KMG EP increased profit by 5% in January-September

Net profit of KazMunaiGas Exploration-Production in January-September 2012 went 5% up compared to the same period of 2011 and made $1.2 billion, Newskaz.ru writes citing the company. According to the company, the increase of profits is mainly linked to an increase of export and higher prices of goods supplied to the internal market. However, it was partially compensated by increased expenses for remuneration of personnel and payment of income tax. The company’s income in the first 9 months of 2012 made $4.1 billion, which is 11% more than in the same period of 2011. This is mainly due to a 6% export increase and 36% growth of prices of local supplies compared to the same period of 2011. In the first 9 months of 2012 KazMunaiGas Exploration-Production -- taking into account its shares in KazGerMunai, CCEL and PetroKazakhstan Inc. -- produced 9.1 million tons of oil (246 thousand barrels per day), which is 1% less than in the same period of 2011. The company’s production costs in the first 9 months of 2012 made $698 million, which is 18% more compared to the same period of 2011. A significant part of the expenses growth is related to increase of salaries and decrease of reserves of unsold oil. It was partially compensated by decreasing costs for repairs and maintenance in relation of the lowered well workover and decreased workover cost per well. KazMunaiGas Exploration-Production is one of the top 3 oil producers in Kazakhstan. The company’s oil production -- taking into account its shares in KazGerMunai, CCEL and PetroKazakhstan Inc. -- made 12.3 million tons in 2011. Proved and probable reserves of KMG EP made 226 million tons as of the end of 2011 and around 2.1 billion barrels if the company’s shares in joint ventures are summed up. The company’s shares are listed in Kazakhstan and London Stock Exchange. KMG EP attracted over $2 billion during the IPO in September 2006.