Baku, Azerbaijan, Apr. 28
By Elena Kosolapova – Trend:
Kazakh KazMunaiGas Exploration Production company’s (KMG EP) capital expenditure totaled 18 billion tenges ($55 million) in 1Q17, decreasing by 37 percent as compared to the same period of 2016, the company said in a message Apr. 28.
This was primarily due to a reduction in volumes of production drilling at JSC OzenMunaiGas (OMG) and JCS EmbaMunaiGas (EMG) and decrease in capital expenditure directed towards the construction and modernization of production facilities at EMG.
As announced, the company plans capital expenditures for 2017 at the level of 133 billion tenges $369 million), as compared to 115 billion tenges ($337 million) for 2016.
Net profit for the first quarter of 2017 was 2.3 billion tenges ($7 million) as compared to 0.9 billion tenges ($3 million) in the same period of 2016.
The increase in net profit was due to an increase in revenue as a result of a 58 percent increase in the Brent price, switch to the processing scheme starting in April 2016 and increase in the share of results of associate and joint ventures, which was partially offset by an increase of production expenses, taxes other than on income and foreign exchange loss.
KMG EP’s revenue in the first quarter of 2017 was 214 billion tenges ($663 million), increasing by 76 percent, as compared to the same period in 2016. This increase is the result of a 58-percent increase in the Brent price, switch to the processing scheme starting in April 2016, which was partially offset by 9 percent decrease in the average Tenge – US dollar exchange rate.
Production expenses in the first quarter of 2017 were 70 billion tenges ($217 million), increasing by 28 percent, as compared to the same period of 2016. This was mainly due to additional expenses related to the new processing scheme starting in April 2016 in the amount of 13 billion tenges ($40 million), as well as an 11-percent increase in employee benefit expenses.
KMG EP is among the top three Kazakh oil producers based on the 2016 results.
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