Turlov-Controlled Sary-Arka Airport Slashes Loss 72,700-Fold, Yet Liabilities Still Exceed Assets

Sary-Arka's First-Half Loss Collapses to Nearly Zero

Sary-Arka Airport, controlled by Kazakhstan businessman Timur Turlov through Turlov Private Holding, reported a near-zero net loss of just KZT 5,000 for the first half of 2026, according to financial statements published on the Kazakhstan Stock Exchange. A year earlier, the comparable loss was KZT 363.6 million. The 72,700-fold reduction was driven mainly by foreign-exchange income of KZT 501.9 million, which rose 14.7 times; financial income also increased almost sevenfold to KZT 8.2 million.

Revenue grew 30.2% to KZT 6.13 billion, with the biggest increase coming from aviation fuel sales and refuelling services, alongside airport service income. Those gains were largely absorbed by costs: cost of sales rose 28.3% to KZT 5.85 billion, including a 38% jump in fuel expenses to KZT 3.79 billion.

The balance sheet tightened sharply in the same period. Cash and equivalents fell 52.1% to KZT 498 million, inventories dropped 83.8% to KZT 203.5 million, and loans issued by the company shrank 95.3% to KZT 8 million. At the same time, trade and other receivables rose 91% to KZT 860.9 million, advances and other assets doubled to KZT 786.8 million, and tax prepayments excluding income tax climbed 80.3% to KZT 1.3 billion.

Total liabilities increased 2.1% to KZT 9.91 billion. Total borrowings grew 9.1% to KZT 8.37 billion. Equity remained negative at minus KZT 943.3 million, down 78.5% from the end of 2025, because the company's obligations still exceed its assets. The airport is owned through Sky Service LLP, in which Turlov Private Holding holds 60%, Yerlan Ospanov 35% and Aidan Akanov 5%.

Currency Gains Mask the Airport's Underlying Strain

The FX Gain, Not the Runway, Produced the Profit Improvement

The headline loss reduction is technically accurate, but it is not evidence that the airport's core operations have turned profitable. The KZT 501.9 million exchange-rate gain exceeds the entire improvement from the prior loss by about KZT 138 million. Backing out this non-operating item leaves a materially weaker operating picture, especially because fuel costs rose sharply. The report treats the FX result as income, but it does not disclose whether it came from revaluation of foreign-currency loans or other items, so it should not be read as recurring earnings.

Working Capital Is Being Absorbed by Receivables and Tax Prepayments

Although revenue is expanding, liquidity contracted. Cash halved to KZT 498 million, while trade receivables rose 91% and advances doubled. Tax prepayments excluding income tax reached KZT 1.3 billion. These items suggest that a large portion of the higher activity is tied up in amounts not yet collected or recoverable, leaving the company more dependent on external financing to fund day-to-day operations.

Turlov Private Holding Is Acting as Financial Backstop

The controlling shareholder's role extends beyond ownership. In April, Turlov Private Holding advanced a KZT 1.42 billion loan specifically to buy aviation fuel and replenish working capital. Overall, the airport attracted KZT 998 million in financing during the half. That support is essential because the group's equity is negative and total borrowings reached KZT 8.37 billion; without continued shareholder or lender accommodation, the balance sheet indicates the company cannot meet its obligations from its own asset base.

Negative Equity Still Defines the Credit Profile

The airport's uncovered loss was nearly unchanged at KZT 1.84 billion, and equity deteriorated to minus KZT 943.3 million. Even with significantly higher revenue and a near-zero net loss, the business remains balance-sheet insolvent on an equity basis. The practical question for counterparties is not whether the loss narrowed, but whether the company can refinance or convert enough debt to restore positive capital.

What the H1 Report Means for Sary-Arka's Backers and Creditors

For investors, lenders and counterparties watching Sary-Arka, the H1 2026 statement points to specific monitoring items rather than a broad recovery thesis:

• Credit exposure: total borrowings rose 9.1% to KZT 8.37bn while cash fell to KZT 498m and equity was minus KZT 943.3m. A creditor should measure exposure against that negative capital base, not against the KZT 5,000 loss figure.
• Working-capital recovery: trade receivables rose 91% to KZT 860.9m, advances doubled to KZT 786.8m, and tax prepayments reached KZT 1.3bn. For management, converting these items to cash would reduce reliance on the controlling shareholder's KZT 1.42bn April loan.
• Fuel counterparties: fuel expenses rose 38% to KZT 3.79bn and were the main cost driver; aviation fuel and refuelling were also the main revenue driver. Suppliers and buyers should assess whether the airport can sustain fuel margins if exchange-rate gains do not repeat.