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March 5, 2021

Mr. Azamat Zhangulov Senior Vice President, KazMunayGas: “Kazakh-Romanian business model: A decade of constant evolution to success”

The energy sector offers many challenges for the international big players on a complex and often volatile market. To overcome, to become successful and competitive requires not only consistent investments carried out by resourceful companies, but also the ability and strength to develop a sustainable business and a successful partnership for future growth.

Ten years ago, the national Kazakh oil&gas company, KazMunayGas, was entering the Romanian market by becoming shareholder of Rompetrol, in a period when the market was facing a crisis and when it was difficult to start a new business development project.

Today, KazMunayGas is not only a key player of Kazakhstan’s oil and gas sector, but through KMG International’s evolution, the Group that operates Rompetrol brand, also reached European markets and position itself as a key player in the Black Sea region and a pillar of stability.

Given the ownership structure, KMG International is acting as an integrated company enjoying direct access to crude from Kazakhstan, as well as funding for strategic investments and working capital. Through its business brunches, KMG International is a driver for development both in Romania and Kazakhstan in industrial services, reaching the European markets through its quality products.

You need to have a strategic vision in order to succeed in maintaining the business standards and results on the track and more than that, to adapt and transform, to overcome your own best results and more over to innovate and open new perspectives in the area of activity you are present in. Constantly, we aim to increase the value of both companies, KazMunayGas and KMG International, focus on Kazakh oil & gas market but also in the countries abroad and on the European markets, providing a high level of financial soundness and ensuring a sustainable development”, said Azamat Zhangulov, Senior Vice President KazMunayGas.

KMG International has reached record technological and financial results during the first nine months of 2017, according to the latest data available, unique figures in its history – operational profit (EBITDA) of USD 180 million, 24% higher than the respective result from the similar period of 2016 and a net profit has increased from USD 12.3 million to USD 77.2 million (the value recorded between January and September 2016). The turnover increased with 28%, by USD 6.4 billion.

In October, Petromidia refinery, owned by KMG International, has processed a daily amount of approximately 18,000 tons of raw materials, the highest recorded value in its history of 41 years.

KMGI has been constantly improving its oprational indicators – the quantity of necessary raw materials, the volume of petroleum products sold, the reduction and optimization of the necessary production and distribution costs – , also its financial ones. The optimized and balanced investment program, supported by KazMunayGas together with the efforts of KMG International team, continues to determine and sustain such a performance”, explained  Azamat Zhangulov.

For KazMunayGas and KMG International, this year’s-end balance does not refer only to 2017, but to a 10-year period, a decade that has given the necessary reasons to look forward with confidence and optimism.

Our success in transferred to the states where we carry out our activities. After a decade, we can say that the investments made until the present, the business model implemented and the business partnerships to be developed in the future are the necessary drivers that empower us to be optimistic in regards the further growth of the business. And because we, both Kazakhs and Romanians, share and value our traditions, I would like to wish Happy Holidays to our friends in the countries where we carry our activities and  further more accomplishments for all in the future”, said Azamat Zhangulov.

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