Samruk-Kazyna JSC (“the Fund”) announced the financial results of the Fund and its portfolio companies for the year ended December 31, 2016 at the special information session for the media.
According to Yernar Zhanadil, Acting Managing Director for Finances and Operations of the Fund, Samruk-Kazyna JSC completed 2016 with a positive financial result. Consolidated net profit attributable to the shareholder amounted to KZT 455 billion in 2016, which exceeds the indicator of 2015 by KZT 292 billion.
The consolidated revenue of the Fund amounted to about KZT 4.1 trillion, an increase by 32% compared to the same period last year. A considerable growth in revenue is the result of the sale of additional crude oil in the second half of 2016 during the increase in quotations, as well as the sale of refined gold and oil & gas processing products.
The consolidated assets of the Fund's group amounted to more than KZT 22.4 trillion as of December 31, 2016, which is KZT 1.6 trillion or 7.5% higher compared to the same indicator of 2015.
In 2016, the Fund group demonstrated growth in the key financial performance indicators compared to 2015. EBITDA and EBITDA margin in 2016 totaled KZT 982 billion and 20.6%, respectively, while similar indicators for the end of 2015 amounted to KZT 639 billion and 17.8%. The Fund's strategic indicator - the net asset value increased by 7% compared to the last year and reached more than KZT 6.8 trillion.
At the information session, the Fund’s largest portfolio companies also presented the results of financial activities.
Thus, the net profit of NC KazMunayGas JSC in 2016 amounted to KZT 306 billion. According to Dauren Karabayev, Executive Vice President, Chief Financial Officer of NC KMG, the company produced 22.6 million tons of oil and 7.4 billion cubic meters of gas.
National company Kazakhstan Temir Zholy JSC received a net profit in the amount of KZT 41 billion. Zhaslan Madiyev, CFO of NC KTZ JSC, noted that last year the volume of cargo and passenger transportation increased by 6.5% while the container service in the China-Europe-China direction grew by 120%.
As per Kairat Maksutov, Managing Director for Economics and Finance of Samruk-Energy JSC, the consolidated profit of the company in 2016 was KZT 18 billion against the planned of KZT 6.5 billion. Last year,Samruk-Energy produced 22.5 billion kWh of electricity or about 24% of the total generation in the country. The amount of coal production exceeded 35 million tons, which is 36% of the total extraction in Kazakhstan.
In addition, Baljeet Kaur Grewal, Managing Director for Strategy and Portfolio Investments of Samruk-Kazyna JSC, told about the Fund's Development plan for 2017-2021. According to the Fund's forecast, in the next five years oil prices will rise by 33%, in the group of the Fund’s companies oil and gaseous condensate production will increase by 8,6%, cargo freight turnover will grow by 17% and passenger transportation by 36%.
"We have transformed the Fund focusing on commercial activities. We revised Fund’s KPIs. We strengthened our teams by conducting job matching. As a result, the right people are in the right places. After the transformation, we improved business processes and internal communications. We closely cooperate with portfolio companies. We help them. For example, we developed DCF-models. With their help, we can accurately calculate the value of companies and potential for increasing the value of portfolio companies. As a result, all this allows us to fulfill our financial and non-financial performance indicators. The Fund is transitioning into strategic active investor model which means that we now set clear, strategic benchmarks for our PCs, use a portfolio management approach combined with clear financial targets," said Baljeet Kaur Grewal, Managing Director for Strategy and Portfolio Investments of Samruk-Kazyna JSC, at a special information session for the media on 2016 financial results of the Fund and its portfolio companies.”
Samruk-Kazyna will continue to evolve into strategic holding and active investor as a part of its wider Transformation Program. The Fund will focus on six key development initiatives in order to successfully execute its strategy: improvement of Portfolio management; privatization program, reorganization of investment portfolio through sale and the liquidation of assets; development of the Fund's investment portfolio with a focus on new industries; transformation of the portfolio companies; transition of the Fund’s corporate center to the new functional model; enhancing financial sustainability.