KMG EP profits take a hit

Deadly: clashes in Zhanaozen in December 2011

AP/SCANPIX

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Steve Marshall

 13 March 2013 09:56 GMT

Kazakh oil producer KazMunaiGas Exploration Production (KMG EP) saw its profits tumble 23% last year as it was hit by an impairment charge related to a strike, as well as higher taxes and costs.

The company ended the year with net income of $1.079 billion (161 billion tenge), down from $1.4 billion in 2011, despite boosting revenue by 11% year on year to $5.35 billion on higher exports and oil prices.

KMG EP said it incurred a $500 million charge at its main production unit, OzenMunaiGas, after a 2011 strike and subsequent protest by sacked workers that erupted into Kazakhstan’s worst violence for decates, resulting in 16 deaths during clashes in the town of Zhanaozen that serves the oilfield.

The London-listed unit of Kazakh state oil company KazMunaiGas saw its output drop by 1% last year…

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