BAKU, Azerbaijan, Mar. 16
By Nargiz Sadikhova - Trend:
The consolidated revenue of Kazakhstan’s Kazatomprom National Company was 587.4 billion tenge ($1.4 billion) in 2020, an increase of 17 percent compared to 2019, Trend reports citing Kazatomprom.
The company said that the increase was due to an increase in the average realized price associated with an increase in the spot price for uranium, and weakening of the KZT against the US dollar in 2020. This revenue increase was also supported by a slight increase in sales volumes in 2020 in comparison to 2019.
Operating profit in 2020 was 223.8 billion tenge ($534.8 million), an increase of 47 percent compared to 2019. The increase was mainly due to an increase in average realized price, as well as an increase in the share of uranium sold that was produced by the Company’s consolidated subsidiaries. When such material is sold, the cost of sales is predominantly represented by the cost of production and the full mining margin is captured in the consolidated results of the Group.
Net profit in 2020 amounted to 221.3 billion tenge ($528.7 million), an increase of 4 percent compared to 2019. In 2020 the net result from the sale of the investment in the joint venture Uranium Enrichment Center JSC was 22.06 billion tenge ($52.7 million).
Adjusting for that one-time effect, adjusted net profit for 2020 was 199.3 billion tenge ($476.07 million), an increase of 40 percent compared to 2019 and consistent with the increase in the operating profit in 2020.
In 2019, there was a 16.9 billion tenge ($40.5 million) gain from the reversal of a liability under JOs, which was initially recorded in 2018. This gain was related to volumes of uranium that were not purchased from JOs in 2018, and which the Group does not plan to purchase in the future. As a result, this liability was reversed in 2019. Also during 2019, JV “Khorasan-U” LLP was included in the consolidation. The one-time effect of this transaction was 54.6 billion tenge ($130.5 million).
Adjusted EBITDA totalled 325.7 billion tenge ($778.07 million) in 2020, an increase of 31 percent compared to 2019, while attributable EBITDA was 295.465 million tenge ($705.7 million) in 2020, an increase of 36 percent compared to 2019. The changes were mainly driven by a higher operating profit, as well as an increase in the EBITDA of JVs and associates.
Operating cash flows totalled 161.5 billion tenge ($385.9 million), an increase of 1 percent compared to 159.5 billion ($381.06 million) in 2019.
The modest increase was mainly due to growth in the average realized price associated with an increase in the market spot price for uranium, the weakening of the KZT against the USD in 2020, and a change in timing of the sales schedule, partly offset by an increase in working capital.
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