Fuel records of TAIF-NK
Rise in revenue by 5 billion of rubles, net profit increase by 11,4%, 8,4 million tonnes of refined raw material is the result of the work of TAIF-NK PJSC in 2014. The last year is correctly supposed to be very successful for the petroleum refining enterprise of the TAIF Group of Companies. It was the conclusion drawn by a correspondent of Realnoe Vremya who had studied in detail the annual report of the company.
Volumes grow as well as income
Their previous records have been beaten. It is the final result of 2014 for the leading petroleum refining company of Tatarstan. A well-timed modernization of factories of Oil Refining and Gasoline Plants, precise general development strategy of the company allowed TAIF-NK to increase both volumes of raw material refining and financial results one more time. EBITDA indicator grew by 10,6% reaching 15,9bn rubles, compared to 2013.
Having reached all planned figures and increased the production of ecological Euro-5 diesel fuel up to 2,3 million tonnes per year, TAIF-NK consolidated its position of the leading participant on the market of petroleum products in Tatarstan and Russia.
Raw material conversion rate is the direct reflection of the operational and technical efficiency of the company. Due to this indicator, in 2014 TAIF-NK was one of the top ten petroleum-refining companies of Russia. In the Russian Federation, the conversion rate was 72,4% in 2014, while the indicator of TAIF-NK reached 74,5%.
A profitable product
Modernization of technological units of the enterprise had a direct impact on the growth of the commodity output of high ecological quality. Consequently, the demand for products of TAIF-NK is continuously growing. According to the data of the report, products of the company are very popular in the republic, in Russia, including abroad, mainly in EU (the Netherlands, Germany, Finland, etc.) and CIS countries.
If a year ago the volume of exported petroleum products was 4,8m tonnes, in 2014 it reached 5,3 million tonnes. The increase of the production of high-quality petroleum products is an important factor too, where the Euro-5 diesel fuel takes the first place. A high demand of foreign consumers for products of TAIF-NK, which are highly competitive with European analogues, and sometimes surpass their quality, provided a rise in revenue to the company.
The export revenue increased by 9bn rubles, that is to say, by 13,4% and formed almost 60% of the total revenue of the company in comparison with 2013. The high-quality ecological Euro-5 diesel fuel was the most popular exported product (47,7%) followed by mazut and vacuum gas oil.
As for the domestic market, TAIF-NK increased the volumes of oil products realization by 20% and made a revenue of 55,7bn rubles.
As it is stated in the report, straight-run gasoline to the full extent delivered to Nizhnekamskneftekhim, the largest petrochemical giant of the republic, motor fuel, which has being produced according to the ecological Euro-4 standard since 2008, and diesel fuel of Euro-5 standard (since 2012) accounted for a big share in the structure of the revenue on the domestic market. Indubitably, all these products correspond to the Russian and international quality standards.
A rapid progress in retail
The development programme of their chain of petrol stations of TAIF-NK also yields fruits. For one year, 6 new petrol stations of TAIF-NK appeared totaling 38 stations by the end of the year. And the company's own 18 petrol stations situated in the zone of Zakamye made a revenue of 1,3bn rubles.
An important point to remember is that the volume of products sold at the petrol stations of TAIF-NK annually grows: for instance, in 2014, 54,000 tonnes of motor fuel were retailed, whereas last year – 51,000 tonnes. Motor fuels accounted for 83% of the total volume of fuel sold through its own chain of petrol stations. These figures demonstrate the high quality of the automotive fuel of TAIF-NK and growing trust of the customers.
On the financial horizon
The volume of the net worth of the company, which increased by 15% in 2014, is the clear evidence of high sustainability and stability of the enterprise. By the end of 2014, its volume exceeded 44bn rubles, and, generally speaking, assets of the company made 92bn rubles. The company's own funds and short-term liabilities equally served as financial sources of the asset formation.
The excess of its asset coverage, which increased 1,5 times, is the illustration of a high level of capital adequacy for financing the current activity even when a capital-intensive project like the construction of the Heavy Residues Deep Conversion Complex is realized.
Due to the high provision of its own funds, last year TAIF-NK invested over 19bn rubles in the fixed capital realizing a strategy aimed at development and modernization of active factories, implementation of resource and energy conserving, ecologically safe technologies as well as the creation of the absolutely new manufacturing Heavy Residues Deep Conversion Complex.
There is no doubt that the company's net profit equal to 10,7bn rubles is its main result of the operational and financial activity, which surpassed last year's figure – 1,1bn rubles or 11%. Net return on sales made 8,1%.
In the book of records
The main strategic task, which has being followed by TAIF-NK since 2012 is the increase of the petroleum conversion rate. The company is going to reach it by dint of putting into operation the Heavy Residues Deep Conversion Complex, where an unprecedented in Russia and worldwide petroleum refining technology will be implemented.
It is noted in the report that the realization of this project will enable to augment the oil conversion rate at least to 95% that will make this process practically wasteless and completely switch to the manufacture of light petroleum products, which have high ecological characteristics, and stop producing dark petroleum products. As a consequence, production volumes of diesel fuel, kerosene, motor and straight-run gasoline, which is badly needed in the petrochemistry of the republic, will ramp up. And the petrochemical complex of Tatarstan will have a high-quality raw material in the form of liquefied petroleum gas.
Putting the complex into operation in 2016 will create 700 new working places for citizens of Nizhnekamsk. Undoubtedly, the stable work of the new powerful factory will increase GNP and GRP and shoot up the general level of efficiency and innovativeness of the economy of the republic.
The 2014 was the more intense year for the construction of the HRDCC: one of the most difficult stages, delivery and installation of a large-tonnage equipment for implementation of the VVC (Veba Comby Cracking) is behind. The most dramatic event probably took place in September 2014 when the heaviest freight arrived to the building site. It was a 40-meter hydrocracking reactor whose transport from India to Nizhnekamsk became a new world record. No gigantic freights of such a weight (almost 1,400 tonnes) and size had never been ferried across rivers and seas.
More and more
During many years, TAIF-NK remains one of the largest tax payers of the republic and the country. Tax payments of the company increased by 9bn rubles or rather 17% in comparison with the previous year. A huge sum of 62bn rubles was paid to all budget levels in 2014. This amount of money would be enough for 22,300 one-room flats given for social mortgage equal to about 1 million square meters. Over 4 billion rubles (or 6,6%) of the total sum of the company's tax payments were channeled to the Treasury of the republic. Indirect taxes account for 92% of the tax payments: 80% of them belong to customs duties, the other part – to excise duties.
Strategy is a guarantee of success
Founded in the development strategy and directly caused financial records, the industrial achievements of TAIF-NK favoured not only the asset augmentation but also the realization of many corporate programmes, the social one first. As it is mentioned in the annual report, what they have reached is the result of hard work of a united team of like-minded people.
Overall, actively developing key lines of its activity, TAIF-NK proved once again its ability to realize consequently and effectively the development strategy aimed at price increase by virtue of the modernization of factories and development of retail trade of the company. As a result, the company achieved all planned financial and industrial indicators.