KazMunaiGas Exploration and Production profits falls by 67 percent in 201411 march 2015, 12:35
Net profit of KazMunaiGas Exploration and Production in 2014 amounted to 47 billion tenge, which is 67 percent less than in 2013, Tengrinews reports citing the company's consolidated financial statement for the previous year. In 2013 the profit was 142 billion tenge.
"Total revenue and other income was 927bn Tenge (US$5,174m), 4% more than in 2013. This amount includes the company's share in the results of associate and joint ventures of 60bn Tenge (US$336m) and finance income of 21bn Tenge (US$116m)," the Kazakhstani oil company said.
The company explained that the decrease was mainly due to a significant depreciation of assets of OzenMunaiGas in the fourth quarter of 2014 (228 billion tenge), partially offset by foreign exchange gain in the first quarter of the same year.
The net loss amounted to 195 billion tenge in the fourth quarter whereas the 2014 revenue amounted to 846 billion tenge ($4.7 billion), which is four percent more than in 2013. Revenue growth in tenge was connected to an increase in the prices of oil supplied to the domestic market by 20 percent. In addition, it was due to a higher export price in tenge after the devaluation (nearly 20% devaluation of the tenge in February 2014).
According to the company, the production costs of the company last year were 212 billion tenge, 31 percent higher than in 2013, mainly due to an increase of employee benefits in the company's production units.
KMG EP also had an income from forex conversions in the amount of 53 billion tenge. Thus, the after-tax total income for the period was 100 billion tenge.
The entire report can be found here.
Writing by Dinara Urazova, editing by Tatyana Kuzmina