PSC “TAIF” sums up the results for 2009
April 23, 2010.
Today the Annual Meeting of PSC “TAIF” shareholders was held where the results of the company’s activity in 2009 were summed up. The Meeting was held with participation of the President of Tatarstan Republic Rustam N. Minnikhanov.
A report on the results of the activity in 2009 was delivered by PSC “TAIF” General Director Mr. Albert Shigabutdinov. It was his 15th report to the shareholders. This is the 20th year since foundation of VTNPO “Kazan” and the 15th year since establishment of PSC “TAIF” on the basis of VTNPO «Kazan». In his report, the General Director noted that during this period the revenue of the companies comprising TAIF GROUP amounted to over RUB 1,046 billion, over RUB 122 billion of taxes and duties were paid to all-level budgets, the companies’ aggregate assets as of the end of 2009 amounted to RUB 242 billion, more than RUB 215 billion were allocated to the investments in modern innovation technologies, among that the Program of the Development of Oil and Gas Refining, Petrochemical and Chemical Sectors including re-equipment of all infrastructural facilities – over RUB 180 billion. This is an unprecedented occasion in the petrochemical sphere in the post-Soviet Russia. The colossal investments made helped the companies of TAIF GROUP to mitigate the impact of the global financial crisis to the maximum extent and achieve significant results with full adherence to all its tax and social obligations. The major tasks assigned by the Government of the Republic and the shareholders to TAIF GROUP are accomplished.
TAIF GROUP implemented absolutely new investment projects, especially in the areas of petrochemicals and chemicals and oil and gas refining. Today PSC “TAIF-NK” is one of the best refineries of the Russian Federation. It production capacities allow commodity output production to the amount of RUB 156 billion per year. PSC “TAIF-NK” produces over 2 million tons per year of high-quality raw materials for petrochemicals, up to 3 million tons per year of motor gasoline and diesel fuel that by many characteristics surpass European environmental standard EURO-4, over 600 thousand tons per year of jet fuel for civil and military aviation, and also up to 120 thousand tons per year of road bitumen types according to European technology. At the moment, monomer and polymer production capacities at OJSC “Nizhnekamskneftekhim” and OJSC “Kazanorgsintez” amount to 2.5 million tons and 2.1 million tons per year respectively. The only plants in Russia producing bisphenol A and polycarbonates were built here on the basis of the advanced world technologies.
In the report, the General Director mentioned that despite the effect of the world financial crisis TAIF GROUP allowed no decrease in the production volume in 2009. Aggregate revenue of the companies of TAIF GROUP amounted to almost RUB 257 billion, and the physical index of industrial production amounted to 104%. Over RUB 22.7 billion of taxes and duties were paid to all-level budgets. The companies of TAIF GROUP preserved the jobs at 2008 level even at the plants that turned unprofitable as a result of the crisis. During the reporting year, TAIF GROUP companies invested RUB 12.4 billion in culture and arts, personnel training, as well as to reimbursement of the growth in energy tariffs for population, state-financed organization, and other socially vulnerable entities.
In 2009, an extremely complicated work was completed aimed at the restructuring of the loan portfolio of OJSC “Kazanorgsintez”, as a result of which Sberbank of Russia opened credit lines to the total amount of RUB 35 billion against a full security of TAIF GROUP and the state guarantees of the Government and the Russian Federation to the amount of RUB 17.5 billion. Also we managed to settle the issue of the abolishment of the tolling scheme for refining of raw ethane supplied by OJSC “Gazprom”. Albert Shigabutdinov expressed huge gratitude to the Government of the Russian Federation and the Republic of Tatarstan for assistance in the settlement of these issues.
While evaluating the results of the reporting year and the preliminary results of TAIF GROUP enterprises for the Ist quarter 2010, the General Director stressed that, in the period of the world financial crisis, TAIF managed to keep its position in the market, reduce its impact to the maximum and get into position that allows starting implementation of the plans developed. TAIF GROUP got an opportunity to continue working with even greater power and energy.
Till 2017, implementation of efficient projects is planned in the sphere of petrochemicals at the total value RUB 355 billion with the production capacity producing high-quality output brought to RUB 700 billion or 22 million tons per year.
Also the Annual Report and Annual Accounting Statements including the Income Statement and Profit Appropriation Statement according to the results of 2009 were approved at the Meeting, and a new Board of Directors was elected. At the Meeting of the new Board of Directors, that took place after the Shareholders’ Meeting, Rustem N. Sulteev was elected again as its Chairman in accordance with the proposal of the President of the Tatarstan Republic.