Audited financial statements of CNPC-Aktobemunaigas OJSC (Kazakhstan) for 2003

/IRBIS, Galina Tsalyuk, November 8, 04/ - CNPC-Aktobemunaigas OJSC (Aktobe), whose simple shares are circulating in Kazakhstan stock exchange's (KASE) "А" listing category, presented KASE auditor's report compiled by PricewaterhouseCoopers (Almaty) on the company's consolidated financial statement for 2003. Audit was compiled according to international financial reporting standards. Result of the company's consolidated financial and economic activity as of December 31, 2003 is presented by the following indexes, in accordance with the auditor's data (in th. KZT, unless otherwise specified): --------------------------------------------------------------------------- Indicator 2002 2003 ------------------------------------------------- ----------- ----------- Authorized capital (paid-up) 14,835,638 14,835,638 Shareholders' equity 63,432,630 91,909,845 Total assets 137,509,599 192,565,586 Net working capital -16,203,890 -16,045,304 Accounts receivable (net) 12,345,937 23,585,773 Liabilities, total 74,076,168 100,654,985 Borrowed loans (including eurobonds) 26,352,666 39,195,210 Accounts payable 23,636,069 26,760,067 Reserves for restoration of the site 1,079,654 1,618,187 Income from sale 97,220,038 121,514,582 Cost price of goods sold 28,791,608 35,854,103 Net income 26,262,412 36,029,434 ------------------------------------------------- ----------- ----------- It's been calculated according to auditor's data: ------------------------------------------------- ----------- ----------- Return on sales (ROS), % 70.39 70.49 Return on equity (ROE), % 41.40 39.20 Return on assets (ROA), % 19.10 18.71 Net income per 1 simple share (EPS), tenge 2,854.86 3,803.12 Book value of a share, KZT 6,413.54 9,292.81 --------------------------------------------------------------------------- Audit of the company's consolidated financial statement (hereinafter - Group), prepared by KSA, conducted by PricewaterhouseCoopers company in accordance with Kazakhstan audit standards. Consolidated statements of the Group for 2003 includes financial statements of CNPC-Aktobemunaigas OJSC and two daughter companies - ZhGTES LLP (Aktobe, 5.1% stake of participation in authorized capital) and CNPC- Aktobemunaygas Capital B.V. (Rotterdam, Netherlands Kingdom, 100% participation stake in authorized capital) In the report auditor pays attention to the following: Specific part of company's fixed assets, initially reflected by initial cost, in period from January 01, 1993 to January 01, 1997 periodically revaluated in accordance with special coefficient, determined by Government committee of the Republic of Kazakhstan on statistics, that in opinion of auditors does not comply with requirements of KSA 6. Difference between cost of fixed assets, reflected in consolidated financial accounting balances, and their cost, required for compliance of KSA 6 cannot be precisely determined and may be essential. The company does not make evaluation of workable proved extractive reserves of oil and gas, quantity of which is used for calculation of amortization and balance cost of oil and gas assets, and also calculation of reserve for restoration of site with attraction of independent experts. In view of lack of independent reserves evaluation from auditors there was no opportunity to be certain that their evaluation is correct by company's management and to determine effect of influence of possible differences in evaluation of reserves on company's financial statements. In opinion of PricewaterhouseCoopers, regardless influence of corrections, the necessity in which could appear taking into account the above-mentioned things, the consolidated financial statements for sure in all essential aspects reflect financial condition of CNPC-Aktobemunaigas OJSC and its subsidiary companies as of December 31 of 2003, results of their financial and economic activities and cash flow for the year, which ended by that date, in compliance with KAS. Company's primary activities: mine workings and extraction of hydrocarbon raw stuff; drilling of exploration, structure and operational wells; exploration, survey and exploitation of oil and gas deposits; refining of oil and gas, transportation and sale of oil, gas and products of their refining; receiving and sale of electrical and heat energy; building of pipelines and pipeline transportation; Mine workings and extraction of drilled mineral resource and mineral resource of joint origin, their selling and other activities in compliance with the Company's charter and licenses, which the company possesses. [2004-11-08]