News 2020May 2020
The debt of KazMunayGas NC is $10.6 billion. Since the beginning of 2018, debt has decreased from $16 billion to $10.6 billion thanks to measures to strengthen financial stability and an early repayment program. This was reported at a briefing by the national company.
“These funds were raised in past periods to finance investment projects and ongoing activities of KMG. We took into account the experience of falling oil prices in 2014 and over the past years we have carried out systematic work to strengthen the financial stability of KMG. So, for 2018-2019, we reduced debt by paying off liabilities, including long-term advances for exported oil, in the amount of $5.3 billion,” Dauren Karabaev, the Deputy Chairman of the Management Board and Finance Director of KMG, said.
As a result of transactions on refinancing Eurobonds in 2017-2018, the repayment schedule of KMG's external debts was aligned. Early repayments attributable to 2020 and 2021 are closed. The company said that large one-time external repayments of Eurobonds are not planned until 2022.
These measures help KMG to be in a relatively better position than in previous periods of falling energy prices. However, the fall in oil prices this time is deeper than in 2014. In this connection, a significant decrease in financial indicators for the year is expected.