Joint Stock Company "National Company "KazMunayGas" (KMGZ) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 increased by 13.6% year-over-year to $4,991 million (2,480,916 million tenge), driven by higher sales of crude oil, gas, and refined products.

• EBITDA rose 36.5% to $1,559 million (774,782 million tenge), with the exploration and production segment contributing 74% of total EBITDA.

• Net profit nearly doubled year-over-year, reaching 373,144 million KZT, supported by higher oil prices and improved operational efficiency.

• Free cash flow turned negative at -$157 million, compared to $555 million in 1Q 2025, mainly due to increased capital expenditures.

• Total comprehensive loss was 434,818 million tenge, mainly due to significant negative currency translation effects.

Financial highlights

• Oil production fell 12% year-over-year to 5.6 million tonnes (472 kbopd); gas production dropped 18.2% to 2.3 billion m³.

• Oil transportation volumes remained stable at 20.8 million tonnes (-0.8% year-over-year); refining volumes decreased 2.8% to 5.0 million tonnes.

• Gross debt increased 5.1% to $7,320 million, while net debt rose 61.2% to $1,196 million as of March 31, 2026.

• Cash and cash equivalents at period end were 1,687,726 million tenge, up from 1,198,185 million tenge at year-end 2025.

• Total assets stood at 19,003,156 million tenge, with equity attributable to shareholders at 12,401,778 million tenge.

Outlook and guidance

• Management expects continued operational stability and highlighted access to major demand markets in Europe and China, with ongoing development of new fields.

• Forward-looking statements caution that actual results may differ due to market and operational uncertainties.

• The estimated average annual income tax rate for 2026 is 22%, down from 33% in 2025.