Auditing report on 2000 financial statements of NOC KAZAKHOIL CJSC (Kazakhstan)

/KASE, Sept 4, 01/ - NOC KAZAKHOIL CJSC (Astana) provided the KASE with auditing report of Ernst & Young made on its 2000 consolidated financial statements. Based data of an independent auditor the following are financial and economic results of the activities of the issuer and its subsidiaries (Group) as of December 31, 1999 and 2000 (in th. USD): ------------------------------------------------------------- Indicator 1999 2000 --------------------------------------- --------- --------- Authorized capital (paid) 145,484 187,166 Shareholders' equity 1,704,167 2,015,314 Total assets 3,287,583 3,610,531 Net working capital 164,904 355,281 Accounts receivable, total (net) 914,130 943,435 Long-term accounts receivable (net) 691,054 633,545 Short-term accounts receivable (net) 223,076 309,890 Liabilities, total 1,475,254 1,462,072 Long-term credits 890,821 867,951 Accounts payable 460,879 502,198 Sales 927,645 1,414,631 Cost of goods sold 465,266 503,793 Net income (loss) 108,442 315,122 --------------------------------------- --------- --------- Calculated based on the auditor's data: --------------------------------------- --------- --------- Return on sales (ROS), % 49.8 64.4 Return on equity (ROE), % 6.4 15.644 Return on assets (ROA), % 3.3 8.7 ------------------------------------------------------------- Auditing was conducted by Ernst & Young in compliance with the International Accounting Standards. Since the currency used in the financial statements is the U.S. dollar, then the transactions and the balance, which have not been reflected in U.S. dollars, were recalculated in U.S. dollars using the time value method. Consolidated financial statements include following joint ventures, which have been consolidated based on the stake of NOC KAZAKHOIL CJSC in those companies: Uzenmunaigas (stake in 1999-2000 - 99.0%), Kazakhoil Emba (stake in 1999-2000 - 85.0%), Embavedoil (stake in 1999-2000 - 52.7%), Kazakhoil-Telf (stake in 1999-2000 - 69.0%), Atyrau refinery (stake in 2000 - 86.5%, in 1999 - 86.0%), Kazakhstancaspishelf (stake in 1999- 2000 - 90.0%), Kazakhoil headquarters (stake in 1999-2000 - 100.0%), Kazakhoil-Security (stake in 1999-2000 - 99.0%), Aksaigasservice (stake in 1999-2000 - 82.4%), Kazakhoil-Petrol (stake in 1999-2000 - 100.0%), Kazakhoil-Service (stake in 2000 - 51.0%, in 1999 - 100.0%), Kazakhoil- Kurylys (stake in 1999-2000 - 100.0%), Kazakhoil-Products (stake in 2000 - 100.0%, in 1999 - 50.0%), Kazakhoil-Trans (stake in 1999-2000 - 100.0%), Tenge JV (stake in 2000 - 69.0%, in 1999 - 50.0%), Kazakhoil-Burenie (stake in 2000 - 100.0%). In the opinion of the auditor, consolidated financial statements give true picture of financial situation of the company in all essential aspects as of December 31, 2000 and 1999, as well as results of income and cash flow statements in compliance with International Accounting Standards as of indicated dates. However, the auditor draws the attention to the fact that consolidated financial statements had been prepared based on the assumption of uninterrupted work of the company. Reality of this assumption depends on the influence exerted on the company to continue working if the Government of Kazakhstan uses its right to include or exclude any of the companies, which has been entered in this or previous periods into the financial statements based on the value set by the Government. Based on clause 1 of the comments to the auditing report, NOC KAZAKHOIL CJSC, based on current legislature, will receive 25% stake in all newly issued licenses. It is the strategy of the Government in developing the Group as the main organization controlling the stake of the Government in oil and gas sector of Kazakhstan. Coupon bonds of NOC KAZAKHOIL CJSC (KZ72LAG56A20, trade code - KZOLb) were admitted to the official list of the KASE securities of category "A" on May 19, 2000. Issue volume - $25.0m, face value - $100, coupon rate - 9% APR, payment frequency - 2 times a year, circulation term - 2 years.