AKIPRESS.COM - JSC KazMunaiGas Exploration Production held its regular Board of Directors meeting on April 12, and the Board recommended a dividend payment on 2016 earnings, approved the revision of the 2017 capital expenditure plan and approved increase of processing fees starting from 1 April 2017. 

Based on 2016 results the Board has recommended a dividend per ordinary and preferred share of KMG EP at 289 Tenge (including taxes withheld in accordance with the legislation of Kazakhstan) to be paid from 2016 earnings. This is equivalent to approximately 19.8 bn Tenge (US$63m), or 15% of the Company’s net profit for 2016. This decision is subject to approval by the shareholders at the Annual General Meeting of Shareholders (“AGM”) on 23 May 2017.

If approved, the payment of the 2016 annual dividend will be made starting from 3 July 2017 to shareholders of record as of 2 June 2017 (close of the business day).

The Board of Directors approved an increase in capital expenditure for 2017 to 133 billion Tenge (US$369m), which is 14.1 billion Tenge or 12% more compared to the previous guidance. Additional investments are aimed at production efficiency activities, in particular, such as sidetracking and deepening of production wells, acquisition of fixed assets, construction and maintenance works, improvement of social conditions, and investments associated with gas utilization to mitigate environmental risks.

As per the approved budget for 2017 and the Company’s previous guidance, the Board has agreed an increase of processing fees starting from 1 April 2017. The processing fee will stand at 24 512 Tenge per tonne at Atyrau Refinery (20 501 Tenge previously) and 16 417 Tenge per tonne at Pavlodar Refinery (14 895 Tenge previously).

KMG EP is among the top three Kazakh oil producers based on the 2016 results. The overall production in 2016 was 12.2 million tonnes (245 kbopd) of crude oil, including the Company’s share in Kazgermunai, CCEL and PKI. The Company’s volume of proved and probable reserves excluding shares in the associates, at the end of 2015 was 193 million tonnes (1,409 mmbbl). The Company’s shares are listed on the Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn at its IPO in September 2006.