Auditor's report on financial statement of Exploration Extraction KazMunayGas JSC (Kazakhstan) for 2004

/IRBIS, Galina Tsalyuk, August 2, 05/ - Exploration Extraction KazMunayGas JSC (Astana, hereinafter - company), whose common shares are circulating in the official "A" listing category of Kazakhstan stock exchange (KASE), has presented to KASE auditor's report made by Ernst & Young (Almaty), which was made on the company's consolidated financial statement for 2004 prepared in compliance with Kazakhstan accounting standards (KAS). Result of the company's financial and economic activity in 2004 is as follows, according to audited statement (th. KZT, unless otherwise specified): -------------------------------------------------------------------- as of as of Indicator Dec 31, 03 Dec 31, 04 ------------------------------------------ ----------- ----------- Authorized capital (paid) 10,340,269 11,765,732 Shareholders' equity 41,361,075 47,062,927 Total assets 224,981,223 260,002,241 Net working capital 26,279,612 55,579,715 Accounts receivable 28,947,247 47,802,387 Liabilities, total 53,607,615 126,332,334 Borrowed loans 19,738,936 67,229,462 Accounts payable 26,399,082 45,912,818 Minority interest 1,206,939 1,225,214 Sales volume 183,391,447 250,017,543 Prime cost of sales 66,307,062 86,043,983 Net income for the year 25,937,694 30,949,351 ------------------------------------------ ----------- ----------- Calculated according to audited statement: ------------------------------------------ ----------- ----------- Return on sales (ROS), % 63.84 65.58 Return on equity (ROE), % 11.53 11.90 Return on assets (ROA), % 9.27 7.99 Earnings (loss) per share (EPS), KZT 689.56 720.98* Book value of one share, KZT 5,439.44 5,524.57 -------------------------------------------------------------------- * - without dividends on privileged shares. Audit of the company's consolidated financial statement for 2003-2004 was conducted by Ernst & Young in compliance with Kazakhstan auditing standards. Consolidated financial statement for 2004 includes statement of the company and its 34 subsidiary organizations, for 2003 - of the company and its 50 subsidiary organizations (hereinafter - Group). In the opinion of Ernst & Young consolidated financial statement in all essential aspects represents authentic and objective picture about consolidated financial position of the Group as on December 3, 2004, consolidated incomes and expenses and cash flow for the year, which ended by the mentioned date, in compliance with KAS. Company's primary activities - exploration and survey works, development of oil, gas and gas-condensate fields; production and transportation of oil and gas; initial oil preparation and gas refining, sale of hydrocarbon raw stuff and products of its refining. [2005-08-02]