Auditing report on 2000 financial statements of Karazhanbasmunai OJSC (Kazakhstan)

/KASE, June 22, 01/ - Karazhanbasmunai OJSC (Aktau), in accordance with the listing requirements, provided the Kazakhstan Stock Exchange (KASE) with auditing report of Arthur Andersen (Almaty, Kazakhstan) made on its 2000 consolidated financial statements. Based data of an independent auditor the following are financial and economic results of the issuer's activity as of December 31, 2000 and 1999 (in th. KZT): ------------------------------------------------------------------------- as of as of Change, Indicator 01.01.00 01.01.01 % --------------------------------------- ---------- ---------- -------- Authorized capital (paid) 2,161,251 2,161,251 0 Shareholders' equity 319,414 4,139,601 +1,196.0 Book value of assets 5,180,800 12,075,341 +133.1 Net working capital -4,191,346 641,808 - Accounts receivable (net) 487,997 3,040,004 +523.0 Liabilities, total 4,861,386 7,935,740 +63.2 Bank credits and issued bonds - 4,725,055 - Accounts payable (net) 4,861,386 2,993,406 -38.4 Sales 6,134,635 16,450,017 +168.1 Net income 573,491 4,684,061 +716.8 --------------------------------------- ---------- ---------- -------- Calculated based on the auditor's data: --------------------------------------- ---------- ---------- -------- Return on sales (ROS), % 74.06 80.66 +8.9 Return on equity (ROE), % 179.54 113.15 -37.0 Return on assets (ROA), % 11.07 38.79 +250.4 ------------------------------------------------------------------------- Auditing of Karazhanbasmunai OJSC was made according to Kazakhstani and international accounting standards. Following changes in economic ratios were registered (all figures in tenge unless otherwise indicated): - equity capital grew by 3.8bn or 13 times (growth of fianncal amount of undistributed profit - 3.6bn, reserve capital - 324.2m, decline of revaluation reserve - 70.8m); - asset grew by 6.9bn or 2.3 times, of which fixed assets - 1.7bn, account receivable - 2.6bn, construction in progress - 1.6bn, other assets - 1.0bn; - total liabilities increased by 3.1bn or 63.2% (bank loans and emission of bonds); - attracted funds increased by 4.7bn (bank loans and emission of bonds); - accounts payable - by 1.9bn or 38.4%; - sales - 10.3bn or 2.7 times; - cost of goods sold - 1.6bn or 2 times; - expenses - 3.3bn or 2 times. As a result net income of Karazhanbasmunai OJSC reached 4.6bn or 4.1bn (8.2 times) more than in 1999. In the opinion of auditor, financial statements give a reliable and objective picture of Karazhanbasmunai OJSC financial situation as of December 31, 2000 and 1999, The statements are presented in accordance with the Kazakhstani accounting standards. Coupon bonds of (KZ73BAQLBA36, trade code - KARMb1) Karazhanbasmunai OJSC, on which the first coupon was paid on June 20 of this year, were admitted to the official list of the KASE securities under category "A" on December 8, 2000. Primary activities of the company: development of "Karazhanbas" oil field; extraction, preparation, realization and processing of oil, introduction of thermal methods of oil productivity, construction of wells, purification and processing of crude oil, construction of facilities for oil preparation, exporting marketing and sales of hydrocarbons and hydrocarbon products.