Shareholders of OAO Nizhnekamskneftekhim Summarized the Results of 2010 activity
On April 15, 2011, the General Meeting of Shareholders of OAO Nizhnekamskneftekhim was held to summarize the results of the Company’s activity in 2010. Mr. R. Minnikhanov, the President of the Republic of Tatarstan, was present at the Meeting.
Vladimir Busygin, General Director, OAO Nizhnekamskneftekhim, presented his report on the Company’s financial and economic activity. The results of 2010 activity became a logical outcome of the Company’s goal-oriented activity focused on implementation of the strategic development vector which was adopted ten years ago. Sales volume reached the level of 94.4 bln. Rubles, being 1.5 times higher as compared to the previous year. Profit on sales exceeded 12 bln. Rubles, that is 4 times more then the level of 2009. It is the first time when net income overpassed 7 bln. Rubles. The Company capitalization increased 1.7 times and reached 39.3 bln. Rubles.
OAO Nizhnekamskneftekhim is the first-rate exporter of petrochemical products in the Russian Federation. In 2010, the Company supplied its products to 59 countries globally. 50% of the produce was shipped for export. In terms of the total export sales - 47 bln. rubles – the Company outperformed the pre-crisis level.
The Company is, as before, occupying the leading position among domestic producers of synthetic rubbers. Its share within the Russia-wide volume of rubber production makes one half, and by certain types of products the Company takes leading and dominating positions. The aggregate volume of synthetic rubber output in 2010 is at maximum in all the Company’s history: more than 500 thou. tons of seven rubber types.
The Company is successful in accomplishing the task on extension of the level of hydrocarbon processing in order to manufacture higher value added products, such as plastics. In 2010, 544 thou. tons of all plastic types were produced, which is the highest figure not only for the last 10 years of development, but for the whole history of OAO Nizhnekamskneftekhim. Within the near-term outlook, plastics output will grow due to commissioning the ABS Plant.
Nizhnekamsk Industrial Zone was set up on the basis of OAO Nizhnekamskneftekhim for the purpose of mutually-beneficial industrial cooperation, within the framework of contribution to small business development, and in order to establish the area of steady consumption of polymer produce. Currently, the companies being the members of the said Zone, successfully operate in Nizhnekamsk District, Mendeleevsk and Yelabuga. They manufacture a wide range of polymer and rubber molded articles, car components, extrusion-grade polystyrene, as well as different polymer films and threads. In the year under report, plastics from Nizhnekamsk are processed in the “Kamskiye Polyany” Industrial Estate at the production facilities manufacturing polypropylene multifilament yarn and stretch films. In 2010, production facilities of the Nizhnekamsk Industrial Zone processed 10% of plastics supplied from Nizhnekamsk and manufactured goods for 5 bln. Rubles.
Commissioning of new production facilities in the Nizhnekamsk Industrial Zone allowed to create more than 500 jobs, and the average salary has made 20-25 thousand Rubles.
One more important parameter of operating efficiency of the Company is modernization of the Ethylene Plant. Acetylene hydrogenation unit and commercial ethylene purification unit are successfully put on stream in the Plant. It has allowed to produce the record 593 thousand tons of ethylene in 2010 and 13 million tons of ethylene since the Plant had been placed in service.
OAO Nizhnekamskneftekhim specialists continue to implement measures in the field of energy saving. For the last four years, 457 business ideas were introduced within the framework of the Energy Saving Program of the Company with overall economic benefit – 2.7 billion Rubles.
Currently, OAO Nizhnekamskneftekhim is busy with implementation of a new Energy Saving Program, for the period till the year 2020. Within the limits of this program, 231 provisions are planned to be implemented that will allow to save 360 million KW-hours of electric energy, 1.9 million GigaCalories of thermal energy, and 47 thousand tons of equivalent fuel.
Focusing main efforts on production activity, the Company, at the same time, gives enhanced attention to environmental control. Since 2004 the environmental control system functions in full conformity with ISO 14001 and in compliance with the prospective Ecological Program till the year 2015 with introduction of 115 provisions (17 of them - in 2010). Total expenses under the given program make 1.6 billion Rubles.
For the last years, the volume of atmospheric emissions of harmful substances lowered from 57 down to 28 thousand tons, or more than twice; specific effluent disposals are reduced by 25 %, specific formation of non-recycled waste products - by 24 %.
The Company transfers, in due time and in full, money to the budgets of all levels. In the course of the year, the company transferred 3.9 billion Rubles of taxes and tax collections into the consolidated budget of the Republic of Tatarstan, including 607 million Rubles to the budget of Nizhnekamsk.
Average number of employed at the Company in 2010 has made 17100 persons. Replacement of personnel occurs basically due to graduates of basic educational institutions: in 2010 about 386 young specialists became petrochemists. In total, 1144 persons of those joined the Company in 2010 are below 30 years of age. Middle age of petrochemists is 39 years.
The average monthly wages increased year on year by 23 % and now is 27 thousand Rubles.
Shareholder's meeting approved the annual report, annual accounts, including reports on profits and losses, distribution of the profit of the OAO Nizhnekamskneftekhim by results of preceding year base 2010.
At year-end of financial and economic activity of the Company for 2010 30 percent from net profit, that makes 2,152 billion Rubles, are allocated for payment of dividends, that makes 1.176 Rubles for each ordinary and privileged share.
At the annual meeting of shareholders of ÎŔÎ Nizhnekamskneftekhim the Boad of Directors has been elected consisting of:
Rinat K. Sabirov – assistant to the President of the Republic of Tatarstan (government agent)
Albert K. Shigabutdinov – General Director of ÎŔÎ ŇŔIF
Vladimir M. Busygin – General Director of ÎŔÎ Nizhnekamskneftekhim
Sergei V. Alekseev – First Deputy of the General Director, ÎŔÎ Svyazinvestneftekhim
Radic R. Gaizatullin – Finance Minister of the Republic of Tatarstan
Nahil U. Maganov – First Deputy of the General Director for Oil & Oil Product Sales – Head of Oil & Oil Product Sales Division, ÎŔÎ Tatneft’
Zeljko Milic – Managing Director of IPCO - TRADING S.A.
Vladimir V. Presnyakov – Deputy of the General Director for Oil Refining & Petrochemistry, ÎŔÎ ŇŔIF
Alexander L. Rappoport – Managing partner of the Law Office “Rappoport & Partners”
Guzeliya M. Safina – Deputy of the General Director for Economy & Finances, ÎŔÎ ŇŔIF;
Ilshat Sh. Fardiev – Deputy of the Prime Minister of the Republic of Tatarstan – Minister of Energy of the Republic of Tatarstan.
Audit Commission has been elected consisting of:
Fanis G. Gabdulkhakov – Head of Economic Analysis Department of the Ministry of Finance of the Republic of Tatarstan (government agent);
Rustam M. Akhmetov – Deputy of the General Director for Economy, ÎŔÎ Nizhnekamskneftekhim;
Olga V. Ignatovskaya – Chief Accountant ÎŔÎ ŇŔIF
Alsu K. Ismagilova –Supervision & Auditing Service Manager, Finance-and-Economy Division, ÎŔÎ ŇŔIF
Rushan R. Shamgunov – Head of the Oil Refining & Petrochemistry Division, ÎŔÎ ŇŔIF
Shareholders have approved ZŔÎ “PriceWaterHouseCoupersAudit” as an Auditer for the Company in 2011.
At the shareholders’ meeting amendments and supplements to the Charter and the internal documents of the Company relating to changes of the current legislation were approved.
After the annual general meeting of shareholders of the OAO Nizhnekamskneftekhim was over, a traditional meeting of the Board of Directors took place in its new composition. The new Board of Directors has supported the suggestion of Mr. R.Minnikhanov, the President of the Republic of Tatarstan, and reelected the General Director of OAO ŇŔIF Mr. Shigabutdinov Albert Kashafovich - the Chairman of the Board of Directors and has confirmed authorities of Mr. Busygin Vladimir Mihajlovich, the General Director of OAO Nizhnekamskneftekhim.