BAKU, Azerbaijan, Mar. 15
By Nargiz Sadikhova - Trend:
Production expenses of Kazakhstan’s KazMunayGas National Company (KMG) in 2020 increased marginally year-on-year to 741 billion tenge ($1.7 billion), Trend reports citing the KMG.
General and administrative expenses decreased by 20.5 percent year-on-year to 170 billion tenge ($412 million).
Taxes other than income tax slid by 40.7 percent year-on-year to 270 billion tenge ($652 million) mainly due to a decrease in rent tax on crude oil export, export customs duty and mineral extraction tax following a fall in oil prices.
In 2020, finance costs were at 298 billion tenge ($720 million), down by 6.3 percent year-on-year. The decrease is mainly attributable to the early fulfilment of obligations under the Tengizchevroil’s (TCO) crude oil prepayment agreement.
“Amidst significant changes in market prices, weighed by concerns over the COVID-19 pandemic and its impact on the economy, assumptions on oil prices, projected refinery margins, production volumes, exchange rate and inflation were revised during impairment testing,” the company said.
In 2020, KMG recognized an impairment in the total amount of 244 billion tenge ($589 million) in the consolidated statement of comprehensive income. This includes asset impairment of KMG at 162 billion tenge ($393 million), JSC Embamunaigas at 60 billion tenge ($146 million), Sunkar, Barys and Berkut self-propelled barges at 10 billion tenge ($25 million) and others at 11 billion tenge ($25 million).
In the reporting year, the company’s net profit slid by 85.2 percent year-on-year and amounted to 172 billion tenge ($416 million) due to a decrease in prices, a decrease in revenues and share in the profit of joint ventures and associates, as well as impairment of assets, which was partially offset by lower cost of purchased oil, gas, petroleum products and other materials, as well as taxes other than income tax.
Net profit for the year attributable to shareholders of the Parent Company amounted to 273 billion tenge ($661 million).
In 2020, the Company’s capital expenditures (on accrual basis, segment reporting) amounted to 454 billion tenge ($1.09 billion), down by 10.1 percent compared to 2019. This mainly reflects a decrease in capital expenditures in the segment “Exploration and production of oil and gas” by 35 percent year-on-year to 168 billion tenge ($405 million).
