Kazatomprom 2025 Financial Results: Net Profit Down 29%

Kazatomprom remained the fourth-largest portfolio company of the Samruk-Kazyna National Welfare Fund: as of end-2025, its assets increased by 4% to 4.0 trillion tenge. The growth was driven by long-term assets, which rose 12% to 2.4 trillion tenge, mainly due to production preparation costs (+26% YoY to 368 billion) and investments in associates (+27% YoY to 276 billion). Production preparation includes drilling wells, laying pipelines, constructing sorption plants, and building power grids for mining sites. This was reported by Qazaqyia.kz citing Kursiv Media.

The increase in investments in associates is primarily related to profit distribution of the joint venture KATKO with French Orano (Kazatomprom holds 49%): the venture earned 113 billion in profit but distributed only 41% as dividends, capitalizing the rest.

Unlike most industrial companies, Kazatomprom's main long-term asset is not property, plant and equipment (which grew 20% to 272 billion), but subsoil use rights (–4% YoY to 1.1 trillion). This represents the monetary valuation of future benefits from uranium extraction under contracts. The decrease is due to planned amortization.

Current assets fell 3% to 1.6 trillion. Accounts receivable halved (–50% YoY to 340 billion), inventories grew 7% to 415 billion, and cash rose 18% to 347 billion. The reduction in receivables came from collecting funds from Kazakhstani counterparties during 2025.

Lower receivables allowed the company to invest more: financial assets surged from 20 billion to 133 billion. Kazatomprom invested in short-term US Treasuries and National Bank of Kazakhstan notes. It also invested in corporate bonds of the European Bank for Reconstruction and Development (EBRD; 10 billion), Citigroup (8 billion), and bonds of the Ministry of Finance of Kazakhstan and the Asian Development Bank (5 billion each).

VAT receivable on the balance sheet rose by a quarter to 274 billion. Overpayment of corporate income tax increased from 10 billion to 49 billion. The atomic company remains one of the budget's main interest-free creditors.

Kazatomprom fully financed its development from equity, which grew 8% to 3.2 trillion due to a 241 billion increase in retained earnings.

Total liabilities fell 5% to 786 billion. Kazatomprom has the best debt-to-equity ratio among large portfolio companies at 0.2. Its capex level (3-5% of revenue) does not encourage active debt financing, especially long-term.

However, short-term cash needs persist. Current liabilities rose 8% to 454 billion, driven by current borrowings which more than tripled to 156 billion. The company took short-term loans from the EBRD and Citi.

With trade payables down 32% to 191 billion, the current ratio stands at 3.5 – one of the best in the fund group.

Long-term liabilities fell 18% to 331 billion due to a twofold decrease in long-term loans and lower deferred tax liabilities and provisions.

Revenue fell 1% to 1.8 trillion tenge, of which 1.6 trillion came from uranium sales. Long-term uranium prices rose 9% in 2025 after a 20% increase in 2024. However, Kazatomprom sells under long-term contracts linked to spot prices, which fell 14%. Consequently, the average selling price dropped 6%, while sales volume rose 7% and production increased 10% proportional to the company's ownership share. Revenue was also negatively affected by the absence of contracts for TVEL fuel assembly production with the Chinese joint venture Ulba-TVS. In Q1 2026, revenue decline continued.

Geographically, 2025 saw China strengthen its position as the main buyer, accounting for 44% of sales, with shipments up 20% YoY. Shipments to the US rose 45% and to Canada 10%. Most revenue is in foreign currency, while costs are in tenge.

Cost management is a standout feature: production cost rose only 1% to 941 billion, with savings on raw materials (–5% to 495 billion) offsetting higher taxes (+51%) and labor costs (+14%).

Investment in securities doubled financial income to 63 billion, while financial costs remained unchanged at 19 billion. The company paid 189 billion in income tax, more than KTZ and QazaqGaz (second and third in the fund's top 10) combined.

Net profit fell 29% to 807 billion, ranking second in absolute terms among fund companies. Despite the decline, profitability metrics are the strongest in the group: ROA 20%, ROE 25%, ROS 45%.

Operating cash flow hit a record 810 billion, with investment outflows of 259 billion. After net cash outflows from financing activities (488 billion), net cash flow for the year increased.

This was reported by Qazaqyia.kz citing Kursiv Media.