Annual report 2022
New
horizons
New horizons
FOR PEOPLE AND ECONOMY
KMG went IPO
on Kazakhstan’s stock exchanges KASE and AIX.
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Alikhan Smailov
Magzum Myrzagaliyev
Prime Minister of Kazakhstan
Orders submitted by Kazakhstan’s citizens were given priority and accepted in full. KMG’s IPO will have a positive effect on both the country’s financial system and citizens. It is another step towards an open and efficient economy for the benefit of our people.
Chairman of KMG’s Management Board
For us, the IPO means both a new phase in the Company’s development and great responsibility. Tens of thousands of Kazakhstanis, national and foreign investors put their trust in us and became part of KMG. We will strive for higher transparency and better standards of corporate governance and do our best to ensure strong performance in the long run to benefit our shareholders.
New horizons
FOR GROWTH
The acquisition of Samruk-Kazyna’s stake in the Kashagan project became a strategic milestone
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This is one of the biggest deals for KMG in recent years. Having increased its interest in the Kashagan project, KMG will improve its consolidated production, EBITDA, net profit and asset portfolio.
New horizons
FOR THE COMPANY
KMG is focused on creating a petrochemical industry in Kazakhstan, which marks a new level in its development.
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Magzum Myrzagaliyev
Chairman of KMG’s Management Board
The project is aimed at diversifying the national economy and shifting the focus of Kazakhstan’s exports away from mineral resources. The gas chemical cluster together with the line of base polymer materials intended for production will help beat the industry dependency on imports, as well as become a real force behind the national petrochemical business development enabling it to move along the value chain towards end-product manufacturing
KMG acquires
49.5 %
of KPI Inc.
Launch of an integrated gas chemical complex of Kazakhstan Petrochemical Industries (KPI)
Output
32 thous. tonnes
of polypropylene
Shipped
>9 thous. tonnes
of polypropylene
SIGNIFICANT RESERVES GROWTH
In 2022, KMG’s proved and probable (2P) reserves substantially increased
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As part of this strategic goal,
KMG plans to grow organically
and inorganically to add new
reserves sufficient both for
conventional operations and
new promising areas of activity.
202120222020635Mln toe645Mln toe707Mln toe+9.8%
PROVED
PROBABLE
RESERVES (2P)
STRONG FINANCIAL PERFORMANCE
In 2022, KMG significantly increased almost all of its financials
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202218.8USD blnRevenue20225.5USD bln20214.7USD blnDUE TO:+16.4%rise in global oil and oil product prices.EBITDAThe key driver behind EBITDA growthwas Exploration and Production, mainly due to higher profit from joint ventures and associates, in particular,Tengizchevroil where profit wasup USD 575 mln.202115.2USD blngrowth of Brent crude price by 42.9% year-on-year and the tenge’s depreciation against US dollar by 8.2%.DUE TO:+24.3%
Strategic goal:
  • Improved efficiency across the Company’s value chain
FIRST EVER IPO OF A NATIONAL COMPANY WITHOUT MEANINGFUL PARTICIPATION OF PENSION FUNDS
0.1% share of pension funds
FIRST DIGITAL IPO
~99% of orders
were placed via digital platforms

This was the first IPO in Kazakhstan to offer direct subscription via the Tabys app and Kazpost offices. That, together with bank, broker and dealer mobile apps, enabled individuals from all regions and remote localities to subscribe to shares.

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Strategic goal:
  • Resource base sufficient to support the Company’s growth
KASHAGAN IS A SUPERGIANT OFFSHORE OIL AND GAS FIELD IN KAZAKHSTAN

One of the largest oil fields discovered in the past decades.

>97 years
2P oil and condensate reserves life
KASHAGAN IS ONE OF THE MOST COMPLEX PROJECTS IN THE INDUSTRY GLOBALLY

Harsh environmental conditions at sea and significant design, logistics and safety challenges require innovative technical solutions. KMG, together with international partners, is successfully implementing the project, having achieved sustainable production rates with further growth potential.

1,402 thous. tonnes (34 thous. bbl per day)
oil and condensate production in 2022 (attributable to KMG)
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Strategic goal:
  • Business diversification and product portfolio expansion
FULLY MEETING DOMESTIC DEMAND AND EXPORTS

In addition to covering the need for polypropylene in the domestic market, the new production facility will also support small and medium-sized enterprises manufacturing products for the construction, medical, automotive and food industries.

HIGH QUALITY AND WIDE ASSORTMENT

Product quality is verified by SGS, a world-renowned Swiss company whose laboratory already operates on the facility’s premises.

11 most sought-after polypropylene grades
at the initial stage
65 grades —
target product range expansion
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Strategic goal:
  • Resource base sufficient to support the Company’s growth
PROVED PROBABLE RESERVES (2P)
+9.8%
DUE TO:
  • Acquisition of stake at the Kashagan megaproject
  • Progress against the development plans, including well interventions and piloting
  • Increase in oil prices in 2022
IN 2022, FREE CASH FLOW EXCLUDING SHARE BUYBACK IN KMG KASHAGAN B.V. TOTALLED
2.4 USD bln