Kazakhstan state owned oil and gas holding KazMunayGaz has reported an increase in revenues for the first half of this year, although the profitability of its directly owned and assets, including onshore oilfields in the Mangistau region of Kazakhstan, actually declined.

KazMunayGaz reported a 55% growth in revenues to 4.2 trillion tenge ($9 billion) between January and June this year against 2.7 trillion tenge in 2020.

KazMunayGaz’ other business segments are the pipeline transportation, refining and marketing of oil and oil products.

Combined net income from these declined to 156 billion tenge in the first half of this year, compared with 384 billion tenge a year earlier.

The KazMunayGaz’ share in the pre-tax income of over 12 non-operated oil and gas companies in which it holds minority stakes, jumped to 644 billion tenge in the first half of this year, against 324 billion tenge in the same period.

Two foreign-led oil producing ventures in Kazakhstan — Tengiz and Kashagan — added close to 500 billion tenge to KazMunayGaz’ revenue line in the first half of this year, against 230 billion tenge in the same period of 2021, highlighting probable growth in profitability for foreign-led operators of these assets.

KazMunayGaz holds a 20% stake in the Tengiz project and another 8.4% shareholding in the Kashagan development.

Despite several disruptions to oil export loading operations by Caspian Pipeline Consortium in the first half of this year, KazMunayGaz received payments of 64 billion tenge from the operator in the reporting period, compared with 39 billion tenge a year earlier.

Additionally, KazMunayGaz said that oil export shipments to China via West Kazakhstan-China pipeline rose by 17% during the reporting period, while declined by almost 3% via the legacy oil pipeline running across Russia and known as Atyrau–Samara link.

KazMunayGaz has blamed the decline in overall profitability on directly operated business segments on high purchasing costs of hydrocarbons and oil products that were either used internally or supplied to company’s customers. Such costs jumped by almost 74% to 2.8 trillion tenge.

The company said that operating costs at its directly owned assets rose by the same margin as revenues, increasing by 54% to 482 billion tenge.

Consequently, KazMunayGaz’ consolidated net income attributable to shareholders, came out at 656 billion tenge for the period between January and June against 644 billion tenge in the same period of 2021.

Although high prices boosted revenues by 55%, it also reported an increase of its long term debt to 3.6 trillion tenge in this period against 3.3 billion tenge.

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