KazMunaiGas EP boosts Q1 earnings 14%
ALMATY. May 10 (Interfax) - KazMunaiGas Exploration Production (KMG EP) boosted net profit 14% year-on-year in Q1 2011 to 59 billion tenge ($403 million) on the back of higher oil prices, the Kazakh oil producer said in a statement.
The rise in profit is mainly attributed to a 38% increase in oil price, partly offset by increase in operating taxes, production costs and selling, general and administrative expenses.
Revenue grew 31% year-on-year to 192 billion tenge ($1.308 billion due to a 33% increase in the average realized sale price, from 69,022 tenge per tonne ($64.64 per barrel) to 91,682 tenge per tonne ($86.61 per barrel).
In the first three months of 2011 KMG EP's share of results of associates and joint ventures was 22 billion tenge ($148 million) compared to a 12 billion tenge ($82 million) in same period of 2010. The financial results of associates and joint ventures in the first three months of 2011 were primarily affected by the higher oil price compared to the same period of 2010.
Earnings per share were 810 Tenge ($0.9 per GDR), up 14% up from the same period of last year period in 2010.
Production expenses in the first three months of 2011 were 30bn Tenge (US$203m), which is 37% higher compared to the same period of 2010. Selling, general and administrative expenses in the first three months of 2011 were 25 billion tenge ($173 million), which is 22% higher compared to the same period of 2010, mainly due to increase in fines in penalties related to an environmental fine accrual as well as increase in transportation and payroll expenses.
Purchases of property, plant and equipment in the first three months of 2011 were 18 billion tenge ($122 million), representing 68% increase compared to the same period of 2010.
The company's assets as at March 31, 2011 amounted to 1.499 trillion tenge against 1.429 trillion tenge at the end of 2010, equity stood at 1.213 trillion tenge and 1.160 trillion tenge, respectively, the registered capital was 209.540 billion tenge and 214.081 billion tenge, liabilities totaled 286.705 billion tenge and 269.157 billion tenge.
KMG EP was created in March 2004 as result of a merger of two daughter companies of KazMunayGas - EmbaMunayGas and OzenMunayGas.
The company's shares are listed on the Kazakhstan Stock Exchange and the GDRs are listed on the London Stock Exchange. The company raised over $2 billion in its IPO in September 2006.