“Samruk-Kazyna” JSC announced IFRS consolidated financial report for 2015 and Development plan for 2016-2020.

According to the data, consolidated net income of “Samruk-Kazyna” made 304,8 billion tenge and increased by 30% compared to 2014.

The increase is mainly due to the positive effect of currency differences. However, the fall in oil prices on world markets, resulting in decrease of the share in the income of the joint ventures and associated companies, as well as slowdown in the economic growth in China and Russia, have influenced the results of operations by segment and negatively impacted on consolidated net income,» Managing Director for Finance and Operations-member of the Management Board of the Fund Yelena Bakhmutova explained at the press conference in Astana.

Operating EBITDA amounted to 638.9 billion tenge, which is lower by 35% than in 2014 due to the fall in oil prices on world markets by 47%. It is known that in 2015 the average cost of oil barrel was $ 52 compared to $ 99 in 2014.

“Debt/EBITDA” amounted to 4,93 and increased by 12,3% compared with the result of the last year, when the indicator was 4,39. “This is mainly due to increase of the consolidated debt of the Fund as the result of the significant devaluation of tenge,” Mrs Bakhmutova noted.

The Fund’s management expects that 2016 year will be extremely difficult in economic terms, nevertheless it is planned to complete it at profit.

In 2016-2020, the Fund will have to work in difficult economic conditions, demand reduction, low commodity prices and high leverage on the portfolio level. However, despite these difficult conditions, «Samruk-Kazyna» JSC plans to have a net profit at 100.8 billion tenge by the end of 2016. In the next years, due to the effect of the implementation of strategic initiatives, consolidated net income of the Fund will grow steadily,” Managing Director for Strategy and Assets Portfolio of «Samruk-Kazyna» JSC Baljeet Grewal told at the press conference.

«In order to ensure profitability and economic efficiency, -Mrs Grewal explained, -«Samruk-Kazyna» JSC will focus on 6 priority development initiatives, in particular, on the implementation of the transformation program and privatization, the development of investment portfolio with an emphasis on the creation of new industries, increasing the efficiency of the portfolio companies, financial stability. The Fund’s priority remains the effective management of the portfolio companies to enhance their long-term value.»

For the purpose of the subsequent successful development, commercial unit of the Fund will determine the strategy and key directions of the portfolio companies, transforming strategic assets through privatization and reinvestment of funds received assets into the national economy. The Fund will continue to invest in different new and emerging companies in the amount of 98 billion tenge in 2016 and 63 billion tenge in 2017.

The total amount of investments in 2016-2020 in new and emerging companies of the country will make approximately 215 billion tenge. “Beginning from 2016, the Fund will actively search investment opportunity and develop new and emerging companies to diversify and upgrade its investment portfolio,” she added.

According to the Development plan, the growth of assets in 2016 is planned at 8% (22,5 trillion tenge) and at 13% (23,7 trillion tenge) by 2020.