27 Apr 2018 07:21
2017 Annual Report Draft
Table of contents
About this report
Key performance indicators
Key events
About our business
Origins
Mission, strategy, values and goals
Strategy
Values
Key objectives
Assets structure, relationship with holding company, subsidiaries and associates
Asset ownership structure
Key exploration and production interests
Social programmes
Share price performance
About Kazakhstan
Key facts
Kazakhstan's oil and gas sector
Oil and condensate production
Factors contributing to higher production
Refining and transportation
Gas production and export
Business model
Our key attributes
Three business areas
Four objectives
Chairman's statement
A brief history of KMG EP as a public company (reversal)
Repurchase of minority stakes and delisting
Chief Executive Officer's statement
2017 milestones
Q1
Q2
Q3
Q4
Key operating and financial indicators
Market overview
Operational activities overview
Oil production
Crude oil exports and domestic sales
Crude oil processing
Reserves
Exploration and appraisal
Capital expenditure overview
Financial overview
Taxation
Overview of JV's and associate operations
Liquidity and capital resources
Risk factors
Corporate social responsibility
Health, safety and environmental protection
Environmental protection
Social responsibility
Business conduct
Corporate governance
Board of Directors
Members of the Board of Directors and their biographies
The corporate governance codes of Samruk-Kazyna JSC and KMG EP
Directors' responsibility statement
Management Board structure
Responsibility of the Board of Directors and Management Board
Committees of the Management Board
Information about taxation in the UK
Consolidated financial statements for 2017
Information for shareholders
Contact information
Reference information
http://www.rns-pdf.londonstockexchange.com/rns/3541M_-2018-4-27.pdf
About this report
The purpose of this Annual Report is to inform readers about the material aspects of JSC KazMunaiGas Exploration Production's (KMG EP, or the Company) business. With this Report, the Company aims to help investors and stakeholders understand how it forms its strategy, manages its operations, achieves its financial performance, ensures the long-term sustainability of its business and develops value for stakeholders and interested parties. It addresses the following questions:
· What do the Company, its subsidiaries, associates and joint ventures do?
· What are the circumstances under which it operates?
· How does the Company's corporate governance structure maintain its ability to create value for stakeholders in the short, medium and long term?
· What is the Company's business model?
· What are the main risks and opportunities influencing the organisation's ability to create value for stakeholders in the short, medium and long term, and how are these managed?
· What are the Company's goals, aims and objectives, and how does it intend to achieve them?
· To what extent has the organisation met its goals, aims and objectives for the reporting period, and what has been the effect on Company valuation for stakeholders?
· What are the key challenges and uncertainties the organisation is likely to face in pursuing its strategy, and what are the potential implications for its business model and future performance?
Key performance indicators
2017 | 2016 | % change | |
Total production (thousand tonnes)* | 11,868 | 12,155 | -2 |
OMG and EMG production (thousand tonnes) | 8,320 | 8,387 | -1 |
Net income (million tenge) | 195,359 | 131,576 | +48 |
Basic and diluted EPS (thousand tenge) | 2.86 | 1.93 | +48 |
EBITDA (million tenge)** | 259,930 | 206,850 | +26 |
Operating margin (%)*** | 19% | 22% | -3pp |
Operating cashflow before working capital adjustments(million tenge) | 212,611 | 134,736 | +58 |
Net cash position at the end of the period (US$ million) | 4,028 | 3,516 | +15 |
*Including proportionate share of equity-accounted entities and CCEL.
**EBITDA is calculated by adding back the share of income in equity-accounted entities, financial income and non-cash expenses, such as depreciation and amortisation, to the Company's operating profit.
***Operating profit does not include the profit contribution of equity-accounted entities, CIT expenses, finance charges, impairment charges, foreign-exchange gains/losses and other non-operating charges, or losses from the purchases of affiliates.