KMG EP lifts profit despite strike

Profits up: at KMG EP

KazMunaiGas Exploration Production posted a 5% rise in nine-month net profit, as strong crude prices offset a decline in production due to a long-running strike.

The London-listed arm of Kazakh state oil and gas company KazMunaiGas said January-September net profit increased to 165 billion tenge ($1.13 billion). Earnings per share rose 6% to 2,280 tenge, or $2.60 per global depositary receipt.

The company said on Monday the average price of Brent crude in the period was $112 per barrel, up 46% compared with the 2010 period.

Emergency power cuts at fields in western Kazakhstan and a strike at its Uzenmunaigas unit hit consolidated production, which fell 7% to 9.21 million tonnes, or 250,000 barrels per day.

KazMunaiGas EP said it expected to produce 8.5% less crude this year than it had originally planned. It said the production process at the Uzenmunaigas field had been "normalised".

Its crude oil exports declined 37% in the third quarter as a result of the strike, Reuters reported.

In financial terms, overall crude sales in the first nine months rose 23% to 536 billion tenge, as higher prices offset the decline in output.

Newsletter signup


Become an Upstream member!

Membership includes a subscription to our weekly newspaper providing in-depth news from the energy industry, plus full-access to this site and its archives. Still not convinced? Try our free trial.

Already a member?