Chinese oil giant’s subsidiary in Kazakhstan sees profits plunge 50%

KMK Munai, an oil company owned by China’s CNPC, CITIC Group and Suntime Group, reported a net profit of approximately $7.2 million in 2024, a sharp 48.9% decline year-on-year, according to statements posted on the Kazakhstan Stock Exchange (KASE) website.

Pre-tax profit fell even further, dropping 55.8% to nearly $10.5 million, compared to $24.5 million in 2023. Meanwhile, KMK Munai’s revenue slipped just 3% to $121 million, while its cost of sales jumped 18.5% to $68 million.

Despite shrinking profits, the company’s assets grew 2.3% to approximately $213 million, liabilities fell 2% to $120 million and equity rose 8.3% to $93.6 million.

KMK Munai operates the Kokzhide, Kumsai and Mortuk oil fields in Kazakhstan’s Aktobe region. Founded in 2004, the company has undergone multiple changes in ownership and structure. Currently, a controlling stake of 50% plus one share is held by CNPC-Aktobemunaigas, a subsidiary of China’s state-owned CNPC. The remaining shares are owned by Yukon Energy Holding, a Panama-registered company controlled by CITIC Group and Suntime Group.

KMK Munai’s board of directors is chaired by Li Shufeng, a Chinese national, and includes Ondasyn Urazalin, the former governor of the Aktobe region.