/KASE, February 26, 09/ - KazMunaiGas Exploration Production (Astana),
shares of which are present in Kazakhstan Stock Exchange (KASE) official list,
provided to KASE the press release of February 25, 2009 on the following:
Quotation start
Taking into account various inquiries received by JSC KazMunaiGas Exploration
Production (the "Company" or "KMG EP") in connection with the recent newsflow
regarding business environment in which the Company operates, KMG EP
provides this trading update.
Economic conditions in Q4 2008
The fall of the world oil price that had started in the middle of 2008 continued
into Q4 2008. The average price for Brent in Q4 2008 was $54.91/bbl compared with
$114.68/bbl in Q3 2008 and an average of $110.86/bbl for the first nine months of
2008. In December 2008, the price for Brent moved below US$40/bbl. From 11
October 2008 until the end of the year, the oil exported from Uzenmunaigas and
Embamunaigas was subject to an export duty at the rate of US$203.8 per tonne
(approximately $28/bbl), compared to the previous rate of US$109.91
(approximately US$15/bbl) while production costs in Q4 2008 were higher than in
the previous quarter due to seasonal factors and inflation.
As a result of the combination of these factors, profitability in Q4 2008 was
significantly lower than in the previous quarter, and negative in certain periods.
Among the factors that contributed positively in Q4 2008 were significant
financial income from KMG EP's financial assets, return on investment in CCEL, as
well as the Company's share in the profits of Kazgermunai (50% owned by KMG EP),
where, according to the terms of the Kazgermunai's subsoil use contract, export
oil was not subject to the export duty in 2008.
Contact information:
KMG EP, Public Relations (+7 7172 97 7600)
Michael Dorofeyev
e-mail: pr@kmgep.kz
KMG EP, Investors Relations (+7 7172 97 7971)
Asel Kaliyeva
e-mail: ir@kmgep.kz
Pelham PR (+44 203 178 44 18)
Elena Dobson
e-mail: Elena.dobson@pelhampr.com
Quotation end
The press release full version is available on KASE website:
- In Russian at address
http://www.kase.kz/files/emitters/RDGZ/rdgz_reliz_250209.pdf
- In English at address
http://www.kase.kz/files/emitters/RDGZ/rdgz_reliz_250209e.pdf
[2009-02-26]