Statement in response to media speculation
JSC National Company KazMunayGas (KMG or the Company), Kazakhstan’s national company for exploration, production, refining and transportation of hydrocarbons, recently notes media speculation regarding an IPO of the Company. KMG confirms that it continues to examine opportunities to support its continuing growth and development, including a potential IPO. However, no final decision has been made to progress with such a transaction, nor its potential structure, timeframe or advisors. KMG will inform the market of any developments as appropriate and in line with regulatory requirements.
The Company is focused on executing its proven growth strategy, integrating international best practices across all of its operations and further improving its financial profile. In 2017-2018, KMG:
- bought out ordinary and preferred shares of its public subsidiary JSC KazMunayGas Exploration Production from the public market and fully integrated it into KMG;
- secured new terms for its Eurobonds, which allows to execute its IPO;
- completed a number of large capex projects, including the upgrade of refineries, construction of gas transportation facilities and transformation of a number of critical business systems, which allows to obtain a significant benefits in the midterm perspective;
- continued to build its strong free cash flow profile;
- further enhanced its overall financial position, as evidenced by the upgrade of the Company’s credit rating by Standard & Poor’s to BB from BB- in November 2018.