Kazakh oil firm Exillon debuts on Warsaw Stock Exchange

London listed Kazakh company Exillon Energy debuted on the Warsaw Stock Exchange on Monday Oct. 29, 2012.

“Shareholders are considering selling the company if they get a good price,” Mark Martin Exillon Energy CEO told Polish business daily Puls Biznesu. “We expect the company to grow twofold in the medium term, which may drum up interest from investors.”

The Warsaw launch is intended to diversify investment, not to raise cash, the company emphasized at the Monday press conference. Exillon did not issue any shares in the WSE debut. Company bosses stated that this was not necessary as it has cash reserves and profits coming in from the active West Siberian and (north-central Russian) Komi Republic oil fields.

“We do not not plan to pay dividends to shareholders, as we believe selling the company to a single investor in the medium term will be much better for all our shareholders,” the company CEO commented.

Exillon Energy is controlled by Kazakh millionaire Maksat Arip. Following the company’s debut on the London Stock Exchange in 2009, it was fined GBP 292,000 by the British Financial Services Authority (FSA) for failing to disclose and identify transfers worth GBP 930,000 made to Arip for both private and business expenses.

The company stated that the payments were a continuation of an informal agreement with Arip, where his private payments were offset in unpaid salary. In a settlement Exillon agreed to categorize the payments as loans to a related party. Arip agreed to repay the loans with interest.

Exillon currency produces 14,000 oil barrels per day. Wood & Company, Exillon’s financial advisers for the Warsaw debut, predicted a profit of USD 32.7 mln on revenues of USD 350.5 mln for 2012. Profit is expected to increase to USD 43.3 mln in 2013 on revenues of USD 497.3 mln.