London-listed Kazakh oil and gas producer KazMunaiGas Exploration Production (RDGZ.KZ) said Wednesday its net income rose 166% on the year to 63.5 billion tenge ($526.8 million) in the first three months of this year.
KazMunaiGas Exploration Production, or KMG EP, said in a statement that the net income rise was "attributable to higher crude oil prices, inclusion of Kazgermunai results, increased financial income, including the accrual of the return on investment" in CITIC Canada Energy Limited.
"A combination of acquisition-led growth, favorable market environment and stringent cost control have allowed us to achieve a record level of net income in the first quarter this year," Chief Executive Askar Balzhanov said.
KMG EP said it saw a KZT9.7 billion increase in net income from the company's recent acquisitions.
KMG EP said its operating expenses were KZT49 billion in the first three months of this year, "approximately at the same level as in the first three months of 2007."
The company said it expected capital expenditure in 2008 to be KZT46 billion, excluding the capital expenditure of Kazgermunai and CITIC.
The company's revenue rose 46% to KZT143 billion "primarily due to an increase in the average realized oil price by 67.3% to $74.94 per barrel," KMG EP said.
KMG EP produced 233,500 barrels of oil per day in the first quarter of 2008, a year-on-year increase of 26.4%.
In April, KMG EP said it would review its production, financial and investment plans following the government's decision to introduce an oil export duty of $109.91 per metric ton. The company had said the financial impact of the duty would be around $800 million a year.
KMG EP's majority shareholder is state oil and gas company Kazmunaigas.