KazMunaiGas Net profit for 1Q 2014 reached $727 mln

Thus, revenue in the first three months of 2014 was KZT 220.8bn (US$1,301m) , a 9% increase compared with the same period for 2013. The average price of Brent in the first three months of 2014 was 4% lower than in the same period of 2013, down from US$112.6 per barrel to US$108.2 per barrel. Production expenses in the first three months of 2014 were KZT 43.8bn (US$258m), which is 2% higher compared with the same period of 2013 mainly due to increased expenses for employee benefits. Net profit for the first three months of 2014 was KZT 123.5bn (US$727m) largely due to a before tax foreign exchange gain of KZT 108bn (US$635m) as a result of the Tenge devaluation in February 2014.

In the first three months of 2014, KMG EP produced 3,048 thousand tonnes of crude oil (250kbopd), including the Company's stakes in Kazgermunai (KGM), CCEL (CCEL) and PetroKazakhstan Inc. (PKI), which is 1% more than in the same period in 2013. Ozenmunaigas JSC (OMG) produced 1,301 thousand tonnes (106kbopd), an increase of 5% compared with the same period of 2013. Embamunaigas JSC (EMG) produced 684 thousand tonnes (56kbopd), which is 1% less than in the same period of 2013. The total volume of oil produced at OMG and EMG in the first three months of 2014 was 1,985 thousand tonnes (162kbopd), which is 3% more than the same period for 2013. The Company's share in production from KGM, CCEL and PKI for the first three months of 2014 On 18 March 2014 the Board of Directors of KMG EP recommended a dividend for 2013 financial year of 1,976 Tenge per ordinary and preferred share which is equivalent to about 135 billion Tenge (approximately US$730 million ). This proposal will be voted upon at the AGM.

KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2013 was 12.4 million tonnes (an average of 251 kbopd) of crude oil, including the Company's share in Kazgermunai, CCEL and PKI. The Company's total consolidated volume of proved and probable reserves including shares in the associates, as at the end of 2013 was 200 million tonnes (1.5 bn bbl), out of which 148.8 million tonnes (1.1 bn bbl) relates to Ozenmunaigas, Embamunaigas, and UOG (Rozhkovskoye field, Fyodorovskiy block). The Company's shares are listed on the Kazakhstan Stock Exchange and the GDRs are listed on The London Stock Exchange. The Company raised over US$2bn in its IPO in September 2006. The International rating agency Standard & Poor's (S&P) confirmed KMG EP's "BBB-" corporate credit rating in May 2013.