Annual Meeting of Shareholders of OAO Nizhnekamskneftekhim was held on April 15, 2010 on the results of the Company’s operation in 2009. President of the Republic of Tatarstan Rustam Minnikhanov participated in the meeting.
The report on the results of financial and economic activities in 2009 was presented by Vladimir Busygin, general director of OAO Nizhnekamskneftekhim. Previous year for the Company was the period of getting over the consequences of the world economic crisis. Thanks to implementation of the program of antirecession measures the revival and recovery began to show in the Company in the second quarter of 2009 and a pre-depression production level was reached in the third and fourth quarters. The commercial production output exceeded the sum of 57 billion rubles in the reported year and the Company fulfilled its obligations on the scopes of product deliveries to its partners. The product sales proceeds reached 60.3 billion rubles and shipment of products for export amounted to 31 billion rubles. Capitalization of the Company increased by 2.4 times and reached 23.3 billion rubles.
Polyethylene production facility was put in operation in February, 2009, at capacity of 230,000 tons a year, which made it possible to bring the total plastics production to 600,000 tons a year. This was a significant event because commissioning of this plant meant successful completion of the program of transition from production of monomers to polymers. Production of plastics and new rubber grades promotes development of private business in Nizhnekamsk industrial area. Presently the most demonstrative example is the establishment of the Industrial Park in Kamskiye Polyany on the basis of Public Private Partnership and under the auspices of OAO Nizhnekamskneftekhim.
Another important indicator of productivity of the Company’s operation is accomplishment of the program for revamping of the ethylene plant where two new cracking heaters were installed. This enabled production of more than 560,000 tons of ethylene in 2009 that is the highest ever output in the history of the Company.
The Company makes payments to the budgets of all levels in due time and in full measure. In spite of difficulties of 2009 the payments to the budget and to extrabudgetary funds came to nearly 3 billion rubles net of VAT refund on export. Alongside with that 634 million rubles was transferred to the budget which is by 214 million rubles higher compared to 2008.
As of January 1, 2010 OAO Nizhnekamskneftekhim employed 17,343 people. Graduates of technical schools, colleges and universities are normally employed by the Company: 280 newcomers were hired in 2009. The average salary in the Company by the end of 2009 was 22,000 rubles and it was paid without delay.
Concentrating its major attention on the production activities the Company also takes great care of the environmental safety. OAO Nizhnekamskneftekhim was the first company in the Republic of Tatarstan that was certified under the international standard ISO 14001:2004 ”Environmental management system”. 98 ecological activities were performed during 2007 - 2009 as part of the long-term ecological program and 1.2 billion rubles was spent.
The annual report and the annual financial statements were approved including the profit and loss statement and distribution of OAO Nizhnekamskneftekhim based on financial results of 2009.
Dividends will be paid for 2009 to the shareholders of the Company at the rate of 7% of par value of ordinary and preference shares, that is 128.11 million rubles. The period of dividends payout was approved, that is 12 months from the date the decision on payment has been taken by the annual shareholders meeting.
The shareholders elected the members of the Board of Directors of OAO Nizhnekamskneftekhim:
Rinat K. Sabirov – assistant to the Prime Minister of the Tatarstan Republic for oil-gas-chemical complex issues (government representative);
Albert K.Shigabutdinov – general director of TAIF PSC;
Vladimir M. Busygin – general director of OAO Nizhnekamskneftekhim;
Radik R. Gaizatullin – acting finance minister of the Republic of Tatarstan;
Evgueni A. Grishin – deputy director of counselor office of the Republic of Tatarstan;
Nahil U. Maganov - first deputy general director for oil & oil product sales & processing-head of oil & oil product sales department, Tatneft JSC;
Zhelko Milich – chief executive officer of IPCO – TRADING S.A.;
Vladimir V. Presnyakov - deputy general director for oil-refining & petrochemistry, TAIF PSC;
Alexander L. Rappoport – managing partner of the lawyer’s office “Rappoport & partners”;
Guzelia M. Safina – deputy general director for economics and finance, TAIF PSC;
Ilshat Sh. Fardiyev – general director of Tatenergo JSC.
The audit commission was also elected at the annual meeting of shareholders of OAO Nizhnekamskneftekhim:
Almaz I. Galeev – head of department for economic analysis of the Ministry of Finance of the Republic of Tatarstan (government representative);
Olga V. Ignatovskaya – chief accountant of TAIF PSC;
Alsu K. Ismagilova – manager of supervision and auditing service of finance-and-economy department, TAIF PSC;
Igor V. Larionov – deputy general director, manager of corporate property and investment department, OAO Nizhnekamskneftekhim;
Rushan R. Shamgunov – head of petrochemical and oil-refining department, TAIF PSC.
ZAO PricewaterhouseCoopers Audit was approved as the auditor of the Company for 2010.
Amendments to the Articles and the internal documents of the Company were approved at the shareholders meeting as a result of the changes of the legislation in force.
As usual, after the annual shareholders meeting of OAO Nizhnekamskneftekhim the first meeting of the new Board of Directors was held. The new Board of Directors supported the motion of the RT President R. Minnikhanov to elect Albert Shigabutdinov, general director of TAIF PSC, as the chairman of the Board, and the authority of Vladimir Busygin was confirmed as the general director of OAO Nizhnekamskneftekhim.