/IRBIS, September 5, 2011/ - Net profit of JSC "Exploration and Production KMG" in the first half of 2011 increased by 14%, according to today's press service of the company.

Reported net profit amounted to 114 billion tenge (783 million U.S. dollars) and earnings per share - 1581 tenge (U.S. $ 1.8 per GDR), an increase of 14% and 15%, respectively, compared to the same period in 2010.

The company's specialists associate the results with an increase in oil prices, partially offset by lower production resulting from illegal protests, an increase in operating taxes and operating expenses, selling expenses and administrative costs, the report said.

For information, revenues from the sales of KMG EP in the first half of 2011 rose by 35% over the same period of 2010 and amounted to 400 billion tenge (2,740 million U.S. dollars). This increase was due to higher average selling price of crude oil by 41% - from 67,574 tenge per ton (63.47 U.S. dollars per barrel) to 95,035 Tenge per tonne (90.03 U.S. dollars per barrel), partially offset by lower exports as a result of illegal protest.

In the first half of 2011, KMG EP including shares in the LLP "JV "Kazgermunai "(hereinafter - Kazgermunai, KGM), CCEL (hereinafter - Karazhanbasmunai, CCEL) and "PetroKazakhstan" (Hereinafter - CRP) produced 6311 tons oil (258 thousand barrels per day) to 216 thousand tons or 3% less than during the same period of 2010.

Taxes other than income taxes in the first half of 2011 amounted to 162 billion tenge (1109 million U.S. dollars), up 95% over the same period in 2010. The increased costs of operating taxes due to the increased cost of paying the rent tax and the tax on mineral extraction (MET) as a result of growing oil prices, as well as the costs of the export customs duty (ECD), launched August 16, 2010 in U.S. $ 20 per ton and increased to $ 40 per tonne from January 1, 2011. Also, in the second quarter of 2011, the Company recorded a $ 15 billion tenge (U.S. $ 105 million) costs of ECD (the principal amount, not including interest on late payment of ECD, assessed in the article "Penalties and interest") in connection with the negative Supreme Court's decision in its lawsuit concerning a dispute regarding payment of ECD, which should not apply to quantities of oil in 2009, which was paid in rent tax (for details see press release of KMG EP on 28 June 2011).

[2011-09-05]