Net profit of Kazakhstan’s oil company KazMunaiGas Exploration Production (KMG EP) totaled 0.9 billion Kazakh tenges ($3 million) in the first quarter of 2016 compared with 1.6 billion tenges ($9 million) in the same period of 2015, said the company Apr. 28.
“The year on year decline in net profit is largely due to a decrease in the share of results of associate and joint ventures and an increase in income taxes, which was partially offset by the reduction of taxes other than on income,” explained the company.
Income taxes include an increase worth 3.8 billion tenges in deferred taxes, according to KMG EP.
The company’s revenue was 121 billion tenges ($341 million) in the first quarter of 2016, which is up by 4 percent compared to the same period in 2015. This is the result of a 92-percent increase in the tenge – US dollar exchange rate, which offset a 37-percent Brent price decrease and a lower share of export volumes.
Net cash flows from KMG EP’s operating activities for the first quarter of 2016 was 31 billion tenges ($87 million), against 27 billion tenges ($148 million) in the same period in 2015.
The company’s production expenses were 55 billion tenges ($154 million) in the first quarter of 2016, which is by 6 percent less than in the first quarter of 2015. This was mainly due to an 11-percent reduction in employee benefit expenses compared to the same period in 2015.
KMG EP is in the top-3 of oil producers in Kazakhstan, according to the results of 2015.