NKNK puts emphasis on rubber production development
The Board of Directors of Nizhnekamskneftekhim has discussed financial and production results that once again prove the stability of the company even during the crisis: the revenue has increased up to 78 billion rubles, output volume has increased almost by 9% on 2015 and the approved plan.
'The results are not bad giving the crisis in the world'
There were six main issues in the agenda of the Board of Directors chaired by the head Vladimir Busygin. Among them – the results of the financial and economic activity, the analysis of the state of debit and credit debts, as well as the investments efficiency in subsidiaries and governed companies.
The Board of Directors started its work from the discussion of the issues on the implementation of previously made decisions and on the adoption of the work plan of the audit committee and the Committee for personnel and rewards. The honoured member of the Board, Director General of TAIF Albert Shigabutdinov, directed the audience's attention on the reward issue.
He proposed turning to the experience of the Soviet Union and to include in the work of the Committee for personnel and rewards the special item on the reward of the workers of NKNK who distinguished with honour at the level of Nizhnekamsk, the Republic of Tatarstan, as well as at the level of the Russian Federation. He believes that 'the results obtained by Nizhnekamskneftekhim, perhaps, even surpass the achievements during the Soviet Union's time, but rewards and distinguished titles are not many'. The members of the Board supported the idea and recorded in the minutes of the meeting.
As for the presented to the Board results of financial and production activities, according to Deputy Director General for economy and finances of the company Valery Starkov, in the first half of the year the company exceeded the plan of production by 8.8%. The production growth in the physical volumes to the period was 2.3%. The production volume growth, and thus of sales, entailed revenue increase.
A week earlier, the company published the quarterly report with the financial results. As expected, despite the crisis in the Russian economy and the difficult situation in macroeconomics, the Nizhnekamsk petrochemical giant has managed to increase revenue by 8%, which in the first six months amounted to 78 billion rubles, in comparison with 73 billion in six months of 2015. In total, for the whole group of companies it amounted to 86.3 billion rubles. These figures were again announced at the Board of Directors meeting.
An increase of nearly 42% — another advantage. This was the result of tax payments to the Treasury of the Republic of Tatarstan. Only in six months the budget of RT received from Nizhnekamskneftekhim nearly 4.5 billion rubles. In comparison with the first half of 2015, as the chief accountant of Nizhnekamskneftekhim PJSC Ilfar Yakhin emphasized, it is more by 1.32 billion rubles.
As the head of TAIF noted, 'the results of Nizhnekamskneftekhim are really record-breaking, but we should not deceive ourselves. We still have not achieved the best results, the record-breaking results in dollars, which we had in 2011-2012 when the dollar was 30 rubles. Although the results are quite good given the crisis situation in the world.'
As for the investment projects being implemented by Nizhnekamskneftekhim today, one of them — the modernized production plant of alpha-olefins — on 20 August, it was officially launched with the participation of RT President Rustam Minnikhanov.
As the chairperson of the Board of Directors Vladimir Busygin noted in an interview after the meeting, 'alpha-olefins is not a simple project, it lasted quite long and finally we've launched the plant. The adjusting and commissioning works took a very short time — about two months. If to compare with the start-up of alpha-olefins in Saudi Arabia, it took 2.5 years. We have already received fraction of butene and hexene, required for the production of polyethylene, which has already been used in its production, and we have got good results.'
Now the scope of work of the petrochemical company is associated with the increase in the production of rubbers. The main forces and financial resources of NKNK are directed for that purpose. The company is going to achieve quantitative and qualitative growth through modernization of isobutylene production: the capacity of the new plant will be 160 thousand tonnes per year. In addition to it there will be launched the production of formaldehyde with a capacity of 100 thousand tonnes of isoprene with a capacity of 133 thousand tonnes per year. The formaldehyde and isobutylene production start-up is planned before the end of this year.
In addition to this project, said Vladimir Busygin, 'the issue of the extraction of additional quantities of benzene at the operating ethylene complex has been considered. The contracts have been signed, and works should be completed before the end of 2017. It will allow Nizhnekamskneftekhim to get, in addition from the raw materials that is used in the ethylene plant, more than 50 thousand tonnes of benzene and not to buy it from a third party.'
Indeed, there is an active work on the largest in the history of the company investment project — the olefin complex with a total capacity of 1.2 million tonnes per year (two stages of 600 thousand tonnes each). By the end of September, the team of the company should receive proposals from the companies on EP-contract.
To increase efficient activity of the subsidiaries
According to the announced data at the meeting, Nizhnekamskneftekhim is a shareholder and a participant of 40 economic entities: 20 subsidiaries companies with share from 50 to 100%; 5 affiliated companies with share from 20 to 50% and 13 other companies with share of no more than 20%; also it is a founder of two companies.
The industrial-commercial companies have received 137 million rubles of net profit. Almost the same amount — 159.5 million rubles – was received by Nizhnekamskneftekhim PJSC as dividends. Besides, about 33 million rubles — from affiliated and other companies.
As it was decided at the meeting, the Board of NKNK needs to develop a detailed program to improve the efficiency of the subsidiaries. The document must be ready by the next meeting, which will take place in late November.