KMG International generates $80M in revenue in 2017

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ASTANA. KAZINFORM - At year-end 2017, KMG International had positive operational and financial results according to the audited financial statements, the press service of the company reports.

The company's Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) reached $242 million, which is over 20% and almost three times higher than in 2016 ($204 million) and 2012 ($79 million), respectively.

"At the same time, net income equaled $80 million, or six times higher than in 2016. This demonstrates a substantial improvement as compared to the negative result of $208 million registered in 2012.

Thus, at the end of 2017, KMG achieved record figures for its nearly 40-year history, and for the ten-year period since the acquisition and integration of JSC NC "KAZMUNAYGAS" into the national oil and gas company," the statement says.

The upward trend and high operational performance were mainly fueled by the successful completion of the modernization program and the increased productivity of the main refinery - Petromidia Navodari. It has now become the largest oil refinery in Romania and one of the most technologically advanced in the Black Sea region.

After the modernization, Petromidia's refining volume rose from 3.8 to 5 million tons of crude, it proceeded with producing Euro 5 fuel, and the refinery yield reached 94.6%.

Between 2012 and 2017, the crude oil refining cost decreased from $28 to $16 a ton. Besides, after modernization, Vega, which is the second refinery of the group, produces polypropylene and high and low-density polyethylene.

"Our further development goals are to diversify business and strengthen standing in the countries of Central and Eastern Europe, the Black Sea region. These targets are achievable upon the support of the only shareholder and the phased implementation of projects within the framework of the Group's Global Strategy," said Zhanat Tussupbekov, CEO of KMG International.

In the period from 2012 to 2017, KMGI also managed to halve the Group's total debt from $925 million in 2012 to $416 million in 2017. A significant positive impact was made by measures improving budgetary control and developing risk management policies (hedging, exchange rate influence).

In addition, the consolidation and centralization of financing lines contributed to a reduction in net debt by more than three times (down to $194 million in 2017), as well as a significant improvement in the cash flows available at the group level.

In 2017, KMGI's gross turnover reached $9.5 billion, which is 36% higher than in 2016.

In addition, a big impact on the net income value and trends was due to such factors as increased refining of crude and sales of oil products in Romania and the region, optimization and improvement of the cost of refining, logistics and sales, and the implementation of a number of programs for the transformation of current activities to reduce operational costs and improve profitability.

 

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