KazMunaiGas Exploration Production: Q1 Results – Profit up 8%
JSC KazMunaiGas Exploration Production announces its condensed consolidated interim financial statements for the three months ended
March 31, 2012.
– Revenues increased by 8% to 207bn Tenge (US$1,396m)1 compared to the same period of 2011 on higher Brent and domestic prices offset by reduced export volumes.
– The average price of Brent in the first three months of 2012 was 12% higher than in the same period of 2011, up from US$105 per barrel to US$119 per barrel.
– Net profit amounted to 75bn Tenge (US$508m) and earnings per share – 1,070 Tenge (US$1.2 per GDR), an increase of 27% and 32%, respectively, compared to the same period of 2011.
In the first three months of 2012 KMG EP produced 3,029 thousand tonnes of crude oil (249 kbopd), including the Company’s stakes in Kazgermunai (KGM), CCEL and PetroKazakhstan Inc. (PKI) which is 5% less than in the same period of 2011. JSC Uzenmunaigas (“UMG”) produced 1,236 thousand tonnes (101 kbopd), which is 177 thousand tonnes less than in the same period of 2011. JSC Embamunaigas (“EMG”) produced 675 thousand tonnes (55kbopd), which is 6 thousand tonnes less than in the same period of 2011. The total volume of the oil produced at the production facilities of UMG and EMG in the first three months of 2012 was 1,911 thousand tonnes of oil (156 kbopd), 9% less than in the same period of 2011.
First quarter production volume was about 150 thousand tonnes (7%) behind the plan, primarily due to adverse weather conditions. As prompted by the first quarter performance indicators, the 2012 UMG annual target of 5.8 million tonnes looks rather challenging. Management expects the production to recover at a moderate pace. In the middle of the year following the second quarter production trend, KMG EP intends to confirm or update its 2012 annual production projection.
The Company’s share in the production from KGM, CCEL and PKI for the three months of 2012 amounted to 1,119 thousand tonnes of crude oil (93 kbopd) or 4% more than in 1Q of 2011.
Crude Oil Sales
In the first three months of 2012 the Company’s export and domestic sales from the UMG and EMG were 1,496 thousand tonnes (122 kbopd) and 457 thousand tonnes (37 kbopd) respectively. The Company’s share in the sales from KGM, CCEL and PKI was 1,105 thousand tonnes of crude oil (93kbopd). It includes 766 thousand tonnes (64kbopd) supplied to export markets.
Net Profit for the Period
Profit after tax (net income) in the first three months of 2012 was 75bn Tenge (US$508m). This represents a 27% 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.
The Company’s revenues in the first three months of 2012 increased by 8% compared to the same period of 2011, and amounted to 207bn Tenge (US$1,396m). This was mainly due to a 14% increase in the average realized price to 104,302 Tenge per tonne (US$97.39 per barrel) partly offset by reduced export volumes.