Flying the flag: in Kazakhstan
KazMunai Gaz E&P on a high
Kazakhstan's state-run KazMunaiGaz E&P has booked a 28% rise in annual net income to 157 billion tenge ($1.282 billion), mainly due to higher crude prices.
London-listed KazMunaiGaz E&P, controlled by Kazakh state company KazMunaiGaz, said in a statement revenue rose 18% in 2007 to 487 billion tenge, or $3.97 billion, according to audited and consolidated 2007 earnings.
The company, which raised about $2 billion in a London initial public share offer in 2006, said it produced 10.6 million tonnes of crude oil last year, an 11.6% rise from 2006.
"The net income increase is attributable to higher prices received for crude, a favourable movement in the export-to-domestic sales mix, inclusion of Kazgermunai results, increased financial income," KazMunaiGaz E&P said.
It added, however, that the positive factors were partially offset by rises in foreign exchange losses and operating expenses as well as an increase in the effective tax rate.
Last month KazMunaiGaz E&P reported an 18 percent rise in its 2007 proved and probable reserves to 1.8 billion barrels, saying its reserve replacement ratio was 490%.
The company bought 50% stakes in smaller producers Kazgermunai and CITIC Canada Energy Limited last year.