The coal mining company Karazhira, co-owned by Eduard Ogay (ranked 13th by Kazakhstan’s Forbes with a capital of $800 million) and Vladimir Dzhumanbayev (ranked 25th with $365 million), reported a net profit of 3.1 billion tenge in 2023, down from 9.3 billion tenge in 2022. According to the audited financial statements, Karazhira’s total assetsincreased to 67.8 billion tenge by the end of 2023, up from 64.1 billion tenge the previous year, and its capital rose to 18 billion tenge from 14.6 billion tenge in 2022. The balance sheet value of a single share climbed to 16,243 tenge from 13,888 tenge at the end of 2022.
Revenue from product sales amounted to 58.4 billion tenge in 2023, compared to 57 billion tenge in 2022. However, the cost of sales increased to 42.3 billion tenge from 35.1 billion tenge in 2022, resulting in a net profit decrease to 3.1 billion tenge for 2023, down from 9.3 billion tenge in 2022. Karazhira earned 58.4 billion tenge from coal sales in 2023 (compared to 57 billion tenge in 2022 and 48.3 billion tenge in 2021), with the majority sold within Kazakhstan (45.1 billion tenge). The company also supplied coal to Russia, Kyrgyzstan, Switzerland, Moldova, and Uzbekistan.
The auditor noted the company’s dependence on a few key buyers, which accounted for 66% of group revenue in 2023, up from 64% in 2022, highlighting potential risks if these buyers are lost. The credit risk for loans issued to Kyrgyzstan was evaluated at 100%, leading to a reserve being established. Additionally, expenses for the write-off of burnt coal increased to 790.1 million tenge in 2023 from 528.4 million tenge in 2022.
Key executive compensation dropped to 73.4 million tenge in 2023 from 119.1 million tenge in 2022, and the company reduced its workforce to 845 from 918 in 2022. Karazhira’s assets, including buildings and equipment valued at 5.5 billion tenge, are used as collateral for group loans. The company also extended the repayment of a $20 million loan until December 2024. The main shareholders as of April 1 are Vladislav Ogay, Elina Ogay, Eduard Ogay, Vladimir Dzhumanbayev, and Yerlan Nigmatulin. Karazhira paid 9.9 billion tenge in dividends in 2022 but none in 2023.
In October 2021, Karazhira issued 20 million bonds at 1,000 tenge each with an annual interest rate of 14%, paying out 2.8 billion tenge in interest in both 2023 and 2022. As of the end of 2023, the company held loans from Altyn Bank and Bank CenterCredit, with various interest rates and maturities in 2024, totaling several billion tenge.
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