Zhaikmunai swings to H1 profit, eyes new gas sales-UPDATE 1

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Wednesday September 08, 2010 12:33:06 AM GMT

* H1 net income $19.6 million vs yr-ago loss

* Oil prices boost revenue

* To launch gas treatment facility this month

(Adds details, quote) ALMATY, Sept 6 (Reuters) - Kazakh oil and gas company Zhaikmunai swung to a first-half net profit thanks to higher crude prices and plans to launch a gas treatment facility this month that will boost sales, the company said on Monday.

Zhaikmunai said net income totalled $19.6 million in the first six months of 2010, reversing a year-ago loss of $20.1 million. Oil production was practically unchanged and the profit reflects a 51 percent rise in the average oil price, it said.

London-listed Zhaikmunai plans by the end of this year to start selling gas condensate, liquefied petroleum gas (LPG) and dry sales gas after completing construction of a new gas treatment facility by the end of September.

"In the coming weeks we will reach the completion of the gas treatment facility and Zhaikmunai will enter into a new growth phase," Chief Executive Kai-Uwe Kessel said in a statement.

The company said earnings before interest, taxation, depreciation and amortisation (EBITDA) rose 33.1 percent year-on-year to $43.4 million in the first half of 2010, while revenue from oil sales rose 67.1 percent to $74.7 million. (Writing by Robin Paxton; Editing by Erica Billingham)

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