Kazakh KMG Boosts 1H Exports, Profits
Kazakhstan's state-run KazMunaiGas's 1H net profit increased by 32% to tenge 359.7bn ($1.1bn at 1H conversion rates) compared to the same period of last year, it said September 10.
The company’s gas production (dry and associated) rose by 2% to 4.123bn m3 (or 14% of total Kazakh gross gas output in 1H). Oil and condensate production was 11.769mn metric tons, up 1%.
KMG’s 1H2018 share in the giant Kashagan oil field's output increased by 76% year-on-year to 511,000 metric tons of oil and 0.297bn m3 gas, thanks to commissioning of gas re-injection in August 2017.
The company's gas sales - including bought-in gas - rose by 37% to 12bn m3 in the first half of the current year. Its gas exports reached 12.7bn m3, an increase of 60%, mainly due to gas export to China. Gas export to China started in October 2017 under a 5bn m3/yr export agreement between KTG and PetroChina; such exports to China in 1H2018 amounted to tenge 231.6bn ($709mn).
KMG transported 54.9bn m3 of gas, which was 15% higher than in 1H2017. State-run transportation operator Kaztransgas (KTG) in April 2018 raised a syndicated loan of $200mn to finance the construction of three compressor stations on the Beineu-Bozoi-Shymkent gas pipeline project; the pipe had started initial operations in late 2015.
KMG’s revenue was tenge 3,356bn, up 62% year-on-year, but capital expenditure declined by 33% to tenge 177bn as major projects were completed. Net debt at June 30, 2018 was up 61% to tenge 2,163bn mainly due to a bigger shares buyback by KMG’s upstream arm KMG EP than in 2017.