KazTransOil NOTC CJSC (Kazakhstan): financial ratios

/KASE, Oct 20, 00/ - Following is the brief reference to the main indicators of financial and economic activities of KazTransOil NOTC CJSC (Astana) compiled on the basis of Listing Commission conclusion of the Kazakhstan Stock Exchange (KASE). The reference is published in connection with inclusion of the company's bonds into category "A" of the officials list of KASE securities. FINANCIAL STATEMENTS DATA SUBMITTED BY THE ISSUER Table below presents main financial indicators of the KazTransOil. The data compiled in accordance with the Kazakhstan Accounting Standards (KAS) on the basis of balance sheet, income and cash flow statements for 1997- 1999 (except for 1997 when the company was formed) and some intermediate data for 2000. The financial statements are not consolidated as some formal procedures still being executed. They include the issue of transferring daughter companies state blocks to the authorized capital of KazTransOil. These shareholdings will be later consolidated with KazTransOil statements. Data from the financial statements, presented by the issuer, are shown below (in th. KZT, unless otherwise indicated): as of as of as of as of Ratio Jan 01, Jan 01, Jan 01, July 01, 1998 1999 2000 2000 ----------------------------------------------------------------------------- Authorized capital (paid-up) 19,202,862 19,343,214 19,406,071 19,406,071 Shareholders' equity 21,262,739 20,421,533 25,149,100 102,897,364 Book value of the assets 24,920,876 24,531,716 30,877,099 122,190,729 Net working capital N/A 2,695,460 3,654,471 -5,931,309 Accounts receivable (net) 4,758,593 4,035,084 4,551,465 6,991,285 Total liabilities 3,658,137 4,110,183 5,727,999 19,293,365 Loans received 324,813 471,299 55,347 570,467 Accounts payable 2,957,598 2,999,852 5,085,762 18,156,216 Sales (services offered) 9,825,328 12,543,605 17,698,345 14,514,203 Net income (loss) 230,256 920,814 5,639,812 1,557,440 Return on sales (ROS), % 10.79 41.81 42.98 24.24 Return on equity (ROE), % 1.08 4.51 22.43 1.51 Return on assets (ROA), % 0.92 3.75 18.27 1.27 ----------------------------------------------------------------------------- Four time growth in the shareholders equity from July 01, 2000 to end year of 1999 was caused by market revaluation of fixed assets made by the American Appraisal Inc on January 2000. The property related to social purpose assets, net working capital and intangible assets was excluded from valuation. The estimated property consisted of real estate including buildings and constructions (pipe-lines), machinery and equipment, and incompleted construction works. The increase of revalued property totaled: for buildings and constructions - KZT694.4 mln, machinery and equipment - KTZ40.1 bln, transporting carriers - KZT44.7 bln. As of March 10, 2000 the validated market value of fixed assets (including construction in progress) estimated by American Appraisal Inc. amounted $811.0 mln. AUDITOR'S CONCLUSION DATA The table below is compiled by KASE experts on the basis of Arthur Andersen auditor's conclusion. In this case data of KazTransOil NOTC CJSC financial statements look as follow (KZT, thousands, unless otherwise specified): Ratio as of as of as of Jan 01, 1998 Jan 01, 1999 Jan 01, 2000 ---------------------------------------------------------------------- Authorized capital (paid-up) 19,202,862 19,343,214 19,406,071 Shareholders' equity 21,263,025 20,737,029 25,149,100 Book value of the assets 24,927,125 24,532,340 30,877,099 Net working capital 3,216,820 3,880,569 4,546,459 Accounts receivable (net) 4,765,562 4,030,490 4,536,870 Total liabilities 3,664,100 3,795,311 5,727,999 Loans received 324,814 471,299 55,347 Accounts payable 1,792,200 2,347,309 4,666,742 Sales (services offered) N/A 8,986,137 17,698,345 Net income (loss) N/A 914,062 5,639,835 Return on sales (ROS), % N/A 17.77 42.98 Return on equity (ROE), % N/A 4.41 22.43 Return on assets (ROA), % N/A 3.73 18.27 ---------------------------------------------------------------------- As the company was founded in May 1997 the Arthur Andersen examined only balancing figures for that year. Concluding balance for year 1997 the auditor did not confirm physical inventories for a total of KZT1.9 bln as of Dec 31, 1997. The auditor did not have opportunity to check it up. It noted the absence of reserves on trade liabilities and other accounts receivable, which were overdue. According to the auditor's conclusion over the KazTransOil NOTC CJSC financial statements gives a reliable and accurate picture of the company's financial situation as of Dec 31, for 1997-1999 in all essential aspects including cash flow and income statements. The financial statements comply to Kazakhstan and International accounting standards.