BAKU, Azerbaijan, Mar. 15
By Nargiz Sadikhova - Trend:
Revenue of Kazakhstan’s KazMunayGas National Company (KMG) amounted to 4.5 trillion tenge ($11.01 billion) in 2020, down by 33.6 percent as compared to 2019, Trend reports citing the company.
“The negative impact on revenue dynamics was mainly attributable to decrease in average Dated Brent oil price by 34.8 percent year-on-year, lower volumes of oil sales reflecting production restrictions at certain fields under the OPEC+ agreement, as well as lower volumes of oil trading and sales of petroleum products at KMG International (KMG I). A decrease in revenues was partially offset by the weakening of the average exchange rate of tenge vs. the US dollar by 8 percent,” the company said.
KMG noted that in 2020, share in the profit of joint ventures and associates decreased by 38.3 percent year-on-year to 511 billion tenge ($1.2 billion), mainly due to lower profits of Tengizchevroil LLP (TCO), JSC Mangistaumunaigas (MMG), and KMG Kashagan B.V (Kashagan).
The share in the net profit of TCO and MMG in the reporting period decreased by 58.2 percent and 79.6 percent to 173 billion tenge ($420 million) and 17 billion tenge ($41 million), respectively, reflecting lower average oil prices and lower production volumes.
The loss from a share in the profit of Kashagan was at 7 billion tenge ($17 million) in 2020 due to lower oil prices. Meanwhile, Kashagan’s free cash flow was positive at $463 million.
In 2020, Ural Group Limited, PetroKazakhstan Inc., and Valsera Holdings B.V. also incurred accounting net losses, amounting to 10 billion tenge ($25 million), 9 billion tenge ($21 million), and 6 billion tenge ($15 million) attributable to KMG’s share, respectively.
Cost of purchased oil, gas, petroleum products, and other materials decreased by 41.8 percent year-on-year to 2.2 trillion tenge ($5.5 billion) in the reporting period.
“The decrease is due to the lower cost of purchased oil for resale, cost of oil for refining, as well as a drop in oil prices. This was partially offset by the weakening of tenge vs. the US dollar. The cost of purchased oil for resale decreased by 46.4 percent year-on-year to 1.3 trillion tenge ($3.1 billion). The cost of oil for refining declined by 50.9 percent year-on-year to 314 billion tenge ($758 million),” the company said.
KazMunayGas (KMG) National Company is the Kazakhstan operator for exploration, production, refining, and transportation of hydrocarbons, representing the state interests in the oil and gas industry of Kazakhstan.
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