34,554
% of TR
17.6%
Taxes other than income tax
13,422
7.5%
14,871 7.6%
Non-controllable expenses
51,216
28.6%
49,425 25.2%
Depreciation and amortization
8,097 4.5%
8,655 4.4%
5,084
3.9%
5,826 3.0%
Materials, services & other
5,563 3.1%
5,826 3.0%
3,911
3.0%
5,079 2.6%
General and administrative
4,593 2.6%
5,079 2.6%
504
0.4%
2,004 1.0%
n/a
89
n/a
Exploration expenses
Net impairment expenses
(reversals)
1,709
1.0%
2,004 1.0%
-4 n/a
89
n/a
874
63,043
0.7%
48.9%
943
72,021
0.5%
36.8%
Change in natural gas, liquids
and WIP
-1,952 n/a
30,990 24.1%
94,033 73.0%
63,585 32.5%
135,606 69.3%
Subtotal operating expenses
Purchases of natural gas and
liquid hydrocarbons
Total operating expenses
69,222 38.5%
943
72,021
0.5%
36.8%
61,815 34.5%
131,037 73.0%
63,585 32.5%
135,606 69.3%
Our total operating expenses increased YoY by 44.2% mainly due to an increase in volumes of natural gas purchased from our joint
ventures, in particular, with the commencement of LNG production at Yamal LNG at the end of 2017, and an increase in the average
purchase prices for hydrocarbons.
NOVATEK
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