KazMunayGas Profit Falls After Sale of Subsidiary to Russians

Oil production at KazMunayGas enterprises rose by 8.8% in the first half of 2025. At the same time, the company’s net profit declined, Orda.kz reports.

According to KazMunayGas’s financial and production results for the first half of the year, published on September 15, revenue reached 4.5 trillion tenge — equivalent to $8.789 billion. In tenge, the figure increased compared to the first half of 2024, but in dollars, it fell.

A year earlier, KMG earned 4.2 trillion tenge, or $9.4 billion, with the exchange rate difference playing a key role.

Net profit dropped by 2.8% compared to the same period in 2024 — from 550 billion to 534 billion tenge. The company explained that lower oil prices, higher depreciation costs, a weaker tenge, and the sale of an asset to a Russian investor drove this decline. 

The deal generated a one-time income but reduced net profit.

In the first half of 2025, the company sold a 60% stake in Polymer Production LLP as part of a deal with SIBUR Holding PJSC and recorded income from the disposal of a subsidiary in the amount of three billion tenge, the report states.

On the production side, KMG raised oil and gas condensate output across all projects to 13 million tons. The biggest growth came from Tengiz, where production jumped 35.5%.

 Karachaganak rose by 4.6%, while Kashagan declined by 1.4%. Refining volumes at plants in Kazakhstan and Romania increased by 16.5%, exceeding 10.3 million tons.

Among the main risks, KazMunayGas cited:

• Unstable oil prices
• Potential decreases in exports and transportation volumes
• Possible arbitration proceedings (unspecified)

Original Author: Nikita Drobny