17th Nov 2010 07:00
PRESS-RELEASE
Standard & Poor's confirms the «GAMMA-6» corporate governance rating of KMG EP
Astana, 17 November 2010. International rating agency Standard & Poor's (S&P) has confirmed the GAMMA-6 corporate governance rating of JSC KazMunaiGas Exploration Production ("KMG EP" or "the Company").
In its report S&P notes the strengths of KMG EP's corporate governance practice: effective work of the independent non-executive directors in balancing the interests of the main shareholder and minority shareholders, as well as thorough monitoring of the Company's management work. The relationship between KMG EP and its parent company, NC KMG, is legally secured and transparent. The obligation of the parent company to use its preemptive right to acquire the assets and licenses in the interests of KMGEP has been carried out in recent years in full.
S&P evaluates the level of transparency of KMG EP as high. The Company interacts effectively with its investors and regularly updates its three-language website. The Company shows a high level of information disclosure, providing quarterly financial updates that are timely and independently audited to IFRS standard. The shareholders are empowered with a wide range of rights, successful risk management systems are implemented, and there are effective procedures for preparing and holding shareholder meetings.
S&P analysts consider the preferred shares listing and the buyback programme in 2010 to be executed in the interests of the KMG EP's holders of preferred shares.
From the point of view of managing monetary funds, S&P regards the USD$1.5bn bond deal with NC KMG as positive because credit rating on liabilities in foreign currency of NC KMG is BB + / Stable/--, at least three notches above the ratings of domestic banks in which KMG EP is making deposits.
Notes to Editors
KMG EP is among the top three Kazakh oil and gas producers. The overall production in 2009 was 11.5mmt (an average of 232kbopd) of crude oil, including the Company's share in Kazgermunai and CCEL. The volume of proved and probable reserves (2P) of KMG EP as at the end of 2009 was 234mmt (1.7bn barrels); while including the share of reserves from associates and joint ventures, preliminary about 2.2 bn barrels. The Company's ordinary and preferred shares are listed on 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. In December 2009 International rating agency Standard & Poor's assigned KMG EP "GAMMA-6" level of the corporate governance and in July 2010 confirmed the Company's "BB+" corporate credit rating.
GAMMA rating (from English governance, accountability, management metrics and analysis) reflects the opinion of Standard & Poor's Corporate Ratings Service on the relative strength of a company's corporate governance practices. It takes into account level of shareholder protection from investment risk associated with poor governance systems. Practices and Policies are measured against S&P's corporate governance criteria, which are based on a synthesis of international codes, best corporate governance practices and guidelines.
For further details please contact us at:
«KMG EP» Public Relations (+7 7172 97 7600)
Daulet Zhumadil
E-mail: [email protected]
«KMG EP» Investor Relations (+7 7172 97 5433)
Asel Kaliyeva
E-mail: [email protected]
Pelham Bell Pottinger (+44 207 861 3147)
Elena Dobson
E-mail: [email protected]
Forward-looking statements
This document includes statements that are, or may be deemed to be, ''forward-looking statements''. These forward-looking statements can be identified by the use of forward-looking terminology including, but not limited to, the terms ''believes'', ''estimates'', ''anticipates'', ''expects'', ''intends'', ''may'', ''target'', ''will'', or ''should'' or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. These forward-looking statements include all matters that are not historical facts. They include, but are not limited to, statements regarding the Company's intentions, beliefs and statements of current expectations concerning, amongst other things, the Company's results of operations, financial condition, liquidity, prospects, growth, potential acquisitions, strategies and as to the industries in which the Company operates. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances that may or may not occur. Forward-looking statements are not guarantees of future performance and the actual results of the Company's operations, financial condition and liquidity and the development of the country and the industries in which the Company operates may differ materially from those described in, or suggested by, the forward-looking statements contained in this document. The Company does not intend, and does not assume any obligation, to update or revise any forward-looking statements or industry information set out in this document, whether as a result of new information, future events or otherwise. The Company does not make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved.
Related Shares:
Kazmunaigaz Exploration