BMB Munai Inc (KAZ, Financial) filed Quarterly Report for the period ended 2009-12-31.
Bmb Munai Inc has a market cap of $59.4 million; its shares were traded at around $1.18 with and P/S ratio of 0.9.
During the three months ended December 31, 2009 we realized revenue from oil sales of $13,894,712 compared to $4,883,790 during the three months ended December 31, 2008. The significant contributing factors to the 185% increase in revenue were a 113% increase in the price per barrel we received for oil sales because of increased world oil prices and increased sales to the export market coupled with a 33% increase in sales volume as a result of increased production and purchases of oil from a third party. During the three months ended December 31, 2009 and 2008 we exported 89% and 39% of our oil, respectively, to the world markets and realized the world market price for those sales. Revenue from oil sold to the world markets made up 95% and 51% of total revenue, respectively, during the three months ended December 31, 2009 and 2008. We anticipate production to remain fairly constant and currently anticipate revenues will be flat quarter-on-quarter in upcoming quarters.
A mineral extraction tax replaced the royalty we were paying under the prior version of the tax code. The rate of this tax depends upon annual production output. The new code currently provides for a 5% mineral extraction tax rate (6% starting from 2012 and 7% starting from 2013) on production sold to the export market, and a 2.5% tax rate (3% in 2012 and 3.5% starting from 2013) on production sold to the domestic market. During the three months ended December 31, 2009, mineral extraction tax paid to the government amounted to $998,367. During the quarter ended December 31, 2008, royalty payments were $148,383.
Rent export tax is calculated based on the export sales price and ranges from as low as 0% if the export sales price is less than $40 per barrel to as high as 32% if the price per barrel exceeds $190. During the three months ended December 31, 2009 rent export tax paid to the government amounted to $ 2,966,025. We were not subject to the rent export tax during the three months ended December 31, 2008.
Total Other (Expense)/Income. During the three months ended December 31, 2009 we realized total other loss of $280,569 compared to total other income of $89,913 during the three months ended December 31, 2008. The 412% decrease in other income between the respective quarters is largely attributable to a $293,438 foreign exchange loss we realized during the quarter ended December 31, 2009 resulting from the weakening of the Kazakh Tenge against the U.S. Dollar.
Net Income/(Loss). For the foregoing reasons, during the three months ended December 31, 2009 we realized net income of $607,081 or $0.01 per share compared to net loss of $8,292,982 or loss $0.18 per share for the three months ended December 31, 2008.
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Bmb Munai Inc has a market cap of $59.4 million; its shares were traded at around $1.18 with and P/S ratio of 0.9.
Highlight of Business Operations:
The contract we hold follows the above format. Our annual work program year ends on January 9 each year. From the beginning of the exploration stage of our contract through January 9, 2010, our minimum mandatory expenditure requirement totaled $59,090,000. During that time period, we expended $280,660,000 in exploration activities, including the drilling of 24 wells. Our minimum annual expenditure requirements are: $21,520,000 from January 2010 to January 2011; $27,300,000 from January 2011 to January 2012; and $14,880,000 from January 2012 to January 2013.During the three months ended December 31, 2009 we realized revenue from oil sales of $13,894,712 compared to $4,883,790 during the three months ended December 31, 2008. The significant contributing factors to the 185% increase in revenue were a 113% increase in the price per barrel we received for oil sales because of increased world oil prices and increased sales to the export market coupled with a 33% increase in sales volume as a result of increased production and purchases of oil from a third party. During the three months ended December 31, 2009 and 2008 we exported 89% and 39% of our oil, respectively, to the world markets and realized the world market price for those sales. Revenue from oil sold to the world markets made up 95% and 51% of total revenue, respectively, during the three months ended December 31, 2009 and 2008. We anticipate production to remain fairly constant and currently anticipate revenues will be flat quarter-on-quarter in upcoming quarters.
A mineral extraction tax replaced the royalty we were paying under the prior version of the tax code. The rate of this tax depends upon annual production output. The new code currently provides for a 5% mineral extraction tax rate (6% starting from 2012 and 7% starting from 2013) on production sold to the export market, and a 2.5% tax rate (3% in 2012 and 3.5% starting from 2013) on production sold to the domestic market. During the three months ended December 31, 2009, mineral extraction tax paid to the government amounted to $998,367. During the quarter ended December 31, 2008, royalty payments were $148,383.
Rent export tax is calculated based on the export sales price and ranges from as low as 0% if the export sales price is less than $40 per barrel to as high as 32% if the price per barrel exceeds $190. During the three months ended December 31, 2009 rent export tax paid to the government amounted to $ 2,966,025. We were not subject to the rent export tax during the three months ended December 31, 2008.
Total Other (Expense)/Income. During the three months ended December 31, 2009 we realized total other loss of $280,569 compared to total other income of $89,913 during the three months ended December 31, 2008. The 412% decrease in other income between the respective quarters is largely attributable to a $293,438 foreign exchange loss we realized during the quarter ended December 31, 2009 resulting from the weakening of the Kazakh Tenge against the U.S. Dollar.
Net Income/(Loss). For the foregoing reasons, during the three months ended December 31, 2009 we realized net income of $607,081 or $0.01 per share compared to net loss of $8,292,982 or loss $0.18 per share for the three months ended December 31, 2008.
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