KazMunaiGas EP Third-Quarter Profit Declines 27% on Oil Price

Nov. 30. Bloomberg

By Nariman Gizitdinov

KazMunaiGas EP Third-Quarter Profit Declines 27% on Oil PriceKazMunaiGas Exploration Production, an oil unit of Kazakhstan’s state-run energy company, said third-quarter profit dropped 27 percent as crude prices fell and output volumes declined on power supply interruptions.

Net income fell to 51.8 billion tenge ($348 million) in the period from 71 billion tenge a year earlier, the Astana-based company said in an e-mailed statement today.

KazMunaiGas EP plans to increase oil output to as much as 13.5 million tons next year from 11.5 million tons this year after completing the purchase of a 33 percent stake in Petrokazakhstan Inc. The company seeks to buy that stake and other units from its parent company, KazMunaiGaz National Co., to counter depletion at Uzen and Emba, its main fields.

Output at the Uzen and Emba fields declined 4.5 percent to 182,000 barrels of oil a day in the first nine months because of interruptions in electricity supplies in the first and third quarters and severe weather conditions at the beginning of the year, KazMunaiGas EP said today. Total output fell 3 percent to 233,700 barrels a day, compared with the first nine months of last year, the company said Nov. 2.

Revenue fell 23 percent to 141 billion tenge, KazMunaiGas EP said. Operating profit fell 53 percent to 50.1 billion tenge, the energy company said.

Operating expenses rose 21 percent to 90.9 billion tenge after the introduction of the mineral extraction and rent taxes to replace export duty and royalty taxes, KazMunaiGas EP said.