Company News -- Kazakhstan Weekly News

Oil & Gas

Shymkentnefteorgsintez (the Shymkent Oil Refinery, SOR) has presented to the KASE its consolidated financial statement for 1998. Compared with 1997, the company increased its sales by 22.6% to KZT 18.7bn. Earnings after tax were KZT 3.13bn. Net income in 1998 was KZT 2.4bn, down by 4.5% compared with the previous year. This was due to the fact that the refinery has transferred KZT 774.9m to the Astana Fund and its total provisions have decreased by KZT 45.97m. The company's equity increased by 11.0% to KZT 11.3bn through a revaluation of assets. (IRBIS)

As reported by Kazakhstanskaya Pravda, the SOR major shareholder, Kazkommertsbank, and Canada's Hurricane Hydrocarbons Ltd have signed a Letter of Intent and will continue negotiations on the possible merger of the two companies. The parties also agreed on the joint marketing of petroleum products and signed a sales contract for 170 tonnes of crude oil.

Mining & Metals

Production at the Aksu Ferroalloy Plant (based in the Pavlodar region in the north of Kazakhstan) increased by 72.5% in 1Q99 compared with the previous year. The company also reported a 46.4% increase in sales in the same period. According to its press service, the plant paid KZT 211m in taxes in 1Q99. (Interfax)

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The National Securities Commission has awarded the status of Open Public Company to the Ust-Kamenogorsk Titanium and Magnesium Plant based on the company's application and in compliance with the NSC resolution regulating the awarding and revocation of this status. (IRBIS)

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A well-informed Interfax source at Tselinny Mining and Chemical Plant (Kazakhstan's uranium producer based in Central Kazakhstan) has reported that the executive director of Sabton Limited, a subsidiary of Africa Israel Investment Ltd, and the general manager of the Tselinny Plant signed a sales agreement for the plant on 30 April. The property was sold to Sabton Limited at an auction held on 16 April for KZT 36m (USD 0.3m). The buyer has pledged to pay wage arrears amounting to KZT 270m (USD 2.4m) within two years starting on 1 June. (Interfax)

Telecommunications

The National Securities Commission has awarded the status of Open Public Company to the national telecommunication company Kazakhtelecom. (IRBIS)

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A digital long-distance exchange, 5 ESS, went into operation in the town of Taraz (Southern Kazakhstan) last week. The exchange has a capacity of 3,000 channels and costs USD 850,000. The president of Kazakhtelecom, Nurlan Sakipov, told Interfax that the exchange has been supplied by the U.S. company Lucent Technologies, with whom Kazakhtelecom signed a framework agreement early this year. Under this agreement the U.S. company will also supply telecommunication equipment to four Kazakhstani regional centres. (Interfax)

Banks

The Central European magazine has named Kazkommertsbank "the best Kazakhstani bank in 1998", for the second year in a row. Kazkommertsbank's investment arm, Kazkommerts Securities was also named as the best brokerage company in Kazakhstan. In his comments on the event, the bank's Managing Director, Oleg Kononenko, said Kazkommertsbank had been awarded this title because of the results achieved in 1998. However, the magazine particularly noted the impeccable foreign debt servicing by the bank and its ability to tap international markets despite the severe financial crisis that hit all developing countries in 1997-1998. (Kazakhstanskaya Pravda)

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The European Bank for Reconstruction and Development (EBRD) and the International Financial Corporation may provide loans to the Bank TuranAlem at the beginning of this summer, one of the bank's top officials, Arman Dunaev, told Interfax. He said that the EBRD is expected to lend USD 10-12m to the bank for a three year period and that part of the loan, worth USD 3m, may be converted to shares in the bank later on. The IMF's loan will total USD 15m and will be extended for 7 years with an option of a debt-to-share swap of USD 5m. No mention was made of the stakes in the bank to be converted in both cases. The bank also plans to sign a USD 12-16m loan agreement with a syndicate of nine banks in early June. Thus far, five banks have confirmed their participation in the syndicate, including ING Barings, American Express and others. (Interfax)

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