To investors

Security in Kazmunaigas:
Our way forward

INTRODUCTION

АО «NMSK «Kazmortransflot» was established by Decree of the Government of the Republic of Kazakhstan № 1239 from 4 December 1998.

On October 21, 2013, АО «NMSK «Kazmortransflot» was transformed into «NMSK «Kazmortransflot» LLP (protocol of SD JSC NC «KazMunayGas» № 9/2013 p.3 from 20.06.2013г.). As of December 31, 2020, the authorized capital of KMTF is 11 575 721 thousand KZT.

The company is a national operator of sea and coastal shipping and represents the interests of Kazakhstan in the water area of the Caspian Sea. Currently, KMTF carries out the following activities: marine oil transportation; provision of forwarding services; provision of fleet services; provision of fleet support services for offshore operations and office space rental.

Marine oil transportation includes the transportation of oil to the Caspian ports of Makhachkala (Russia), Baku (Azerbaijan), Turkmenistan and in the open seas.

The asset structure of «NMSK «Kazmortransflot» LLP includes:

merchant fleet: 3 oil tankers with deadweight of 12 000 tons – “Astana”, “Almaty” and “Aktau”; as well as 2 «Aframax» type oil tankers – «Alatau» and «Altai» with deadweight of 115 000 tons.
fleet support for offshore operations: 8 platform barges of the «KMG» series with a carrying capacity of 3 600 tons; 3 tugs – «Talas», «Emba» and «Irgiz».
specialized fleet: 2 MCV class vessels – «Berkut» and «Sunkar», and a container ship «Barys».
dry cargo fleet: 4 dry cargo ships – «Turkestan», «Beket-Ata», «Atameken» and «Zhibek Zholy».

Brief information about the structure of the company's assets

№ п/п	Name of organization in the structure of NMSK Kazmortransflot LLP	Share	Included in consolidation	Consolidation method (full, proportional, equity, value)
1	Kazmortransflot Ltd	100%	Yes	Full
2	Kazmortransflot UK Ltd	100%	Yes	Full
3	Alatau Shipping ltd	100%	Yes	Full
4	Altai Shipping ltd	100%	Yes	Full

ANALYSIS OF THE COMPANY'S ACTIVITIES

1. The production program

(thousand tons)

Sl. No.	Indicators	2017	2018	2019	2020		Growth rate
Sl. No.	Indicators	fact.	fact.	fact.	plan.	fact.	Growth rate
А	1	2	3	4	5	6	7=6/5	8=6/4
1	All oil transportation, including:	6 951	7 077	10 728	5 580	8 990	161%	84%
1.1	Across the Caspian Sea	2 480	2 738	543	540	629	117%	116%
1.1.1	in the direction of Aktau-Makhachkala	662	1 875	505	540	533	99%	106%
1.1.2	in the direction of Aktau-Baku	234	0	0	0	0
1.1.3	in the direction of Turkmenistan-Makhachkala	137	0	38	0	23		59%
1.1.4	in the direction of Makhachkala (Yu.Korchagin)-Baku	1 447	863	0	0	74
1.2	Across the high seas	4 471	4 339	10 185	5 040	8 361	166%	82%
1.2.1	in the direction to the Black Sea	3 024	1 861	3 678	2 880	3 420	119%	93%
1.2.3	in the direction outside the Black Sea	1 447	2 478	6 507	2 160	4 941	229%	76%

Oil transportation

The total volume of oil transportation by «NMSK «Kazmortransflot» LLP for 2020 amounted to 8 990 thousand tons of oil, or 161% in relation to the planned indicator (5 580 thousand tons).

Across the Caspian Sea the volume of oil transportation in 2020 amounted to 629 thousand tons or 117% in relation to the planned indicator (540 thousand tons). Basically, tanker shipments of Kazakhstani oil from the port of Aktau to the port of Makhachkala were carried out from the resources of AO «Karazhanbasmunai».

Across the high seas the volume of oil transportation in 2020 amounted to 8 361 thousand tons, or 166% of the plan (5 040 thousand tons). On October 30, 2018, a Framework Agreement on supplies and transportation was concluded between JSC NC «KazMunayGas», «KMG International N.V.» and «NMSK «Kazmortransflot» LLP, which made it possible to improve the production indicators of oil transportation across the high seas, there is an over-fulfillment in comparison with the planned indicator.

2. Main consolidated financial and economic indicators

(million tenge)

№ п/п	Indicators	2016	2017	2018	2019		Growth rate by years
№ п/п	Indicators	fact	fact	fact	plan	fact	Growth rate by years
А	1	2	3	4	5	6	7=3/2	8=6/5	9=6/4
1	Revenues, including:	23 031	23 832	44 562	43 229	97 293	103%	225%	218%
1.1	Operating income	22 457	22 505	43 092	43 110	96 246	100%	223%	223%
1.2	Financing income	343	52	46	33	125	15%	383%	275%
1.3	Income from non-core activities	230	1 274	1 424	87	922	554%	1060%	65%
2	Costs, including:	22 536	23 758	38 104	44 071	91 584	105%	208%	240%
2.1	Cost price	17 716	19 642	29 153	40 164	72 783	111%	181%	250%
2.2	General and administrative expenses	2 515	2 291	3 155	2 594	2 801	91%	108%	89%
2.3	Implementation costs	54	40	194	25	1 145	74%	4495%	591%
2.4	Financing costs	1 502	1 138	2 134	1 219	1 877	76%	154%	88%
2.5	Non-core expenses	748	648	3 468	70	12 978	87%	18541%	374%
3	Profit / loss before tax	495	74	6 457	-842	5 709	15%	-678%	88%
4	CIT expenses	-1 978	321	3 515	0	1 876	-16%		53%
5	Total profit	2 473	-247	2 942	-842	3 833	-10%	-455%	130%
6	Capital investments	1 246	29 265	11 934	1 409	1 359	2348%	96%	11%

Revenues of «NMSK «Kazmortransflot» LLP for 2020 amounted to 75 481 million KZT, which is 147% of the planned indicator. In relation to the same period last year, the income amounted to 78%.

Income from the base activities of the company for 2020 amounted to 73 962 million KZT, which is 144% of the planned indicator. The growth was due to the realization of the production program by 61%. In relation to the same period last year, the income amounted to 77%.

Income from financing for the reporting period amounted to 128 million KZT or 557% of the plan.

Income from non-core activities for the reporting period of the current year amounted to 1 391 million KZT.

Expenses for 2020 of NMSK Kazmortransflot LLP amount to 67 969 million KZT, which is 186% of the plan. In relation to the same period, expenses amounted to 74%.

Expenses for the base activities of the company for 2020 amounted to 51 984 million KZT or 162% of the plan. The growth is due to the availability of additional resources from shippers in the high seas, respectively, tankers were chartered, in this regard, there were additional costs for a voyage charter.

For 2020, general and administrative expenses amounted to 3 114 million KZT or 108%. In relation to the same period, expenses amounted to 111%.

Costs of enforcement amounted to 690 million KZT. The excess arose in the costs of brokerage commissions, and this is due to the attraction of a leased fleet, as well as the search for clients for our own fleet («Altai» and «Alatau» aframaxes), to provide services for the oil transportation in the high seas. Compared to the same period last year, expenses amounted to 60%.

Financial expenses amounted to 1 254 million KZT or 77% of the plan. Compared to the same period last year, expenses are 67% due to the decrease in the average exchange rate (of currency).

Expenses for non-core activities amounted to 10 927 million KZT. In 2020, an impairment was charged on the company's vessels.

The total profit of «NMSK «Kazmortransflot» LLP as a result of financial and economic activities for 2020 amounted to 5 697 million KZT, with the planned level of 11 729 million KZT. The main reason for non-performance is the accrual of impairment on the vessels MCV «Barys», «Berkut», «Sunkar» and other assets in the amount of 10 491 million KZT.