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KazMunaiGas EP H1 net falls on lower oil prices

Oil&Gas Materials 4 September 2009 15:20 (UTC +04:00)
Kazakh oil producer KazMunaiGas Exploration and Production (KMG EP) (KMGq.L) RDGZ.KZ said on Friday its net income fell 13 percent year-on-year in the first half of 2009 to about $890 million as oil prices fell.
KazMunaiGas EP H1 net falls on lower oil prices

Kazakh oil producer KazMunaiGas Exploration and Production (KMG EP) (KMGq.L) RDGZ.KZ said on Friday its net income fell 13 percent year-on-year in the first half of 2009 to about $890 million as oil prices fell, Reuters reported.

"The net income decline is mainly attributable to the decrease in revenue due to lower oil prices," it said in a statement.

Oil prices have declined sharply over the past year, impacting earnings among all global producers.

KMG EP's operating profit fell 74 percent year-on-year to 57.0 billion tenge ($394 million).

The company also said it made a provision of 9.3 billion tenge ($62 million) related to tax issues following an audit by the finance ministry.

Operating profit in the second quarter, 37 billion tenge ($245 million), was below analysts' estimates although revenues were largely in line with them.

Russian brokerage Metropol earlier on Friday forecast KMG EP's second-quarter EBITDA (operating profit) at $345 million. Looking forward, Metropol said the key issue would be Kazakhstan's plans to reintroduce a oil export duty.

Kazakh state oil and gas firm KazMunaiGas holds a controlling stake in KMG EP.

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