Kazakhstan to reevaluate fixed assets of national companies
/IRBIS, May 30, 01/ - According to REUTERS, Kazakhstan government
intends to reevaluate fixed assets of national state companies with a view to
acquire exact information on their market value.
Mr. Akhmetov, vice-premier of the government reported that transparency of
national companies require real evaluation of assets.
The national companies are 100% owned by the government. As a rule, they
are monopolistic, as for instance, rail road Kazakhstan Temir Joly or, nuclear
The real valuation of companies is also needed to learn cost and price
formation structure of goods and services.
"From this point, we would come to understanding of investment policy of
national companies," reported Mr. Akhmetov.
At the meeting with the government, officials from national companies
themselves expressed interest in revaluation of assets. The vice-president of
Kazakhoil, Mr. Abulgazin said that value of fixed assets affects capital
He noted that the capital investments are made out of depreciation and net
profit. As the fixed assets are undervalued and depreciation is low, then, the
net profit are becoming a main source of capital investments.
Kazakhoil has planned to increase oil production from 6.1m to 9.9m tons in
Mr. Abulgazin reported that Ernst & Young has conducted valuation of
affiliated Uzenmunaigas and found out that company's assets were
underestimated 12.9 times.
The same company revalued Kazakhoil-Emba (another affiliated company).
The figures showed five-time underestimation.
The executive director of Kazakhstan Temir Joly informed that that Ernst &
Young would prepare report by June 15. However, preliminary data show
that assets' value was understated 1.5 times.