OREANDA-NEWS. September 01, 2011. Zhaikmunai released its 1H11 IFRS financials and an operational update today (30 Aug). The results were very impressive: revenue increased by nearly 69% YoY and 40% QoQ due to growth in both production and oil prices. EBITDA increased by 69% YoY and 63% QoQ, while net income nearly doubled YoY (+84%) and more than doubled QoQ (+124%). EBITDA and net income margins remained solid (59% and 29%, respectively) and demonstrated positive dynamics both YoY and QoQ, reported the press-centre of ATON.
 
The company noted that it did not include sales from its GTF test production run (\\$11.6mn in 1H11) in revenue, as in accordance with IFRS such sales should be offset against expenditures. Management expects full commissioning of GTF by the end of Sep 2011, so revenues and EBITDA related to its production will be reported from 4Q11.
 
Bottom line
ZKM has finally reported excellent results, which were long awaited. We believe the news is positive for the stock, but the sustainability of production growth will remain a major concern in the near term.