The past year was the most difficult one yet the most successful for TAIF Group.
Today the company’s shareholders summarized the results of the company’s operation in 2011 at the Annual General Meeting of TAIF PSC’s Shareholders. The President of the Republic of Tatarstan Rustam Nurgalievich Minnikhanov took part in the meeting.
A detailed report was presented by the General Director, TAIF PSC, Albert Shigabutdinov. In particular, he stated that the past year was the most difficult yet the most successful one for TAIF Group. Notwithstanding the difficulties, the best operational and financial-and-economic performance ever recorded during the period of TAIF Group’s existence were achieved. Thus, TAIF Group’s aggregate revenue in 2011 amounted to RUB 433.5 billion, EBITDA exceeded RUB 67.3 billion (24% growth y-o-y) and total net profit achieved a record level of RUB 42.5 billion. Aggregate taxes and charges paid by TAIF Group in the reporting year to all-level budgets exceeded RUB 56.5 billion including RUB 14.4 to the consolidated budget of the Republic of Tatarstan.
RUB 8.6 was allocated to charity, social sphere, support of sports, healthcare, environmental protection and culture, about RUB 4 billion – environmental protection measures, and over RUB 5 billion – to labor protection and industrial safety.
RUB 8.6 was allocated to charity, social sphere, support of sports, healthcare, environmental protection and culture, about RUB 4 billion – environmental protection measures, and over RUB 5 billion – to labor protection and industrial safety. TAIF Group’s overall investments in the social sphere of the Republic of Tatarstan including tax payments amounted to over RUB 32 billion.
In general, from 1995 to 2011, over RUB 260 billion was invested in the development of TAIF Group’s companies.
In the reporting year, the major focus was put on implementation of projects in TAIF PSC’s oil, gas and chemical sector, the work was continued on achievement of the designed capacities of newly-built plants and the existing production facilities revamped.
The reporting year was of strategic significance for TAIF-NK PSC, which is a key element of TAIF Group’s oil and gas processing sector and a basis of the petrochemical sector of the Republic of Tatarstan: a final configuration of the planned Heavy Residue Conversion Complex was defined and a Veba Combi Cracking (VCC) process-based technology was selected. Employment of this technology will enable TAIF-NK PSC to ensure at least 95% conversion depth of Tatarstan crude in terms of the yield of light oil products.
TAIF PSC’s General Director reported that Sberbank OJSC’s credit facility up to the amount up to RUB 19 billion for Kazanorgsintez OJSC was prolonged till 2018 and also a new credit facility up to RUB 10 billion was opened. Besides, over RUB 1 billion had been already repaid.
According to Albert Shigabutdinov, the main tasks set for TAIF Group by the government of the Republic and the shareholders in the past year are fulfilled.
TAIF PSC’s General Director reported that based on the results of the Group’s operation for the five months of 2012 revenue amounted to RUB 194 billion (RUB 180 billion - for the five months of 2011), and RUB 28.4 billion of taxes was paid to all budget levels for the five months of 2012 (RUB 21.9 billion – for the five months of 2011).
Also, the Annual Report, annual accounting statements, including the Income Statement, and Profit Appropriation Statement for a financial year 2011 were approved at the meeting.
Olga Ignatovskaya, Chief Accountant of the company presented a report. In particular, it was reported that TAIF PSC’s net profit in 2011 amounted to RUB 7 billion 195 million (growth from the level of 2010 – RUB 1 billion 731 million). The shareholders made a decision to distribute RUB 3 billion 375 million out of TAIF PSC’s net profit to dividend payment.
Further, a new Board of Directors of the holding company – TAIF PSC – was elected. At the meeting of the new Board of Directors held after the shareholder’s meeting Rustem Nurgasimovich Sulteev, First Deputy General Director, TAIF PSC was re-elected as its Chairman following the proposal of the President of the Republic of Tatarstan.
The President of Tatarstan congratulated the company’s shareholders with strong performance of the reporting year and election of a new Board of Directors. Following Rustam Minnikhanov’s speech, today TAIF Group plays a great part in forming of GRP of the Republic. TAIF Group’s aggregate revenue based on 2011 results in the amount of RUB 433.5 billion - this is a significant figure, he said.
Rustam Minnikhanov stressed that TAIF is a Russia-scale company and is one of the major all-level budget tax payers, and its revenue levels are comparable to Tatneft OJSC. We must go ahead in order to execute all the agreements achieved, the President of Tatarstan said.
Once the General Meeting of Shareholders and the Board of Directors’ meeting were over, a brief press-conference was held, in the course of which Rustam Minnikhanov, Albert Shigabutdinov, and Rustam Sulteev answered the reporters’ questions. In particular, they answered the questions about further development of TGK-16, the changes in the Board of Directors of TAIF PSC, and about the delay of IPO – since the company is looking for a more favorable economic situation. Albert Shigabutdinov mentioned, in particular, that the company is completely prepared to IPO, as reported by the media center of the President of the Republic of Tatarstan.