SOURCE: Zhaikmunai LP

May 20, 2013 02:06 ET

Zhaikmunai Q1 2013 Results - Outperforming Targets

AMSTERDAM, THE NETHERLANDS--(Marketwired - May 20, 2013) -




              Q1 2013 Results - Outperforming Targets

Amsterdam, 20 May 2013 - Zhaikmunai L.P. (LSE: ZKM) ("Zhaikmunai"), the
oil and gas exploration and production enterprise with assets in
north-western Kazakhstan, today announces its financial results for the
period from 1 January to 31 March 2013.

HIGHLIGHTS FROM A RECORD FIRST QUARTER (Q1 2013)

- OPERATIONAL:

  o Record total average daily production of 46,273 boepd, an increase
  of 25% compared to FY2012 average (36,940 boepd);

  o Continued progress with drilling programme and expansion of
  processing ability;

- FINANCIAL:

  o Record revenue of US$ 229 million, up 7% compared to Q4 2012
  (US$ 214 million);

  o Record EBITDA of US$ 153 million, up 30% compared to Q4 2012
  (US$ 117 million);

  o Strong cash generation, net debt of US$ 365 million at 31 March
  2013, down 9% compared to the end of FY 2012 (US$ 401 million);

  o Net debt to LTM EBITDA ratio fell below 0.75x;

- NEW DEVELOPMENTS:

  o Excess cash to be deployed through a GDR Buy-Back Programme of up
  to US$ 50 million commencing Monday, 20 May 2013.

Kai-Uwe Kessel, Chief Executive Officer of Zhaikmunai, commented:"Our
excellent first quarter results bear witness to the outstanding
performance we have achieved operationally. Production levels have
surpassed our average target for the year. Our revenue and EBITDA are
again at record levels for the quarter and our cash position has never
been stronger. While we will continue to make significant ongoing
investment in future growth, we are pleased to be able to combine this
with a US$ 50 million GDR Buy-Back Programme. We continue to focus on
developing Zhaikmunai to deliver the best possible returns to our
shareholders and remain confident about our strong prospects in 2013."

Q1 2013: STRONGEST FINANCIAL RESULTS IN ZHAIKMUNAI'S HISTORY

All figures in US$ million (unless otherwise stated)

              Q1 2013 Q4 2012(1) Change Q1 2012 Change

Revenue       228.5   213.8      6.9%   163.4   39.9%

EBITDA        152.5   117.3      30.0%  110.9   37.6%

EBITDA Margin 66.7%   54.9%      11.8%  67.9%   (1.2%)


             Q1 2013 FY 2012 Change

Cash Balance 287.3   251.4   14.3%

Net Debt     365.2   401.1   (9.0%)


(1) Q4 numbers contain audit adjustments made to the full year 2012 and
therefore are not a true reflection of the actual Q4 reality, i.e. they
are obtained by deducting Q3 2012 results from full-year 2012 results).
They are used here solely for comparative purposes in order to show the
marginal changes from the third to the fourth quarter in the context of
the full production ramp-up which took place in 2012.

Revenue, EBITDA and Net Income

Revenue from sales of crude oil, stabilised condensate, LPG and dry gas
stood at US$ 229 million. EBITDA stood at US$ 153 million. The EBITDA
margin increased to 66.7% from 54.9% during the previous quarter,
reflecting operational leverage from the capacity to handle increased
production. Net income was also up for the period at US$ 66 million.

Cost of Sales

Cost of sales declined by US$ 10.7 million, or 12.9%, to US$ 72.4
million compared to US$ 83.1 million for Q4 2012. This decline was
driven by a decrease in maintenance expenses of 44.2% from the previous
period. The decline in maintenance expenses by US$ 9.7 million to
US$ 12.3 million was due to increased GTF costs related to plant shut
down in Q4 2012.

Cash

Zhaikmunai ended the first quarter of 2013 with US$ 287.3 million in
cash and cash equivalents, which includes US$ 3.8 million of restricted
cash and US$ 50.0 million of short-term deposits. This represents a
US$35.9 million increase, or 14.3%, compared to the end of the 2012
financial year.

Initiation of GDR Buy-Back Programme

As announced on 22 April 2013, Zhaikmunai's long-term GDR Buy-Back
programme of up to US$ 50 million will commence following this Q1 2013
Results release.

OPERATIONS AT AN ALL TIME HIGH

Record Production Drives Revenue and EBITDA Higher

- Total average daily production for Q1 2013 was 46,273 boepd, an
increase of approximately 24% compared to Q4 2012 (37,184 boepd);

- The product split for Q1 2013 was as follows:

PRODUCTS                      Q1 2013 Average        Q1 2013 Product
                              Production             Mix %

Crude Oil & Stabilised        19,705 boepd           43%
Condensate

LPG (Liquid Petroleum Gas)    3,651 boepd            8%

Dry Gas                       22,917 boepd           49%

TOTAL                         46,273 boepd           100%

Drilling activities

- A total of three new wells have been completed in the course of
Q1 2013: 2 gas condensate production wells (Wells # 216 and # 410) and
1 crude oil appraisal well (Well # 701);

- Zhaikmunai is on target to achieve its planned drilling programme
for 2013 of 15 to 17 wells comprising 9 appraisal wells, 1 exploration
well and 5 to 7 production wells. The field currently has 15 oil wells
and 12 gas condensate wells in operation.

Expansion of Processing Capacity with Additional Train to Gas Treatment
Facility

Design of the third train of Zhaikmunai's Gas Treatment Facility (GTF)
has been completed and has received approval from the Kazakh
authorities. Zhaikmunai is currently analyzing and evaluating the bids
for the final selection of the main process and auxiliary equipment
vendors. The tender for civil and construction works has been launched
and results are expected in the course of Q2 2013.

Other News

Zhaikmunai Hosting a Site Visit on Thursday, 27 June 2013

On Thursday, 27 June 2013, Zhaikmunai is hosting a site visit of its
Chinarevksoye field for analysts and investors. Details and
registration are available on  www.zhaikmunai.com .

KASE (Kazakhstan Stock Exchange) Presents Zhaikmunai with Special Award

On March 29 2013, Zhaikmunai was presented with a special award by KASE
for its transparency record.

Arnat Abzhanov, Member of the Management Board, JSC Halyk Finance,
commented:"Companies who are listed on more than one stock exchange are
faced
with different and sometimes conflicting reporting requirements. The
KASE award demonstrates that Zhaikmunai manages these challenges
efficiently every day and is fully committed to all of its security
holders."

CONFERENCE CALL

Zhaikmunai's management team will be available for a Q&A session for
analysts and investors on the day of the announcement, Tuesday, 21 May
2013 at 14:00 UK time (UTC/GMT+1 hour).

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.

Download the Q1 2013 Financial Statements

 http://www.rns-pdf.londonstockexchange.com/rns/0636F_-2013-5-19.pdf 

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      + 31 20 737 2288

Pelham Bell Pottinger                 + 44 (0) 207 861 3232
Philip Dennis
Elena Dobson

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.



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