Kazakhstan's oil & gas and mining companies sharply up profit

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ASTANA. KAZINFORM - Kazakhstan's oil & gas and mining companies had a net profit of 2.8 trillion tenges in 2016, which is 60 percent more than in 2015, Finprom.kz analytical center's report said.

The growth in profits in 2016 was forced by an increase in hydrocarbon prices in world markets to $55 per barrel, after a fall below $40 in 2015.

Despite such a sharp increase, the net profit has not yet reached the 2012-2014 levels, when it ranged from 4.5 to 5 trillion tenges.
2015 was the most unsuccessful year for the oil & gas and mining companies in Kazakhstan after the 2009-2010 crises, trend.az reports.

The 60 percent increase in net profit in 2016 resulted from expenses cut along with an 11 percent increase in incomes. The revenues of large, medium and small oil & gas and mining companies amounted to 11.5 trillion tenges in 2016.

The revenues of small companies increased by 688 billion tenges, or almost 2 times in the reporting period, while revenues of large and medium producers increased by only 484 billion tenges, or 5 percent. The revenues rose mainly thanks to the proceedings from sales which increased by almost 2 trillion tenges in 2016.

The profitability of the oil & gas and mining sector reached 32 percent in 2016, compared to 20.5 percent a year earlier. Small enterprises had more profit - 42 percent - compared to 31 percent in large and medium industries.

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