Baku, Azerbaijan, Aug. 13
By Elena Kosolapova - Trend:
Kazakh KazMunaiGas Exploration Production JSC (KMG EP) has considerably decreased profit for the first 6 months of 2015, said the message of the company Aug.13.
Net profit in the first six months of 2015 was 2.9 billion tenge ($16 million) compared with 210 billion tenge ($1.193 million) in the same period of 2014.
"A decline in net profit is largely due to lower revenue and lower foreign exchange gain," said the message.
The KMG EP's revenue in the first six months of 2015 was 241 billion tenge ($1.302 million), which is 48 percent lower compared with the same period of 2014.
This is due to a 47 percent decline in Brent price and a 52 percent decline in average domestic realized price from 48,000 tenge per metric ton in the first half of 2014 to 23,000 tenge per metric ton in the first half of 2015. Domestic realized price in the first half of 2015 was 22,400 tenge per metric ton at the Atyrau Refinery and 30,000 tenge per metric ton at the Pavlodar Refinery.
Starting from July 1, 2015, domestic prices increased to 24,000 tenge per metric ton at the Atyrau Refinery and to 32,000 tenge per metric ton at the Pavlodar Refinery. But these prices have yet to be approved by independent directors.
Capital expenditure in the first six months of 2015 was 56 billion tenge ($301 million), which is 4 percent less compared with the same period of 2014 mainly due to lower investments in maintenance capex partly offset by increase in drilling activity. In the first six months of 2015, 162 wells were drilled at Ozenmunaigas JSC and Embamunaigas JSC compared with 154 wells in the first half of 2014.
Currently management of the company is at the final stage of development of optimization program. It will cover both operational and financial targets to be achieved in the short-term period.
Production expenses of the company in the first six months of 2015 were 109 billion tenge ($589 million), 23 percent higher than in the same period of 2014, mainly due to higher employee benefits of production personnel.
Cash flow from operating activities in the first six months of 2015 was 0.1 billion tenge ($1 million) compared with 149 billion tenge ($844 million) in the same period of 2014 mainly as a result of lower revenue in the first half of 2015.
KMG EP is among the top three Kazakh oil producers on the results of 2014.
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