Kazmunaigaz Exploration Regulatory News (KMG)

17 Apr 2007 08:00

JSC KazMunaiGas Exploration Prod17 April 2007 PRESS RELEASE KazMunaiGas Exploration Production Recommends Record Dividend. Astana, 17 April, 2007. JSC KazMunaiGas Exploration Production (KMG EP, TheCompany) confirmed today the date for the Annual General Meeting (AGM) ofshareholders as 18th May 2007. The Board of Directors of the Company hasrecommended a Dividend for the fiscal year 2006 of 500 tenge per share(approximately US$0.684 per GDR(1)). The Board's recommendation is based on the KMG EP's stated policy of paying out15% of net income, but also includes an additional Special Dividend amount. TheSpecial Dividend represents a distribution to shareholders of funds derivingfrom extraordinary items and which are not required for financing KMG EP'sinvestment projects, including acquisitions of new assets and exploration. Ifapproved at the AGM, the total amount of the dividend will be 37bn tenge(approximately US$303 million). Commenting on the Board's decision, the CEO of KMG EP, Askar Balzhanov said, "The record dividend level reflects the confidence we have in the Company'sfinancial capabilities and demonstrates our commitment to shareholder interests.We continue to pursue our long-term growth strategy while maintaining strictfinancial discipline." It is expected that subject to approval at the AGM, the dividend for the fiscalyear 2006 will be payable to shareholders of record on 28 May, 2007. Payment ofdividend is expected to begin in July 2007. Notes for editors JSC KazMunaiGas Exploration Production, headquartered in Astana, is the 3rdlargest Kazakh oil and gas producing company with 205.9 mmt (1.5 bn bbl) ofproved and probable reserves at the end of 2005 and over 9.5mmt/year (192 kbopd)of crude production in 2006. The Company extracts hydrocarbon resources from 44oil and gas fields located in the Atyrau and Mangistau regions in westernKazakhstan and is also engaged in onshore exploration activities, concentratedin the same areas. The Company's revenues for 2006 increased by 18.1% year on year to 412.2 bnTenge. Profit after tax (net income) from continuing operations for 2006 was122.6 bn Tenge, almost threefold increase over 2005. The growth in net incomewas driven by favorable oil market conditions, production growth, continued costcontrol, release of certain accruals made in earlier periods and recent taxamendments to one of the subsoil agreements. Cash, cash equivalents andfinancial assets at the end of 2006 amounted to 391.8 bn Tenge. Borrowings were59.7 bn Tenge at the end of 2006 The Company's shares are listed on Kazakhstan Stock Exchange and the GDRs arelisted in London. The company raised approximately US$2 billion in its IPO inSeptember of 2006. The total number of ordinary shares of the Company is70,220,935 of which 43,087,006 or 61.36% are owned by NC KMG. The Company alsohas 4,136,107 preferred shares. For further details please contact us at: KMG EP, Public Relations (+7 317 2 977 908, +7 3172 977 924) Lyazzat Kokkozova E-mail: pr@kmgep.kz KMG EP, Investor Relations (+7 3172 975433) Alexander Gladyshev E-mail: ir@kmgep.kz WMC Communications Ltd (+44 207 930 9030) Elena Dobson: E-mail: Elena.dobson@wmccommunications.com Forward-looking statements This document includes statements that are, or may be deemed to be, ''forward-looking statements''. These forward-looking statements can be identifiedby the use of forward-looking terminology, including, but not limited to, theterms ''believes'', ''estimates'', ''anticipates'', ''expects'', ''intends'', ''may'', ''target'', ''will'', or ''should'' or, in each case, their negative orother variations or comparable terminology, or by discussions of strategy,plans, objectives, goals, future events or intentions. These forward-lookingstatements include all matters that are not historical facts. They include, butare not limited to, statements regarding the Company's intentions, beliefs andstatements of current expectations concerning, amongst other things, theCompany's results of operations, financial condition, liquidity, prospects,growth, potential acquisitions, strategies and as to the industries in which theCompany operates. By their nature, forward-looking statements involve risk anduncertainty because they relate to future events and circumstances that may ormay not occur. Forward-looking statements are not guarantees of futureperformance and the actual results of the Company's operations, financialcondition and liquidity and the development of the country and the industries inwhich the Company operates may differ materially from those described in, orsuggested by, the forward-looking statements contained in this document. TheCompany does not intend, and does not assume any obligation, to update or reviseany forward-looking statements or industry information set out in this document,whether as a result of new information, future events or otherwise. The Companydoes not make any representation, warranty or prediction that the resultsanticipated by such forward-looking statements will be achieved. -------------------------- (1) One GDR corresponds to one sixth of ordinary share. Tenge amounts converted into US$ at 121.8 tenge per dollar, for convenience only. This information is provided by RNS The company news service from the London Stock Exchange