National companies increasing their profitability
In 2016, cumulative net income of the national companies comprised 240bln tenge.
Positive dynamics in 2016 was gained thanks to effective activity of the national companies within the first three quarters of the year. In H1 2016, the national companies received 146bln tenge of profit. This success was fixed by the results of the 3rd quarter +115.5bln tenge of net income.
At the end of the year, this series of victories stopped and in Q4 2016 the companies incurred 21.4bln tenge losses.
The average level of production profitability in 2016 made 14%.
In order to ensure profitability in 2016, the national companies sharply reduced their spending. Last year, the companies spent approximately 1.7trln tenge on production processes, personnel, sale of goods etc. that is 44% less than their expenditures in 2015. In absolute terms, the sum of reduction exceeded 1.3trln tenge.
Noteworthy to say that the inflow of income in 2016 slowed down too, but this reduction was less significant than spending optimization. In 2016, cumulative volume of national companies’ incomes fell by 25% or by 625bln tenge compared to 2015 and exceeded 1.9trln tenge.
The volume of income from the sale of goods and services decreased by 511bln tenge within a year. The income from financing reduced also by 140.5bln tenge, while the inflow of other earnings rose (including shareholders’ assistance to the amount of 27bln tenge).
Presently, the country is implementing a large-scale programme of state assets privatization till 2020.
The main goal of privatization is to increase efficiency of Kazakhstan’s economy by means of selling governmental assets to private investors interested in their development. As per the plan, by 2020, the share of public property must not exceed the level of OECD countries – 15% of GDP.
Under the privatization plan, Samruk-Kazyna Fund is selling 215 assets which have been divided into two blocks. The first one includes 45 large assets 6 of which will be sold through IPO – these are Kazakhstan Railways, Samruk-Energo, Kazatomprom, Kaspost, KazMunayGas and Air Astana. The second pool includes 170 companies which will be sold to investors by means of electronic auctions.