Kazmunaigas EP Says Cash Flow Stabilises

Reuters

ALMATY, July 4 (Reuters) - Kazakh oil producer KazMunaiGas Exploration and Production (KMG EP) has stabilised its cash flow, it said on Monday, as oil prices recover.

In a statement on Monday, KMG EP said it was cash flow neutral in May and posted a consolidated net income of 1.793 billion tenge (about $5 million) in January-May. It did not provide a comparative figure for 2015.

Parent company KazMunayGaz (KMG NC) asked KMG EP's minority investors last month to give it greater control over the London-listed upstream subsidiary and said it was necessary for a turnaround in the operational performance of KMG EP.

Independent directors at KMG EP have urged shareholders to vote against the proposal at a meeting in August, saying it would weaken corporate governance.

Kazakhstan's national oil company has a 58 percent stake in KMG EP. Minority shareholders, including Chinese sovereign wealth fund China Investment Corporation, and funds overseen by managers including BlackRock own 34 percent.

(Reporting by Olzhas Auyezov, editing by Louise Heavens)

Copyright 2016 Thomson Reuters. Click for Restrictions.

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