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KazMunai Gaz E&P on a high



By Upstream staff 

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.


Monday, 17 March, 2008, 09:03 GMT  | last updated: Monday, 17 March, 2008, 09:03 GMT

Flying the flag: in Kazakhstan
 

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