JSC Exploration and Production KazMunaiGas (KMG) - Financial and
Strategic SWOT Analysis Review
Reference Code: GDGE37FSA Publication Date: MAY 2011
Left Bank, 1st street, Building 2 Phone +7 3172 977401 Revenue 609,242 (million KZT)
Astana Fax +7 3172 977403 Net Profit 234,501.89 (million KZT)
010000 Website www.kmgep.kz Employees 21,113
KMG [Stock Exchange of
Kazakhstan Exchange Industry Oil & Gas
Thailand (Bangkok)]
Company Overview
JSC Exploration and Production KazMunaiGas (KMG EP) is an oil and gas company. The company is engaged in the
exploration, development and production of crude oil, natural gas and associated gas from its hydrocarbon reserves in
Kazakhstan. It is a subsidiary of National Company KazMunaiGas (NC KMG), involved in oil and gas operations. KMG EP was
formed through the merger of UzenMunaiGas (UMG) and EmbaMunaiGas (EMG). The company is the second largest crude oil
producer in the Republic of Kazakhstan in terms of annual production volumes of hydrocarbons (including crude oil). KMG E&P is
headquartered at Astana, Kazakhstan.
In March 2011, the company acquired 50% Stake In Ural Group.
Key Executives SWOT Analysis
Name Title JSC Exploration and Production KazMunaiGas, SWOT
Askar K. Balzhanov Chairman Analysis
Sisengali Utegaliyev Director Strengths Weaknesses
Yerzhan Zhangaulov Director
Kenzhebek Ibrashev Director Support of Parent Company Decreasing Liquidity
Assia Syrgabekova Director
Source: Annual Report, Company Website, Primary and Secondary Research, Healthy Financials Low Debt-Equity Ratio
GlobalData
Share Data
JSC Exploration and Production KazMunaiGas Opportunities Threats
Share Price (KZT) as on 10-May-2011 21.67
EPS (KZT) 3,231.75 Expansion through Inorganic Intense Competition
Market Cap (million KZT) 220,828 Growth
Enterprise Value (million KZT) 244,789 Fluctuating Oil Markets
Shares Outstanding (million) 68 Huge Potential Oil & Gas
Source: Annual Report, Company Website, Primary and Secondary Research, Reserves in the Black Sea
GlobalData
Source: Annual Report, Company Website, Primary and Secondary Research,
GlobalData
Financial Performance Recent Developments
Apr 28, 2011 Gazprom And KazMunaiGaz Sign
Agreement Identifying KazRosGaz As
Imashevskoye Field Operator
Dec 15, 2010 Chevron And Other Shareholders Sanction
Caspian Pipeline Expansion
Nov 22, 2010 KazMunaiGaz Expands Storage Volume At
DPF Petroleum Depot In France
Sep 07, 2010 Gazprom, KazMunaiGas To Jointly Explore
Imashevskoye Gas Field
Aug 27, 2010 Kazakhstan To Exceed Oil Output Target
In 2010
Source: Annual Report, Company Website, Primary and Secondary Research,
Source: Annual Report, Company Website, Primary and Secondary Research,
GlobalData
GlobalData
JSC Exploration and Production KazMunaiGas (KMG) - Financial and Reference Code: GDGE37FSA
Strategic SWOT Analysis Review
Source : www.globalcompanyintelligence.com Page 1
Table of Contents
Table of Contents........................................................................................................................................................................................................... 2
List of Tables .................................................................................................................................................................................................................. 4
List of Figures................................................................................................................................................................................................................. 4
Section 1 - About the Company ..................................................................................................................................................................................... 5
JSC Exploration and Production KazMunaiGas - Key Facts ......................................................................................................................................... 5
JSC Exploration and Production KazMunaiGas - Key Employees ................................................................................................................................ 6
JSC Exploration and Production KazMunaiGas - Key Employee Biographies .............................................................................................................. 7
JSC Exploration and Production KazMunaiGas - Major Products and Services ........................................................................................................... 8
JSC Exploration and Production KazMunaiGas - Key Operational Summary ............................................................................................................... 9
JSC Exploration and Production KazMunaiGas - History ............................................................................................................................................ 10
JSC Exploration and Production KazMunaiGas - Company Statement....................................................................................................................... 12
JSC Exploration and Production KazMunaiGas - Locations And Subsidiaries ............................................................................................................ 14
Head Office............................................................................................................................................................................................................ 14
Other Locations & Subsidiaries ............................................................................................................................................................................. 14
Section 2 – Company Analysis .................................................................................................................................................................................... 15
JSC Exploration and Production KazMunaiGas - Business Description...................................................................................................................... 15
Business Description - Exploration and Production............................................................................................................................................... 15
Exploration and Production - Overview........................................................................................................................................................... 15
Exploration and Production - Production......................................................................................................................................................... 15
Exploration and Production - Financials.......................................................................................................................................................... 15
Exploration and Production - Capital Expenditure .......................................................................................................................................... 16
JSC Exploration and Production KazMunaiGas - Corporate Strategy ......................................................................................................................... 17
JSC Exploration and Production KazMunaiGas - SWOT Analysis .............................................................................................................................. 18
SWOT Analysis - Overview ................................................................................................................................................................................... 18
JSC Exploration and Production KazMunaiGas - Strengths ................................................................................................................................. 18
Strength - Support of Parent Company........................................................................................................................................................... 18
Strength - Healthy Financials .......................................................................................................................................................................... 18
Strength - Substantial Asset Base .................................................................................................................................................................. 18
JSC Exploration and Production KazMunaiGas - Weaknesses ............................................................................................................................ 18
Weakness - Decreasing Liquidity.................................................................................................................................................................... 18
Weakness - Low Debt-Equity Ratio ................................................................................................................................................................ 18
JSC Exploration and Production KazMunaiGas - Opportunities ........................................................................................................................... 19
Opportunity - Expansion through Inorganic Growth ........................................................................................................................................ 19
Opportunity - Huge Potential Oil & Gas Reserves in the Black Sea ............................................................................................................... 19
Opportunity - Rising Demand for Petroleum Products .................................................................................................................................... 19
JSC Exploration and Production KazMunaiGas - Threats..................................................................................................................................... 19
Threat - Intense Competition........................................................................................................................................................................... 19
Threat - Fluctuating Oil Markets ...................................................................................................................................................................... 19
Threat - Political Environment .................