Joint Stock Company "National Company "KazMunayGas" (KMGZ) Q2 2024 earnings summary

Executive summary

• Revenue rose 8% year-over-year to $9.44 billion, driven by higher oil prices and sales volumes.

• Net profit increased 12.5% to 550 billion KZT, supported by revenue growth and higher interest income.

• Free cash flow surged 180% to $1.35 billion, mainly due to higher dividends from JVs and lower capex.

• Oil and gas condensate production grew 1.1% year-over-year to 12.0 million tonnes.

• Adjusted net profit (excluding share in profit of JVs and associates) rose 124.5% to 591 billion KZT.

Financial highlights

• EBITDA declined 12% year-over-year to $2.18 billion, mainly due to lower refining and upstream segment results.

• Gross debt increased 6.7% to $8.5 billion, while net debt decreased 4.4% to $3.34 billion as of June 30, 2024.

• Dividends received from JVs and associates grew 77% year-over-year to $689 million.

• Capital expenditures fell 6.6% to $627 million.

• Book value per share increased 2% to 15.955 KZT.

Segment performance

• Upstream EBITDA fell to $1.66 billion (76% of total), with lower JV/associate profit contributions.

• Midstream EBITDA rose to $279 million (13% of total), while downstream EBITDA dropped to $420 million (19% of total).

• Oil transportation volumes rose 6.2% to 41.7 million tonnes.

• Hydrocarbon refining volumes dropped 11.9% to 8.9 million tonnes, mainly due to maintenance and delayed unit launches.

• Share in profit of JVs and associates fell 32.9% due to lower Tengizchevroil profits.