KazMunaiGas E&P Reports 32 Percent Jump in Operating Profit

KazMunaiGas Exploration Production has reported that its operating profit increased by 32 percent to 141.9bn Tenge ($963m) compared with the nine months of 2009, mainly due to higher oil prices.

In the nine months of 2010 KMG EP made a profit after tax of 156.8bn Tenge ($1,064m) and earned 2,155 Tenge per share ($2.44 per GDR) compared with 180.6bn Tenge ($1,231m) and 2,467 Tenge per share ($2.8 per GDR) in the corresponding period in 2009.

Average Brent price in the nine months of 2010 increased by 34 percent compared with the same period of 2009, from $57.32 per barrel to $76.73 per barrel.
The consolidated production in the nine months of 2010 is 15 percent higher than in the same period of 2009 mainly due to the acquisition of a 33 percent stake in PKI in December 2009 and increased production of other operating assets, except Uzenmunaigas production unit.

Commenting on the financial results for the nine months of 2010, Kenzhebek Ibrashev, CEO of KMG EP, said: “We are happy with our results in the first nine months of 2010. KMG EP made a considerable profit in a higher oil price environment, somewhat offset by the increase in costs and the impact of the recently introduced crude oil export duty. The contribution to the results from our joint ventures is further evidence that the acquisitions made since the IPO have been well considered. We will continue to identify appropriate value enhancing opportunities with potential for significant further development”.

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