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Results of the Year

KazMunayGas Financial Statements for Nine Months of 2022

 JSC National Company KazMunayGas, Kazakhstan's national vertically integrated oil and gas company, publishes its interim condensed consolidated financial statements prepared in accordance with International Financial Reporting Standards (IFRS) 34 "Interim Financial Statements" for the three and nine months ended September 30, 2022, with a report on the results of the review of interim financial information by an independent auditor.

Financial highlights for nine months of 2022¹ compared to nine months of 2021 (includes 100% stake in KMG Kashagan B.V. by full consolidation method):

• Revenue increased by 77.4% to 6,776 bn tenge (USD 14,774 mn) compared to 4,597 bn tenge (USD 10,825 mn);

• EBITDA increased by 41.8% to 2,020 bn tenge (USD 4,405 mn) compared to 1,425 bn tenge (USD 3,354 mn);

• The Company's net profit including share in income of joint ventures and associates increased by 15.9% and amounted to 1,162 bn tenge (USD 2,534 mn);

• Net profit adjusted for the share in profits of joint ventures and associated companies ² was 634 bn tenge (USD 1,382 mn) compared to 637 bn tenge (USD 1,500 mn);

• FCF calculated in accordance with updated dividend policy amounted to – 21 bn tenge (USD – 46 mn) compared to 425 bn tenge (USD 1,000 mn) year-on-year;

• Gross debt as of September 30, 2022 amounted to 4,302 bn tenge (USD 9,024 mn) compared to the indicator as of December 31, 2021 in the amount of 3,746 bn tenge (USD 8,676 mn);

• The Company's net debt as of 30 September 2022 amounted to 2,186 bn tenge (USD 4,585 mn) compared to 1,987 bn tenge (USD 4,603 mn) as of December 31, 2021.

Impact of Kashagan call option exercise on financial performance

On September 15, 2022 the Company increased its stake in KMG Kashagan B.V. from 50% to 100%. KMG Kashagan B.V. owns 16.88% in the Kashagan project.

Previously, 50% interest in KMG Kashagan B.V. in the consolidated financial statements of KMG was reflected by equity method as investment in joint ventures, which implies inclusion of only 50% interest in net assets of KMG Kashagan B.V. in consolidated assets of KMG and 50% interest in net income of KMG Kashagan B.V. in the consolidated income statement of KMG.

Since the ownership of 100% interest in KMG Kashagan B.V., this company is consolidated by the method of full consolidation in the financial statements of KMG in the current period and as of the current date. In accordance with IFRS standards, KMG's historical results have been restated to include the 100% share of KMG Kashagan B.V. Accordingly, the financial performance of KMG in the previously published reports differs from the results in the nine months of 2022. More detailed information is available in the consolidated financial statements of KMG.

Production results for the first nine months of 2022¹¹:

• Oil and gas condensate production increased by 0.9% to 16,060 thousand tonnes;

• Oil transportation volumes amounted to 55,085 thousand tonnes compared to 55,727 thousand tonnes in the same period last year;

• The volume of refining of hydrocarbons at Kazakhstani and Romanian refineries in aggregate increased by 5.8% and amounted to 14,896 thousand tonnes.