KMG profits rise on higher gas exports
Kazakhstan’s national oil and gas company KazMunayGas (KMG) posted a 73% growth in profits in the first half, supported by rising gas exports and a drop in the value of the Kazakh tenge.
Net income reached tenge 622bn ($1.64bn), up from tenge 359.7bn a year earlier, the producer reported on August 22. Ebitda surged by 20.5% to tenge 1.095 trillion, aided by a 1.4% growth in revenues to tenge 3.4 trillion.
KMG attributed its improved standing to increased revenues from gas sales to China, which climbed 46.7% yr/yr to tenge 340bn. KMG began selling piped gas to PetroChina in late 2017 under a one-year contract for 5bn m3. The pair signed a five-year deal in October 2018, expanding shipments to 10bn m3/yr.
The company also pointed to devaluation of the tenge, which slumped to record lows against the US dollar last summer.
These factors helped to mitigate a 0.5% yr/yr decline in oil and gas condensate production in January to June, as a result of maintenance at the offshore Kashagan project and high levels of water cut at the onshore Karachaganak field. KMG’s gas operations performed better, with output rising 0.9% yr/yr to 4.16bn m3.