Kazakhstan, Astana, March 2 / Trend, D.Mukhtarov /
Sales of crude oil and refined products of the JSC KazMunaiGas Exploration Production (KMG EP) in 2011 increased by 19 percent compared to 2010 and amounted to $4.832 billion due to increase in the average realized price, partly offset by reduced export volumes due to decreased production, the company's consolidated financial statements say.
According to the repot, net profit in 2011 amounted to $1.425 billion and earnings per share -$3.4 per GDR, decreasing by 11 percent and 9 percent, respectively, compared to 2010.
The main factors that had a negative impact on KMG EP's results were production and export decline due to the illegal strike that took place in May-August 2011 and introduction of export duty in 2010 and doubling of its rate in 2011.
In 2011 KMG EP's consolidated production was 12.341 million tons of crude oil (250,000 barrels per day) including the Company's stakes in LLP Kazgermunai JV (KGM), CCEL (CCEL, Karazhanbasmunai) and PetroKazakhstan Inc. (PKI). This was 944,000 tons or 7 percent less than in 2010.
Uzenmunaigas (UMG) produced 5.082 million tons (102,000 barrels per day), which is 884,000 tons less than in 2010. Embamunaigas (EMG) produced 2.818 million tons (57,000 bopd), which is 18,000 tons more than in 2010, thereby the total volume of the oil produced at production facilities of UMG and EMG in 2011 was 7.9 million tons (159,000 bopd), which is 866,000 tons, or 10 percent less than in 2010, the company's report says.
The results were negatively affected by the illegal strike at UMG that took place in May-August 2011 and power cuts throughout the year. The loss of production has mainly impacted on the Company's export volumes, which in turn was a major reason of Company's weaker financial results compared to previous year.
The Company is currently implementing a number of measures to increase production level at Uzen in the short term and ensure sustainability and efficiency of UMG operating activities going forward, the report says.
It was agreed after discussions between the Board of directors of KMG EP, the Government, National Wealth Fund Samruk-Kazyna and the National Company KazMunaiGas that the subsidised price applied to most of the crude shipments by KMG EP to Atyrau refinery would be gradually increased during the course of 2012.
As previously announced (see press-release of January 9, 2012) the current plan envisages production growth at Uzen from 5.1 million tons in 2011 to 5.8 million tons in 2012.
The combined production of EMG and UMG is expected to increase from 7.9 million tons in 2011 to 8.6 million tons in 2012.
The Company's export sales and domestic sales volumes from the Uzenmunaigas and Embamunaigas production facilities in 2011 were 5.758 million tons (116,000 bopd) and 1.898 million tons (38,000 bopd), respectively.
The Company's share in the production volumes from KGM, CCEL and PKI amounted to 4.442 million tons of crude oil (91,000 bopd), which is 78,000 tons or 2 percent less than in 2010 in line with production plans of these companies, the report says.
The Company's sales of crude oil and refined products in 2011 increased by 19 percent compared to 2010 and amounted to 708 billion tenge ($4.832 million). This was due to a 34 percent increase in the average realized price, from 69,101 tenge per ton ($64.86 per barrel) to 92,535 tenge per ton ($87.29 per barrel) partly offset by reduced export volumes due to decreased production.