AMSTERDAM, THE NETHERLANDS--(Marketwire - Mar 18, 2013) -
ZHAIKMUNAI MORE THAN DOUBLES REVENUE AND EBITDA IN 2012
Amsterdam, 18 March 2013. Zhaikmunai LP ("Zhaikmunai"), the oil and gas
exploration and production enterprise with assets in north-western
Kazakhstan, today communicates its full-year financial results for the
year ended 31st December 2012.
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2012 KEY HIGHLIGHTS
- Total production (crude oil and GTF products) almost tripled in
2012 to 13,520,040 boe (182% increase);
- Revenue more than doubled in 2012 to USD 737 million (115%
increase);
- EBITDA more than doubled in 2012 to USD 460 million (133%
increase);
- Net income doubled in 2012 to USD 162 million (98% increase);
- Balance sheet remained very strong in 2012 with USD 251 million in
cash and equivalents (93% increase).
Frank Monstrey, Chairman of Zhaikmunai commented:"2012 has been a landmark
year for Zhaikmunai. I am very proud of the
success our management team has achieved with the completion of our
first phase of development. The Company is now significantly de-risked
from both an operational and a financial perspective. Zhaikmunai today
finds itself in a unique position within the industry as it combines
important cash generation with significant production growth over the
coming years. We now much look forward to doubling production in
addition to increasing the potential of our assets through our
appraisal and development programme. We have taken our first steps into
acquisitions in 2012 and we will continue to look for the best possible
ways to further enhance shareholder value moving forward."
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FINANCIAL HIGHLIGHTS
All figures in USD million unless otherwise stated
FY 2012 FY2011 Change YoY
Revenue 737.1 342.6(1) + 115%
EBITDA 460.3 197.4 + 133%
EBITDA Margin 63% 58% + 8%
Cash Capital Expenditures (excl. VAT)(2) 255.4 133.7 + 91%
Cash and Equivalents 251.4 128.5 + 96%
Net Debt 401.1 321.5 + 26%
Net Income 162.0 81.6 + 99%
Average Brent crude oil price on which 107.4 106.9 + 0%
Zhaikmunai based its sales (USD/bbl)
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(1) In 2011 accordance with IFRS, sales from GTF test production were
not included in the Company's revenue but were offset against capital
expenditure (CIP). 2011 cumulative sales of GTF test production
(stabilised condensate, LPG and dry gas) amounted to USD 41.7 million.
Reported revenue of USD 300.8 million plus test production of USD 41.7
million totalled USD 342.6 million in FY2011.
(2) "Cash capital expenditures (excl. VAT)" for operations refer to
actual net cash spent on capital expenditures and constitute a good
CAPEX indicator. "Net cash used in investing activities" is an IFRS
term based on indirect cash flow methodology. In 2012, this line item
of USD 270.6 million includes USD 50.0 million deposit (included in the
total cash and equivalents amount of USD 251.4 million).
Revenue increased by USD 394.5 million, or 115%, to USD 737.1 million
in the year ended 31 December 2012 from USD 342.6 million in the year
ended 31 December 2011 primarily due to the additional revenue
generated by the increased production from the Gas Treatment Facility.
(In accordance with IFRS, sales from GTF test production were not
included in the Company's 2011 revenue but were offset against capital
expenditure (CIP). 2011 cumulative sales of GTF test production
(stabilised condensate, LPG and dry gas) amounted to USD 41.7 million.
Reported revenue of USD 300.8 million plus test production of USD 41.7
million totalled USD 342.6 million in FY2011).
EBITDA more than doubled in 2012 to USD 460.3 million (133% increase)
(EBITDA of USD 197.4 million in 2011 included capitalized net proceeds
adjusted for capitalized depreciation linked to the GTF test
production). The EBITDA margin increased by 8% to reach 63% in 2012
(the EBITDA margin in 2011 was 58%, assuming a total revenue including
sales from test production).
Cost of sales increased by USD 167.4 million, or 237%, to USD 238.2
million in the year ended 31 December 2012 from USD 70.8 million in the
year ended 31 December 2011 primarily due to an increase in production,
depreciation, repair and maintenance, payroll expenses and materials
and supplies driven by commencement of operations at the GTF. On a boe
basis, cost of sales decreased by USD 3.36 or 16%, to USD 17.48 in the
year ended 31 December 2012 from USD 20.83 in the year ended 31
December 2011, and cost of sales net of depreciation per boe decreased
by USD 5.07, or 34% to USD 10.04 in the year ended 31 December 2012
from USD 15.11 in the year ended 31 December 2011.
General & administrative expenses increased by USD 25.1 million, or
69%, to USD 61.6 million in the year ended 31 December 2012 from USD
36.4 million in the year ended 31 December 2011 largely due to an
increase in social programme expenditures of USD 20.8 million in the
year ended 31 December 2012 from USD 1.1 million in the year ended 31
December 2011. This increase was related to the cost of construction of
a 37-kilometre asphalt road accessing the field site, which the Group
agreed to construct. The costs associated with the construction of this
road are significantly higher than the Group's usual costs relating to
social programmes under the PSA. Other expenses contributing to the
increase in general and administrative expenses include an increase in
management fees, an increase in payroll and related taxes and an
increase in training expenses.
Profit before income tax increased by USD 133.4 million, or 90%, to USD
282.4 million in the year ended 31 December 2012 compared to a profit
of USD 149.0 million in the year ended 31 December 2011. The higher
level of profit was driven primarily by increased revenue due to the
inclusion of GTF output.
Net income increased by USD 80.4 million, or 99%, to USD 162.0 million
in the year ended 31 December 2012 from USD 81.6 million in the year
ended 31 December 2011. This higher profitability was driven by
increased revenue from increased production.
Kai-Uwe Kessel, CEO of Zhaikmunai, commented:"Zhaikmunai is now solidly
anchored operationally and financially. This
is an excellent platform from which we can pursue our next stage of
development. I remain excited about the potential to further develop
our reserve base over the coming years. In addition I believe that our
new acquisitions will demonstrate that we can not only grow organically
but we are also able to make value-enhancing acquisitions that enhance
shareholder value."
OPERATIONAL HIGHLIGHTS
Production
All figures in boe (barrels of oil equivalent) unless otherwise stated
FY 2012 FY 2011 Change YoY
Total Production 13,520,040 4,802,561 + 182%
(Crude Oil + GTF Products)
Total Daily Average Production 36,940 13,158 + 181%
(Crude Oil + GTF products)
All figures in boe (barrels of oil equivalent) unless otherwise stated
Products 2012 Average 2012 Average Product
Production %
Crude Oil & Stabilised 15,764 43%
Condensate
LPG (Liquid Petroleum Gas) 2,940 8%
Dry Gas 18,237 49%
TOTAL 36,940 100%
- Total production (crude oil and GTF products) almost tripled in
2012 to 13,520,040 boe (182% increase);
- Total average daily production (crude oil and GTF products) in
2012 was 36,940 boepd.
Drilling
Zhaikmunai contracts with third parties who perform drilling operations
in the Chinarevskoye Field:
- As at 31 December 2012, Saipem, Sun Drilling, UNGG and Xi-Bu
provided their drilling services, supplying a total of six drilling
rigs;
- In addition, Kazburgaz and UNGG rigs were employed for workover
operations.
The average time required to drill new vertical wells is approximately
three months in the Tournaisian reservoir and four months in the
Devonian, Biski-Afoninski reservoirs:
- Based on historical contracts, the Group has budgeted a cost per
well of approximately USD 11.0 million for production/appraisal wells
to be drilled to the Devonian reservoirs (and an additional USD 3.0
million per well for horizontal wells);
- The cost per well for vertical production wells to the Tournaisian
reservoir is budgeted at approximately USD 8.0 million.
Zhaikmunai plans to drill 15 - 17 wells in 2013 for a total cost of USD
200 million:
- 9 appraisal wells
- 1 exploration well
- 7 production wells
Recent Developments
Zhaikmunai completed the acquisition of three fields
In March 2013, Zhaikmunai confirmed that it had acquired legal
ownership of the subsoil rights related to three oil and gas fields
(Rostoshinskoye, Darinskoye and Yuzhno-Gremyachenskoye) in Kazakhstan
located close to its main producing field, the Chinarevskoye field,
following the signing of the respective supplementary agreements
related thereto by the Ministry of Oil and Gas (MOG) of the Republic of
Kazakhstan effective 1st March 2013.
GDR Buy-Back Programme
In February 2013, Zhaikmunai announced that the Board of Directors of
its general partner, Zhaikmunai Group Limited (ZGL), had approved a
Global Depositary Receipt (GDR) buy-back programme and had submitted a
recommendation to the limited partners of the Partnership that they
approve such programme by special resolution in a special general
meeting scheduled for 28 March 2013 in Amsterdam.
Corporate Headquarters moved to the Netherlands
In Q1 2013, the seat of effective management of ZGL and Zhaikmunai LP
was moved to Amsterdam, The Netherlands.
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ATTACHED DOCUMENTS
Attached to this press release are Zhaikmunai's 2012 Consolidated
Financial Statements and 2012 Management Report. The latter contains
the following items:
Here you can download the following documents:
Download the 2012 Consolidated Financial Statements;
http://www.rns-pdf.londonstockexchange.com/rns/2009A_-2013-3-17.pdf
Download the 2012 Management Report.
http://www.rns-pdf.londonstockexchange.com/rns/2009A_1-2013-3-17.pdf
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CONFERENCE CALL
Zhaikmunai's management team will be available for a presentation of
Zhaikmunai's 2012 Full-Year Results followed by a Q&A session for
analysts and investors on Monday, March 18, 2013 at 14:00 UK time (GMT
+ 0:00).
If you would like to participate in this call, please register by email
using the following email address: investor_relations@zhaikmunai.com .
Please provide your ID details (name, title, company, email address and
telephone number) in order to receive dial-in details.
Further information
For further information please visit www.zhaikmunai.com
Further enquiries
Zhaikmunai LP - Investor Relations
Bruno G. Meere
Kirsty Hamilton-Smith
investor_relations@zhaikmunai.com + 44 (0) 1624 68 21 79
Pelham Bell Pottinger
Philip Dennis
Elena Dobson + 44 (0) 207 861 32 32
About Zhaikmunai
Zhaikmunai is an independent oil and gas enterprise currently engaging
in the production, development and exploration of oil and gas in
north-western Kazakhstan. Its Global Depositary Receipts (GDRs) are
listed on the London Stock Exchange (Ticker symbol: ZKM). Zhaikmunai's
principal producing asset is the Chinarevskoye field, in which it holds
a 100% interest and is the operator, through its wholly-owned
subsidiary Zhaikmunai LLP. In addition, Zhaikmunai holds a 100%
interest in and is the operator of the Rostoshinskoye, Darinskoye and
Yuzhno-Gremyachenskoye oil and gas fields. Located in the pre-Caspian
basin to the north-west of Uralsk, these exploration and development
fields are approximately 60 and 120 kilometres respectively from the
Chinarevskoye field.
Forward-Looking Statements
Some of the statements in this document are forward-looking.
Forward-looking statements include statements regarding the intent,
belief and current expectations of the Partnership or its officers with
respect to various matters. When used in this document, the
words"expects,""believes,""anticipates,""plans,""may,""will,""should"
and similar expressions, and the negatives thereof, are intended to
identify forward-looking statements. Such statements are not promises
or guarantees, and are subject to risks and uncertainties that could
cause actual outcomes to differ materially from those suggested by any
such statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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