JSC NC KazMunayGas consolidated operating and financial results for the first quarter of 2019
Nur-Sultan, June 7, 2019 – JSC National Company KazMunayGas (“KMG” or “Company”), Kazakhstan's vertically integrated oil and gas company, announces its IFRS consolidated financial and operating results for the first quarter of 2019 according to IFRS (International Financial Reporting Standards).
Operating Highlights for 1Q 20191:
- Oil and gas condensate production was up 1.3% year-on-year to 5,939 thous. tonnes (495 thous. barrels of oil per day);
- Natural and associated gas production was up 4.7% year-on-year to 2,173 mln m³;
- Oil transportation increased by 6.7% year-on-year to 19,660 thous. tonnes;
- Gas transportation was down 3.6% year-on-year to 25.9 bln m³;
- Refinery volume was up 1.1% year-on-year to 4,901 thous. tonnes. Volume includes refinery volume in Kazakhstan of 3,306 thous. tonnes and KMG International (“KMGI”) of 1,595 thous. tonnes. Total oil products production was up 0.9% year-on-year to 4,597 thous. tonnes;
- Sales volume of crude oil produced by KMG was up 1.8% year-on-year to 5,922 thous. tonnes.
Financial Highlights for 1Q 20193:
- Revenue was up 20.5% year-on-year to 1,765 bln tenge (USD 4,673 mln);
- Net profit was up 51.4% year-on-year to 309 bln tenge (USD 819 mln);
- Capital expenditures were down 10.4% year-on-year to 73 bln tenge (USD 194 mln);
- EBITDA4 was up 27.1% year-on-year to 517 bln tenge (USD 1,370 mln);
- Net debt was up 9.9% as compared to 31 December 2018 and amounted to 2,356 bln tenge (USD 6,200 mln).
Key corporate events:
- On 22 February 2019, KMG EP completed their preferred shares buyback programme. In total, KMG EP repurchased preferred shares in the amount of 15.9 bln tenge, representing 65.0% of the outstanding shares. As of 14 May 2019, preferred shares of KMG EP were delisted from the KASE;
- In February 2019, the sale of KMG Retail LLP for 60,512 mln tenge was completed;
- In March 2019, international rating agency Fitch confirmed its rating at the level BBB-/Forecast stable”, while increasing the individual rating (stand-alone credit profile) from b to bb-;
- On March 29, 2019, KMG obtained the consent of the holders of Eurobonds to be redeemed in 2022, 2023, 2027 and 2044. (Eurobonds issued before 2018) for (1) alignment of the covenant package with the terms of the issue of Eurobonds of 2018 and (2) early repayment of Eurobonds in the amount of USD 30.1 million due for repayment in 2044;
- In accordance with a Presidential decree, KMG will fund the construction of a 7,000-seat stadium and congress hall in Turkestan for KZT 21 bln;
- On 29 April 2019, Mr. Luis Maria Viana Palha Da Silva was elected as Board Member – Independent director of KMG;
- On 20 May 2019, Mr. Anthony Espina was elected as Board Member of KMG representing core shareholder, JSC Samruk-Kazyna.