KazTransOil increases 2017 oil turnover in line with expectations

Altynay IbraimovaJanuary 26, 2018

Today KazTransOil announced its 2017production results, which indicate the turnover increase by 12%.

In 2017 the volume of KazTransOil separate oil transportation increased by 6% yoy to 46.3 mn tons. On a consolidated basis the transporation volume has increased by 3% yoy (58.5 mn tons).

Turnover volumes have indicated more dynamic growth. For the past year the turnover on separate and consolidated basis increased by 12%.

Total volume of crude oil and condensate mining in Kazakhstan in 2017 totaled 86.2mn tons., (+10.5%), of which 14.8mn tons (17%) were delivered by KazTransOil to the refineries.

Fig 1. Operational results

 

Name

units

2016

2017

yoy

3Q2017

4Q2017

qoq

Volume - cons

ths tons

56 575

58 537

3%

14 782

14 831

0%

Volume - non-cons

ths tons

43 797

46 293

6%

11 790

11 771

0%

Turnover - cons

ton*km

43 130

48 360

12%

12 541

12 721

1%

Turnover - non-cons

ton*km

35 635

39 823

12%

10 348

10 517

2%

Source: Company data, HF estimates

 

Our view

In general, operating results correspond to our forecasts. We suppose that considering the peak oil mining in Kazakhstan in 2017, the operational results of the company were predictable enough. Nevertheless, in our opinion, this news will have a positive impact on the KTO share price, which is quoted at T1460/share, which will partially contribute to reaching our target price of T1634/share. We keep the BUY recommendation.