Net profit of RoK national companies 19% up

12:42, 24 November 2016

ASTANA. KAZINFORM - The Transformation Program covers 8 national companies in Kazakhstan. Their total net profit has grown by 19% within one year, finprom.kz wrote. In the first half of 2016 the national companies in total have KZT 146 billion of net profit (before income tax deduction). The companies managed to level the inflation pressure, and despite rise in cost value of release of goods and services, the index of production profitability in the current year equaled 18% which is the level of 2015.

Reformatting of the companies' business mechanism has allowed them to activate and increase sales volumes. Less companies keep their money on deposits and more invest in production. As a result the financing income within the year has decreased by 17%. Total expenses of the companies within the year have increased by 22%, however the costs which are directly connected with production have grown.

Administrative expenses and labor costs have increased by only 0,2%, and equal KZT 157 billion. As a result the share of such costs in total amount has decreased to 19% compared to 23% in 2015.

To remind, in September 2014 the Board of Directors of JSC Samruk-Kazyna approved the Transformation Program targeted at value addition of the companies of the Holding, effective portfolio management and introduction of new corporate management principles in line with the OECD standards. The Transformation Program also covers KTZh, Kazpochta, KazMunaiGas, KEGOC, Samruk-Energo, Kazatomprom and Samruk-Kazyna Contract.

Business Economy