KazMunayGas reports increase in output and less revenue

According to KazMunayGas, a national oil company in Kazakhstan, over the first nine months of this year, the company’s revenue declined to $13.4 billion or by 10.2% compared to the same period last year.

The net profit of KMG has decreased to $2.095 billion over the period from January to September compared to $2.532 billion over the same period last year (-18.3%). EBITDA dropped by 15.8% to $3.7 billion and cash flow declined by 53.4% to $1 billion, while capital expenditures of the company, in contrast, have risen by 72.1% to $1.1 billion. KMG’s overall debt declined by 3.2% to $8.67 billion, while its net debt decreased by 5.2% to $4.39 billion.

At the same time, the company reported an increase in oil output over the reporting period by 9% to 17.5 million tons, transportation of oil increased by 7.8% to 59.4 million tons, while oil refinery rose by 0.03%, to 14.9 million tons. The cost of Brend crude oil dropped from $105.51 per barrel over the first nine months last year to $82.07 per barrel over the same period this year (-22.2%).

Thus, Ozenmunaygas reported a 4.7% decline in oil production to 3.6 million tons; Mangystaumunaygas reported a 1.7% increase in production to 3.6 million tons; Embamunaygas reported a 4.7% increase in production to two million tons; oil production at Tengiz has risen by

0.9% to 4.3 million tons; at Kashagan by 213.4% to 2.3 million tons and at Karachaganak by 4.8% to 805,800 tons, while all other oil fields reported a decline in output by 6.2% to 2.1 million tons. The increase in oil production at Kashagan followed KMG’s acquisition of a 50% share in KMG Kashagan B.V. from the Samruk Kazyna national fund in September 2022. As a result, the company’s share in Kashagan has increased from 8.44% to 16.88%. In other words, the sharp growth of output was a result of the low base over the period from January to September last year. During the IPO in December 2022, KMG offered investors 3% of its shares. As of October 1, 2023, 87.42% of KMG stock was controlled by Samruk Kazyna, 9.58% by the National Bank and 3% by minority shareholders. According to Samruk Kazyna, the secondary public offering (SPO) is still an option. If this happens, the National Bank will sell its stake, the regulator said.