KMG EP: Holds Board Meeting and Implements a Unified System of Wages for Employees
Yesterday the Board of Directors of JSC KazMunaiGas Exploration Production, KMG EP, met to approve the meeting agenda and set a date for the Shareholders Annual General Meeting for 13 May 2014.
The AGM agenda: approve annual consolidated financial statements and the Company’s 2013 Annual Report, agree dividend regarding 2013 earnings per ordinary and preferred shares of KMG EP, evaluate the Board of Director’s performance in 2013 and other questions.
The Board of Directors has recommended a dividend for the 2013 earnings per ordinary and preferred share of KMG EP of 1,976 Tenge which is equivalent to about 135 billion Tenge1 (approximately US$730 million2). This will be voted upon at the AGM. If approved, the payment of the 2013 annual dividend will be made starting 24 June 2014 to shareholders of record as of 23 May 2014.
Independent directors suggested payment of a substantial special dividend. This proposal was deferred by the Board of Directors for later consideration.
The Board of Directors adopted budget adjustment taking into account the increase in export and domestic tariffs of JSC “KazTransOil” from January 1, 2014.
The Board of Directors also agreed to implement a Unified System of Wages (USoW) of employees working in the upstream oil and gas division from 1 April 2014 onwards. This ruling leads to employee benefits increase by 21 billion Tenge (US$113 million2) in 2014 budget including an increase of 10% of wages in connection with the devaluation of the Tenge in February 2014.
USoW will be implemented throughout the NC KazMunaiGas Group. The USoW will provide unified tariff rates for workers within their monthly payroll. This is a new payroll system which considers the difference in complexity of work within the same occupation for all employees.
