"KazMunayGas" Restored Production and Increased Net Income in the Second Quarter

In the first half of 2026, KazMunayGas (KMG) increased its net profit by 69.1% compared to the first half of 2025, to 904 billion tenge ($1.86 billion). Revenue rose by 23.7% to 5.57 trillion tenge ($11.45 billion), while EBITDA increased by 45% to 1.66 trillion tenge ($3.4 billion). In just six months, the company has already earned about 84% of its net profit for the entire year 2025. Oil prices were the main factor: the average price of Brent rose by 28.4% to $92.31 per barrel. KMG also notes an increase in sales prices for petroleum products in Europe through KMG International. The report notes that the effect was partially offset by the tenge’s appreciation against the dollar by an average of 5%.

KMG's financial results for the second quarter improved significantly: revenue rose from 2.48 trillion tenge ($5.38 billion at the National Bank’s exchange rate as of August 18, 2026) to 3.09 trillion tenge ($6.70 billion), net income rose from 373 billion tenge ($808 million) to 531 billion tenge ($1.15 billion). Free cash flow shifted from a negative 78 billion tenge ($169 million) in the first quarter to a positive 843 billion tenge ($1.83 billion)—primarily due to dividends received.

KMG’s share of profit in joint ventures and associates for the first half of the year increased by 53.9% to 537 billion tenge ($1.1 billion, hereinafter using the exchange rate from KMG’s financial statements), primarily due to higher oil prices and the results of Tengizchevroil and Mangistau Munaygaz. Dividends rose by 5.4% compared to last year to 500 billion tenge ($1.03 billion), with 441 billion tenge ($907 million) coming from Tengizchevroil. Consequently, adjusted net income—which specifically accounts for dividends—grew at a much slower rate, rising 31.4% to 867 billion tenge ($1.78 billion). Accordingly, adjusted EBITDA increased by only 27.7% to 1.62 trillion tenge ($3.33 billion).

KMG’s total debt amounted to 3.41 trillion tenge ($7.1 billion); in tenge terms, it has decreased by 3.2% since the beginning of the year, while in dollar terms it has increased by 1.8%. Net debt increased 2.6-fold to 983 billion tenge ($2.05 billion), as cash and deposits—which are deducted when calculating net debt—decreased by 22.9% to 2.43 trillion tenge ($5.05 billion). The company attributes this primarily to the purchase of bonds issued by its parent fund, Samruk-Kazyna.

The half-year production figures appear weaker than the financial results: oil and gas condensate production fell by 4.6% to 12.44 million metric tons, while gas production declined by 4.7% to 5.46 billion cubic meters. However, the decline occurred entirely in the first quarter; which the company attributes to a transformer fire at the Tengiz field and restrictions on oil acceptance by the Caspian Pipeline Consortium (CPC), causing KMG’s total production to fall by 12%. Production at Tengiz had returned to its design level by the end of March.

Based on the half-year results, KMG’s production in the second quarter rose to approximately 6.79 million metric tons—a 2.5% increase compared to the same period in 2025. At Tengiz, production totaled about 2.18 million metric tons, which is roughly 8% higher than last year’s level. Thus, the half-year decline in production largely reflects the impact of the January disruption rather than the situation at the end of the reporting period.

Following the release of its financial results, KMG shares on the KASE closed
on 08/26/18, fell 0.17% from the previous close to 34,790.06
tenge.

This article was AI-translated and verified by a human editor