Report of Board of join-stock company SHNOS (Kazakhstan) for 1998

/KASE, Sep.21, 99/ - SHNOS (Shimkent, official list of securities, category "A") according to the listing requests has presented the Kazakhstan Stock Exchange (KASE) report about results of work in 1998 (to annual General Meeting of shareholders, which was held on July 26, 1999) and also information about dividends payment in 1998. The report informs that in 1998 Kumkol'skoe deposit remained the main SHNOS's source of oil, which share in the total volume of raw material delivered has made 82.24% or 2,982,500 tons. HURRICANEKUMKOLMUNAI is the first on the list having 75.60% (2,741,800 tons), the second is AKTOBEMUNAJGAZ (including oil delivery - 6.51% or 236,100 tons, gas condensate - 5.44% or 197,000 tons), other suppliers have 12.45% (451,200 tons). The report points that, despite of world crisis in a petroleum industry, company in 1998 increased processing of raw material to 3,654,400 tons against 3,475,600 tons in 1997. In 1998 the factory has changed the processing structure, considerably increasing a share of purchased raw material in total volume of processing. In result the profitability of a floating capital was considerably increased and the own petroleum market (central regions of Kazakhstan, north of Kyrgyzstan) was formed. In the past year SHNOS invested 18 million in reconstruction with the purpose of range and quality of production improvement and development of infrastructure. Due to perfection of technology and strengthening of the technological discipline the efficiency of raw material processing was increased: the waste was reduced from 2.5% to 1.79% (from total volume of raw material), the general output was increased from 95.65% to 96.32%. The output of own (certificate) commodity production in1998 was by 988.5 tons more than in 1997, including: petrol - by 196.600 tons, kerosene - by 14,500 tons, diesel fuel - by 348,700 tons, liquefied gas - by 25,200 tons, black oil - by 403,400 tons. Except it there were some changes in the output structure: Kerosene production was reduced, diesel fuel - increased; As a result of modernisation, SHNOS have begun to manufacture the new marks of petrol: firm AI-85 and high-octane AI-93 and AI-95; As a result of putting into operation the dewaxing plant SHNOS have begun to manufacture the winter diesel fuel of the mark Z-02 with freezing temperature of -35С0. According to the submitted information on dividends payment on September15, 1999 the total sum of accrued dividends in 1998 (3,945 preferred shares) has made 394,500 tenge. The payments on the indicated date were not made.