Kazakhstan’s state owned oil and gas holding KazMunayGaz has reported growth on several financial measures in the period between January and September this year, despite seeing continued stagnation in oil production, according to its latest financial statement,

The company that is the fourth largest oil producer in the country, said that oil and condensate output at its directly-operated legacy onshore assets remained flat or declined slightly this year against 2020.

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That has happened despite the relaxation of production quotes by Opec+ alliance, of which Kazakhstan is a participant.

KazMunayGaz’ total oil and condensate output fell by 3% to 436,000 barrels per day between January and September this year against the same period of 2020, including the company’s equity oil in three foreign-led joint ventures in Kazakhstan, Tengiz, Karachaganak and Kashagan,.

The overall decline has been triggered by KazMunayGaz’ lower entitlement from the Tengiz project where its share of output fell by 7,000 bpd, the company said in its results presentation.

The company's gas production declined even faster in the first nine months of the year, falling by 6% to 5.8 billion cubic metres.

However, improving market fundamentals lifted the company’s total revenues to 4.8 trillion tenge ($11.4 billion), up by 44% on the same reporting period last year, with net income attributable to shareholders, rising almost five fold to 947 billion tenge.

On quarter to quarter comparison, KazMunayGaz’ revenues jumped by 54% to 1.67 trillion tenge and net income rose by one and a half times to 303 billion tenge in the third quarter of 2021 against the third quarter of the last year.

Together with lower capital investments and a rebound in the profitability of the upstream segment of the business, KazMunayGaz’ cash and equivalents line rose by $663 million by 30 September this year against 31 December 2020.

Gross debt edged down during the reporting period, ending the period at about $9.45 billion.

There was a $1.1 billion fall in this gross debt in November, however, following the unbundling of gas transmission operator Kaztransgaz to become an independently-run entity.

Kaztransgaz grew transportation volumes by 12% to over 71 Bcm between January and September, with total revenues of $1.46 billion and net income of $823 million, according to KazMunayGaz’ statement.