Company News -- Kazakhstan Weekly News

Oil & Gas

JSC EmbaMunaiGas (a non-listed securities board on the KASE) has announced its merger with another Kazakhstani oil and gas producer, TenizMunaiGas. Both companies are based in Western Kazakhstan. The new company, KazakhOil-Emba, will have a charter capital of KZT 4.8bn (USD 405m) which will be divided into common and preferred shares with a face value of KZT 250 (some USD 2) each. A general shareholders' meeting of KazakhOil-Emba is scheduled for 23 June to address the issues arising from the merger (Kazakhstanskaya Pravda)

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The national oil and gas company KazakhOil has purchased a 45% stake in the JSC Atyrau Oil Refinery (AOR) from the Swiss company Telf AG. The relevant agreement was signed on Friday, 21 May. As a result of the transaction, KazakhOil currently owns 86% of the refinery. (Interfax)

Mining & Metals

According to its report submitted to the KASE, Ust-Kamenogorsk Titanium and Magnesium Plant (Listing A on the KASE) is currently carrying out preparatory works to develop a number of ilmenite ore deposits in the north and east of Kazakhstan. So far, the plant has used mostly imported ore. The Satpaevskoe deposit, Eastern Kazakhstan region, is considered the most promising because of the quality of its ore and its proximity to the plant. It will, therefore, be the first to develop in the coming years once the necessary investment has been raised. The planned annual output of ilmenite concentrate is 15,000 tonnes in the first phase of operation and 81,400 tonnes in the second phase.

The plant is also building a smelter unit to produce titanium slag from the concentrate. The first furnace of the smelter is now 99% ready and will be launched in 2Q99. (IRBIS)

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Pavlodar-based JSC Aluminium of Kazakhstan (Listing B on the KASE) has presented to the KASE the financial statement for 1Q99. The company's shareholder equity decreased by KZT 1.80, or by 24.6% compared with the same period last year. The book value of one share increased by KZT 6.05 to KZT 131.23 (USD 1.5). Given the reduction in shareholder equity, the increase was due to the withdrawal of some of the company's outstanding shares. The net income of Aluminium of Kazakhstan decreased by 60.6% to KZT 213.9m (USD 2.5m) in comparison with that in 1Q98. This was as a result of a 19.6% reduction in sales whereas production costs of the product sold decreased by 13.2%. The company's total assets increased by 9.9% to KZT 13bn (USD 153m). (IRBIS)

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The Aksu Ferroalloy Plant (AFP) based in the north of Kazakhstan has begun paying dividends for 1997 to the holders of the company's preferred shares. The dividend is 10% of the face value of each KZT 1,000 (USD 8.5) share. Altogether the AFP is to pay out KZT 28m (USD 0.2m).

As reported by the company's press service, in 1Q99 the plant increased the production of ferroalloys by 51.3% and sales by 41.2% compared with the same period of 1998. At present, the company has a net profit in excess of KZT 1.5bn (USD 12.7m).

The Aksu Ferroalloy Plant is part of the transnational company Kazchrome. (Interfax)

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Since the beginning of May, Kazakhstani iron ore producer, Sokolovsko-Sarbaisky Mining and Concentrating Plant (based in Northern Kazakhstan) has started paying 1997 dividends to holders of preferred shares. The total sum due is KZT 162m (about USD 1.37m). The decision on the dividend was made by company's shareholders at a meeting in early February. This dividend is 25% of the face value of share (KZT 1,000).

The current production at the plant is 360,000-400,000 tonnes of iron ore per month. (Interfax)

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The Kazakhstani agency for reorganisation and liquidation of companies has announced an auction to sell the property of the gold producer Kazakhaltyn. The Dutch auction is scheduled for 28 May. The starting price is set at KZT 1.555bn (USD 13m) and a minimal price at KZT 121m (USD 1m). The buyer will also be required to pay the company's debts and not to discontinue employment contracts with company employees. The auction registration is KZT 12.1m (USD 0.1m). If for any reason the auction doesn't take place on the above date, it will be held on 8 June. (Kazakhstanskaya Pravda)

Banks

Kazkommertsbank (Listing A on the KASE) has presented to the KASE the minutes of the shareholder meeting held on 26 April 1999. The document gives some financial results of 1998. The bank, in particular, reported a 21.5% increase in net profit to KZT 1.046bn (USD 13.4m) at the end of 1998 from KZT 861m (USD 11.4m) at the end of 1997. The bank's shareholder equity increased by 13.2% to KZT 9.537bn (USD 122m). The loan portfolio increased on the average by 143% on the year. Also, at that meeting, the bank's shareholders distributed part of the bank's retained earnings, elected a new Board of Directors, and appointed two independent auditors for 1999, Kazakhconsulting and Deloitte & Touche. The former will oversee compliance with Kazakhstani accounting standards and the latter with international standards. (IRBIS)

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Kazakhstan's three largest second-tier banks, Kazkommertsbank, BankTuranAlem, and Halyk Savings Bank of Kazakhstan, have recently published their balance sheets and income statements for 1Q99 in Kazakhstani newspapers. In the reported period, Kazkommertsbank had a net income of KZT 476,337,000 (USD 5.6m). BankTuranAlem is in second position in terms of net income with the KZT 259,197,000 (USD 3.03m) and HSBK's is third—KZT 52,592,000 (USD 615,615). (Delovaya Nedelya)

Telecommunications

Kazakhtelecom and The Bank of New York have successfully implemented a programme whereby the company's shares, in the form of American Depository Receipts (ADR), were upgraded from private placement (144A) to level I. The relevant decision was made by the US Securities Commission. (Reuters)

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