Consolidated financial results according to IFRSFor reader convenience, amounts in USD were converted at the average exchange rate for the applicable period (average exchange rates for 2019 and 2018 were 382.87 and 345.04 KZT/USD, respectively; period-end exchange rates as at 31 December 2019 and 31 December 2018 were 382.59 and 384.20 KZT/USD, respectively).
| UoM | 2019 | 2018 | % | |
|---|---|---|---|---|
| Brent Dated, average | $/bbl | 64.21 | 71.31 | -10.0% |
| Exchange rate, average | KZT/USD | 382.87 | 345.04 | 11.0% |
| Revenue | KZT bln | 6,859 | 6,989 | -1.9% |
| USD mln | 17,915 | 20,255 | -11.6% | |
| Share in profit of JVs and associates, net | KZT bln | 828 | 697 | 18.7% |
| USD mln | 2,163 | 2,021 | 7.0% | |
| Net profit | KZT bln | 1,158 | 694 | 67.0% |
| USD mln | 3,026 | 2,010 | 50.5% | |
| EBITDAStarting from 2019, the Company revised calculation approach of Earnings before interest, taxes, depreciation and amortization (EBITDA), excluding the finance income from the methodology. In the reports for 2019, and for further periods, the Company calculates EBITDA as “Revenue + Share in profit of JVs and associates, net – Cost of purchased oil, gas petroleum products and refining costs – G&A expenses – Transportation and selling expenses – Taxes other than income tax. Financial metrics for prior periods were recalculated respectively. | KZT bln | 1,963 | 1,707 | 15.0% |
| USD mln | 5,126 | 4,947 | 3.6% | |
| FCFStarting from 2019, the Company revised calculation approach of the Free cash flow (FCF), including proceeds from Caspian Pipeline Consortium (CPC) under the “Kazakhstan Note”. The Company calculates FCF as “CFO — TCO prepayments, net — Capex (cash basis) + Proceeds from CPC under the “Kazakhstan Note”. FCF metrics for prior periods were recalculated respectively. | KZT bln | 592 | 416 | 42.4% |
| USD mln | 1,537 | 1,206 | 27.5% | |
| Net debt | KZT bln | 2,361 | 2,175 | 8.6% |
| USD mln | 6,171 | 5,661 | 9.0% |
Despite the ongoing market and geopolitical instability, 2019 was a sustainable and resilient year for KMG. In 2019, we significantly improved our financial indicators, exceeded a certain production plan and fulfilled a number of strategic tasks set by the Shareholder and the Government of the Republic of Kazakhstan.
As part of the development strategy, during the last years KMG balanced out its debt portfolio as a result of refinancing of short-term bonds into long-term ones, KMG aligned the covenants in the documentation for the issuance of Eurobonds and systematically reduced the debt level. KMG also refinanced some loans from US dollars to tenge to minimize the currency risk. In 2019, KMG took all necessary measures to fulfill contractual obligations under TCO crude prepayment.