Azerbaijan, Baku, May 15 / Trend E. Kosolapova/
Kazakh Oil and Gas Company KazMunaiGas Exploration Production (KMG EP) increased net profit by 27 percent in the first quarter of 2012 compared to the same period of 2011, the company reported on Tuesday.
In January- March 2012 the KMG EP's net profit hit 75 billion tenge ($508 million).
The company's revenues in the first three months of 2012 increased by 8 percent compared to the same period of 2011 and amounted to 207 billion tenge ($1,396 million). This was mainly due to a 14 percent increase in the average realized price to 104,302 tenge per ton ($97.39 per barrel) partly offset by reduced export volumes.
Company's profit after tax (net income) in the first three months of 2012 was 75 billion tenge ($508 million). This represents a 27 percent increase compared to the same period of 2011, which is mainly explained by a higher oil price, domestic supplies price increase according to agreement reached with Government on 2012 and lower SG&A expenses partly offset by a decline in exports.
Taxes, other than on income, in the first three months of 2012 were 75 billion tenge ($508 million), which is 4 percent higher compared to the same period of 2011. The increase is due to the progressive scale of applicable tax rates as a result of the higher oil price, partially offset by reduced production and export volumes.
Production expenses in the first three months of 2012 were 31billon tenge ($209million), which is 4 percent higher compared to the same period of 2011. A significant part of the production cost increase is due to annual salary indexation from 1st January 2012 partly offset by a reduction of the number of repaired wells.
Operating cash flow in the first three months of 2012 was 68 billion tenge ($457 million), which is 46 percent higher compared to the same period of 2011, mainly due to the increase in oil price.
Borrowings as at 31 March 2012 were 88 billion tenge ($596 million), the same as at 31 December 2011. Borrowings include 80 billion tenge ($543 million) of non-recourse debt of KMG PKI Finance B.V. related to the acquisition of the 33 percent interest in PetroKazakhstan Inc.
Net cash position at 31 March 2012 amounted to 680 billion Tenge ($4.6 billion) compared to 629 billon tenge ($4.2 billion) as at 31 December 2011.
KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2011 was 12.3 million tons (an average of 250 kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL and PetroKazakhstan Inc. The total volume of proved and probable reserves, as at the end of 2011 was 226 million tons (1.7 billion barrels), including shares in the associates of about 2.1 billon barrels.