Audit conclusion on financial reporting of Mangistaumunaigas OJSC (Kazakhstan) for 2000

/KASE, March 12, 02/ - Mangistaumunaigas OJSC (Aktau) presented KASE an audit conclusion on consolidated financial reporting for the year 2000 performed by NAC Abzal Audit CJSC (Almaty, Kazakhstan). Based on data of independent auditor following indicators have been results of financial and economic activity of the company as of December 2000 and 1999 (in KZT, th., unless otherwise specified): ---------------------------------------------------------------- As of As of Indicator Dec 31,99 Dec 31,00 --------------------------------------- ----------- ---------- Authorized capital 10,894,602 10,894,602 Shareholders' equity 13,299,253 24,580,133 Total assets 43,468,180 75,888,669 Net working capital -11,098,750 -4,752,060 Accounts receivable 7,128,656 31,019,141 Total liabilities 30,168,925 48,341,960 Accounts payable 23,694,624 41,106,752 Volume of realized goods (services) 45,781,992 95,584,657 Cost of goods (services) sold 7,996,154 19,292,011 Net income 8,090,127 11,377,119 --------------------------------------- ----------- ---------- Calculated based on the auditor's data: --------------------------------------- ----------- ---------- Return on sales (ROS), % 82.5 79.8 Return on equity (ROE), % 60.8 46.3 Return on assets (ROA), % 18.6 15.0 Earnings per common share (EPS), KZT 813.97 1,149.21 Book value of 1 share, KZT 1,221.01 2,256.71 ---------------------------------------------------------------- Audit of consolidate financial reporting of Mangistaumunaigas OJSC and its subsidiaries for 1999-2000 was performed by NAC Abzal Audit CJSC in compliance with Kazakhstan accounting and audit standards. In opinion of the auditor, consolidated financial reporting represents true picture of the company's financial position as of December 31,1999 and 2000, and also results of its activity and cash flows for the period from January 1 through December 31,2000 in accordance with accounting methods in Kazakhstan. According to Comment 1 of audit conclusion financial reports of Mangistaumunaigas OJSC and thirteen its companies were included into consolidated financial reporting: AraY LLP (transport services), Butgyshi LLP (drilling services), Buzachinsky technological transport LLP (transport services), Dastarkhan LLP (catering), Densaulyk LLP (1999 - 100%, 2000 - 0%, health services), Khimremontskvazhin LLP (chemical repair services), Mangistauenergomunai LLP (electric repair), Mangistaumunaizholdary LLP ( roads building), Mangistau technological transport LLP (transport services), Mangistaumunara LLP (wells repair), Munaitelecom LLP (communication services), Neftestroi LLP (construction), Shegendeu LLP (oil well cementation), Zhetybai technological transport LLP (transport services) and Pavlodar oil and chemical plant CJSC, where Mangistaumunaigas OJSC owns 51% shares. In Comment 1 of audit conclusion of NAC Abzal Audit CJSC it is noted alos that (beginning of citation): "In 1999 the Government of Kazakhstan announced its intention to realize state shares and Central Asian Petroleum Ltd. (CAP) (registered in Jakarta, Indonesia - KASE comment) became an owner of 90% shares of MMG (abbreviation by the auditor of Mangistaumuniagas OJSC - KASE comment)" (end of citation). At that according to the register of shareholders as of January 01,2001 30% of voting shares of the company owner of which was Mangistauskii territorial committees on state property management were under nominal holding of RSE Information-stocking center (Almaty, Kazakhstan), 60% - in ownership of Central Asia Petroleum Ltd. Company. Major types of the company's activities - extraction and transportation of oil and gas; oil processing, oil and oil products realization; exploration and exploitation of oil and gas fields. In official list of securities of KASE under category "В" common inscribed shares (KZ1C05020218, trade code - MMGZ) and privileged inscribed (KZ1P05020213, trade code - MMGZp) shares of Mangistaumunaigas OJSC are included.