KMG EP 2017 Annual Report Draft

2017 Annual Report Draft

Table of contents

About this report

Key performance indicators

Key events

About our business

Origins

Mission, strategy, values and goals

Strategy

Values

Key objectives

Assets structure, relationship with holding company, subsidiaries and associates

Asset ownership structure

Key exploration and production interests

Social programmes

Share price performance

About Kazakhstan

Key facts

Kazakhstan's oil and gas sector

Oil and condensate production

Factors contributing to higher production

Refining and transportation

Gas production and export

Business model

Our key attributes

Three business areas

Four objectives

Chairman's statement

A brief history of KMG EP as a public company (reversal)

Repurchase of minority stakes and delisting

Chief Executive Officer's statement

2017 milestones

Q1

Q2

Q3

Q4

Key operating and financial indicators

Market overview

Operational activities overview

Oil production

Crude oil exports and domestic sales

Crude oil processing

Reserves

Exploration and appraisal

Capital expenditure overview

Financial overview

Taxation

Overview of JV's and associate operations

Liquidity and capital resources

Risk factors

Corporate social responsibility

Health, safety and environmental protection

Environmental protection

Social responsibility

Business conduct

Corporate governance

Board of Directors

Members of the Board of Directors and their biographies

The corporate governance codes of Samruk-Kazyna JSC and KMG EP

Directors' responsibility statement

Management Board structure

Responsibility of the Board of Directors and Management Board

Committees of the Management Board

Information about taxation in the UK

Consolidated financial statements for 2017

Information for shareholders

Contact information

Reference information

http://www.rns-pdf.londonstockexchange.com/rns/3541M_-2018-4-27.pdf 

About this report

The purpose of this Annual Report is to inform readers about the material aspects of JSC KazMunaiGas Exploration Production's (KMG EP, or the Company) business. With this Report, the Company aims to help investors and stakeholders understand how it forms its strategy, manages its operations, achieves its financial performance, ensures the long-term sustainability of its business and develops value for stakeholders and interested parties. It addresses the following questions:

· What do the Company, its subsidiaries, associates and joint ventures do?

· What are the circumstances under which it operates?

· How does the Company's corporate governance structure maintain its ability to create value for stakeholders in the short, medium and long term?

· What is the Company's business model?

· What are the main risks and opportunities influencing the organisation's ability to create value for stakeholders in the short, medium and long term, and how are these managed?

· What are the Company's goals, aims and objectives, and how does it intend to achieve them?

· To what extent has the organisation met its goals, aims and objectives for the reporting period, and what has been the effect on Company valuation for stakeholders?

· What are the key challenges and uncertainties the organisation is likely to face in pursuing its strategy, and what are the potential implications for its business model and future performance?

Key performance indicators

*Including proportionate share of equity-accounted entities and CCEL.

**EBITDA is calculated by adding back the share of income in equity-accounted entities, financial income and non-cash expenses, such as depreciation and amortisation, to the Company's operating profit.

***Operating profit does not include the profit contribution of equity-accounted entities, CIT expenses, finance charges, impairment charges, foreign-exchange gains/losses and other non-operating charges, or losses from the purchases of affiliates.