Category Archives: Uncategorised

Stock market: Nostrum Oil & Gas

NOV. 25 2016 (The Conway Bulletin) — Amsterdam-based Nostrum Oil & Gas posted a decline in revenues it its Q3 report this week, but that didn’t stop investors buying its stock.

Nostrum’s stock price climbed back to November 2015 levels, seemingly dispersing the tough months of 2016, when oil prices plunged to around $30/barrel.

The company successfully cut costs and hopes to contain the drop in production to around 10% this year. Next year, the company will further reduce costs once it starts sending its oil through the KazTransOil pipeline due to be completed in Q2 2017.

“We look forward to realising a significant decrease in transportation costs once the KTO pipeline connection is complete by Q2 next year,” CEO Kai-Uwe Kessel said in a statement.

“Our focus now turns towards the 2017 drilling programme and delivering our major infrastructure project, GTU3, on time and on budget.”

ENDS

(News report from Issue No. 306, published on Nov. 25 2016)

Kazakhstan-based Nostrum revenues drop

NOV. 23 2016 (The Conway Bulletin) — Kazakhstan-focused Nostrum Oil and Gas posted a 35% fall in revenues for the first nine months of 2016, compared to the same period last year, a slight recovery compared to H1 results. Nostrum said it had successfully cut costs to counter sustained low oil prices. Production averaged 38,900 barrels/day in the reported period, down 12% from 2015. The company said it expects production to average 40,000 barrels/day by year-end.

ENDS

(News report from Issue No. 306, published on Nov. 25 2016)

Kazakhstan imposes restrictions on labour unions

NOV. 23 2016 (The Conway Bulletin) — New York-based NGO Human Rights Watch accused Kazakhstan of deliberately creating mountains of red tape to thwart and frustrate labour unions. In a report entitled: “Kazakhstan: Workers’ Rights Violated, Restricted”, HRW said that the Kazakh elite grew nervous of labour unions after a strike in 2011 ended with police shooting dead several protesters. HRW said that the government had imposed a registration system on labour unions as a way of monitoring their activities.

ENDS

(News report from Issue No. 306, published on Nov. 25 2016)

MTS revenues in Armenia and Turkmenistan drop

NOV. 18 2016 (The Conway Bulletin) — Russian telecoms company MTS published its first quarterly report after discontinuing operations in Uzbekistan, posting a 1.3% decline in revenues in Q3 across its operations in the former Soviet Union, compared to the same period last year. In rouble terms, revenues in Armenia were down 19% to 2.1b roubles and in Turkmenistan they fell by 17% to 1.2b roubles.

ENDS

(News report from Issue No. 306, published on Nov. 25 2016)

Armenia buys Russian missiles

NOV. 18 2016 (The Conway Bulletin) — Armenia has bought a number of Iskander-M missiles from Russia, Armenia president Serzh Sargsyan told Russian media. The Iskander-M missile is one of Russia’s most advanced missile systems. Mr Sargsyan said that Armenia had been obligated to by the missile system to balance against the threat posed by Azerbaijan. Armenia and Azerbaijan are still officially at war over the disputed region of Nagorno-Karabakh.

ENDS

(News report from Issue No. 306, published on Nov. 25 2016)f

Kazakh President says ‘no’ to dynasty

ALMATY, NOV. 23 2016 (The Conway Bulletin) — In an interview with Bloomberg News, Kazakh President Nursultan Nazarbayev appeared to cautiously rule out a straight handover of power to a family member.

The 76-year-old leader also said that he would be prepared to govern for another five year term from 2020 if he felt well enough and had strong enough public support.

Speculation has been mounting for years over Mr Nazarbayev’s succession plans. Many analysts have suggested that Mr Nazarbayev’s eldest daughter, Dariga who is now a senator, may be being lined up to take over from him.

“I’m not envisaging succession for my children, I don’t think that’s a question for us,” he said. “Our transfer of power is spelled out by the constitution.”

This nuanced reply appears to suggest that Mr Nazarbayev’s successor will have to win power through an election, as the constitution states. Western vote monitors, though, have never judged an election in Kazakhstan to be either free or fair.

And, on the victory of Donald Trump in the US presidential election this month, Mr Nazarbayev said he was confident the incoming US President would mend US-Russia relations, a positive step forward for global international relations.

“The best democratisation, say of Russia and all countries, is to have the West in friendly relations with all of us,” he said.

Kazakhstan is dealing with a sharp economic downturn triggered by a collapse in oil prices and a recession in Russia. Mr Nazarbayev also said in the interview that he was looking to strengthen the banking system.

ENDS

(News report from Issue No. 306, published on Nov. 25 2016)

Azerbaijan expects economic growth

NOV. 23 2016 (The Conway Bulletin) — Azerbaijan expects its economy to grow by 1% in 2017 and 1.5% in 2018, a draft budget from the government seen by Reuters showed. The day before, the World Bank reiterated that it expected the economy to contract by 3% this year. Azerbaijan has been particularly hard hit by falling oil prices. Its economy is particularly oil-dependent.

ENDS

(News report from Issue No. 306, published on Nov. 25 2016)

BGEO results on Georgia increase

NOV. 21 2016 (The Conway Bulletin) — London-listed investment holding BGEO posted a 24% growth in revenues in Q3, compared to the same period last year. BGEO’s main assets are Bank of Georgia and Georgia Healthcare Group (GHG). GHG accounted for the group’s largest growth rate. In the first nine months of the year, GHG posted revenues for 290.4m lari ($116.6), up 64.8% from 2015.

ENDS

(News report from Issue No. 306, published on Nov. 25 2016)

Uzbek authorities free political prisoner

NOV. 24 2016 (The Conway Bulletin) — The Uzbek authorities freed from prison 72-year-old Samandar Kukanov, described by human rights groups as one of the country’s longest surviving political prisoners. Human rights activist also said that the authorities in Uzbekistan had released Tohar Haydarov, a convert to Christianity, who was jailed in 2000 on drug related charges. Mr Kukanov, who opposed former president Islam Karimov, was imprisoned for 20 years in 1994 on embezzlement charges. This sentence was extended by two years in 2004. The release of Mr Kukanov may have been timed to soften acting president Shavkat Mirziyoyev’s image before an election on Dec. 4.

ENDS

(News report from Issue No. 306, published on Nov. 25 2016)

Kazakhs cut out imported luxury goods to beat tough economic times

ALMATY/TARAZ, Kazakhstan, NOV. 21 2016 (The Conway Bulletin) — A stubborn, painful economic downturn has wiped 4% off the average Kazakhs’ purchasing power, the ranking.kz website reported, forcing people to cut out luxury items — especially those imported from abroad.

Aiganym Dosmail, who works in an advertising agency in Almaty, said that she had cut out on buying luxury items that had been imported and ballooned in price since the devaluation of the tenge last year.

“I optimise my spending. Previously, I bought a lot of unnecessary stuff and now I buy only those goods that last long and are good quality. It is of course sad that previously marsh- mallows cost 300 tenge and now they cost 800 tenge,” she told the Bulletin.

The tenge lost half its value last year after the government reluctantly cut its peg to the US dollar. Low oil prices and a recession in Russia had pressured the Kazakh economy, and others across the region, into currency devaluations and budget cuts.

Worst hit are importers of luxury goods. Most Kazakhs now can’t afford to buy the foreign goods that they could afford even a year earlier.

Unlike Ms Dosmail, Aigerim Zhanuzak’s hairdressing salon in Taraz in the south of the country has been far less affected. She said that most of her clients are self-styled middle class Kazakhs and that she hasn’t had to put up her costs because she doesn’t have may import costs.

“My salon is targeting middle income and higher class people which means the crisis doesn’t impact people when it comes to personal comfort. People always want to eat and lto ook good,” she said. “If we talk about the financial crisis in our town then it has hit the lower-income population. Goods have become more expensive, public transport as well, but salaries have not increased, unfortunately.”

ENDS

(News report from Issue No. 306, published on Nov. 25 2016)