Auditor's report on financial statement of Mangistaumunaigas JSC (Kazakhstan) for 2004

/IRBIS, January 30, 06/ - Mangistaumunaigas JSC (Aktau, hereinafter - company), whose shares are circulating in Kazakhstan stock exchange's (KASE) official "B" listing category, has presented to KASE auditor's report compiled by KPMG Janat (Almaty) on the company's consolidated financial statement for 2004, which was made in compliance with Kazakhstan accounting standards (IAS). According to audited data, result of the company's financial and economic activity in 2003-2004 is as follows (th. KZT, unless otherwise specified): -------------------------------------------------------------------- as of as of Indicator Dec 31, 03 Dec 31, 04 -------------------------------------------- ----------- ----------- Authorized capital (paid-up minus withdrawn) 10,892,027 10,892,027 Shareholders' equity 57,245,961 144,805,159 Total assets 134,273,971 261,856,627 Net circulating assets 33,770,494 74,588,192 Accounts receivable (net) 43,193,240 102,853,493 Deferred tax assets 2,173,853 1,526,608 Liabilities, total 72,589,490 113,880,016 Accounts payable 39,266,723 76,968,165 Minority interest 4,438,520 3,171,452 Sales volume 168,071,081 235,402,122 Cost of goods sold 84,372,426 122,389,993 Net income of the year 14,850,990 87,668,144 -------------------------------------------- ----------- ----------- Calculated by audited data: -------------------------------------------- ----------- ----------- Return on sales (ROS), % 49.80 48.01 Return on equity (ROE), % 25.94 60.54 Return on assets (ROA), % 11.06 33.48 Net earnings per 1 shares (EPS), KZT 1,503.53 8,929.97 Balance cost of 1 shares, KZT 5,255.77 13,294.60 -------------------------------------------------------------------- Price earnings ratio (P/E) was not calculated in connection with absence of deals on the company's common shares. Audit of the company's consolidated financial statement and its subsidiary organizations (hereinafter - Group) was made by KPMG Janat in compliance with international auditing standards. Consolidated financial statement of the Group for 2004 include financial statement of the company and its 14 subsidiary organizations (for 2003 - 12 subsidiary organizations), including Densaulyk LLP (Pyatigorsk, the company owns 100% stake in paid authorized capital, resort activity), MangistauEnergoMunai LLP (Aktau, 100%, electrical energy distribution), Munaitelecom LLP (Aktau, 100%, communications facilities), Nauchno- proizvodstvennyi tcentr LLP (Aktau, 100%), Oil Construction Corporation LLP (Aktau, 100%, construction), Oil Transport Corporation LLP (Aktau, 100%, transportation), Oil Service Company LLP (Aktau, 100%, drilling), ZSPT LLP (Aktau, 100%, production of pipelines), MMG-3 LLP (Aktau, 100%, oil and gas production), JV Stepnoi Leopard LLP (Uralsk, 95%, oil and gas production), Atyraumunaigas JSC (Atyrau, the company own 100% of floated shares, oil and gas production), Snow Leopard International Inc. (Bahamian islands, 95%, stake in oil and gas), Snow Leopard Resources (Bermuda islands, 95%, stake in oil and gas), Pavlodar petrochemical plant JSC (Pavlodar, 54.84%, oil processing). In their report firm KPMG Janat draws attention that information about connected parties, including disclosure of information about relations, operations and policy of pricing with connected parties, is disclosed in the company's financial statement not in full volume. In the opinion of KPMG Janat excluding omission of information, given above, consolidated financial statement in all significant aspects precisely reflects the Group's financial position as of December 31, 2004, and also results of its activity and cash flow for the year, ended by the mentioned date in compliance with the KAS. The company's primary activities: production and transportation of oil and gas; petroleum refining, sle of oil and products of its refining; exploration and development of oil and gas fields. [2006-01-30]