Record Profits on Lower Production: The Secret Behind KazMunayGas’s Financial Leap

KazMunayGas reported a net profit of 904 billion tenge for the first half of 2026, marking an impressive 69.1 percent increase compared to the same period last year. Interestingly, this financial milestone came alongside a 4.6 percent drop in oil and gas condensate production, totaling 12.44 million tons.

During the six-month period, total revenue climbed 23.7 percent to reach 5.57 trillion tenge. EBITDA jumped 45 percent to 1.66 trillion tenge, while free cash flow settled at 765 billion tenge.

The primary catalyst behind these robust financial results was the surge in global oil prices. Between January and June, the average price of Brent crude rose to $92.31 per barrel, up from $71.87 the previous year. Although this represents the global benchmark rather than the exact realized selling price for KazMunayGas, it heavily influenced market performance.

Meanwhile, other operational metrics saw a decline: oil and gas production fell by 4.6 percent, gas output dropped by 4.7 percent, and refining volumes dipped 1.5 percent. Conversely, oil transportation rose by 4 percent to reach 43.28 million tons.

Additionally, the company’s share of income from joint ventures and associates surged by 53.9 percent to 537 billion tenge, fueled significantly by dividends from Tengizchevroil, which grew from 328 billion to 441 billion tenge.

On the other hand, the company’s net debt spiked by 162.2 percent to 983 billion tenge. KazMunayGas attributed this shift primarily to a decrease in cash and deposits, noting that a portion of the funds was reallocated into Samruk-Kazyna bonds.

Samruk-Kazyna holds a 90.42 percent stake in KazMunayGas, and the company previously distributed 350 billion tenge in dividends to its shareholders based on 2025 results.