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Kazakhstan’s KazMunaiGas EP ups net profit

Oil&Gas Materials 11 August 2016 12:43 (UTC +04:00)
Kazakh oil company KazMunaiGas Exploration Production increased net profit in H1 2016 to 17.2 billion tenges ($50 million) compared to 2.9 billion tenges ($16 million) in the same period of 2015

Baku, Azerbaijan, Aug. 11

By Elena Kosolapova – Trend:

Kazakh oil company KazMunaiGas Exploration Production increased net profit in H1 2016 to 17.2 billion tenges ($50 million) compared to 2.9 billion tenges ($16 million) in the same period of 2015, the company said Aug. 11.

“The year-on-year increase in net profit is largely due to an increase in revenue from export sales because of an 86-percent increase in the tenge-US dollar exchange rate and switch to a processing scheme starting April 2016, which offset a 31-percent decrease in Brent price,” the company said.

The net profit in 2Q 2016 reached 16.3 billion tenges ($47 million) compared to the net profit of 0.9 billion tenges ($3 million) in 1Q 2016.

KMG EP’s revenue in H1 2016 increased by 30 percent compared to the same period in 2015 to 313 billion tenges ($907 million).

Production expenses grew by 13 percent to 123 billion tenges ($357 million) in H1 2016.

This was due to the higher processing expenses related to the switch to a processing scheme in April 2016, partially offset by a 7-percent reduction in employee benefit expenses.

KMG EP’s capital expenditure in H1 2016 totaled 51 billion tenges ($148 million), 8 percent down compared to the same period in 2015. This primarily was due to a reduction in volumes and costs of production drilling at Ozenmunaigas, including a 15-percent discount obtained from the drilling service contractor.

This was partially offset by an increase in capital expenditure for the construction and modernization of production facilities, production and exploration drilling at Embamunaigas.

The company plans capital expenditures for 2016 at the level of 88 billion tenges ($246 million).

KMG EP is among the top three Kazakh oil producers.

Edited by EA

Follow the author on Twitter: @E_Kosolapova

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