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Today the Company’s conference hall was the venue of the annual General Shareholders Meeting, during which the Company’s performance in the year 2018 was summarized. The First Deputy Prime-Minister Rustam Nigmatullin took part in the meeting.
Director General Azat Bikmurzin delivered a speech, summarizing the Company’s performance in 2018. The Company continued its sustainable development, improving its business performance for the benefit of the shareholders and the employees.
Sales revenue totaled 189 billion rubles, an increase by 16% year on year. Rubber sales stood at 716 thousand tons, which is by 14 tons more compared to 2017. Plastics turnover exceeded 717 tons, an increase by 19 tons. The output of many products was unprecedented: 732 thousand tons of plastics, 221 thousand tons of butyl rubber, 223 thousand tons of benzene, 307 thousand tons of propylene, 201 thousand tons of isoprene produced from isobutene, and 107 thousand tons of isoprene produced from isopentane. Index of actual volume constituted 103.2%.
In 2018, the Company was faced with the situation where prices for raw hydrocarbons were higher with lower prices for natural rubber, whose price defines the price for SKI. For example, the price for Brent crude oil in 2018 increased by 14% compared to the beginning of the year, while butane prices increased by 29%, with 31% of increase of propane-butane price.
SKI prices are formed based upon natural rubber prices, which tend to go down. Thus, quoted prices for natural rubber had dropped by 12% by September, 2018, while the prices for basic feedstock – methanol and isobutene- used to produce SKI, grew up by 16% and 57% respectively. Economics of isoprene rubber production in 2018 was not favorable, but despite this fact, the Company fulfilled all of its contractual obligations.
In 2018, the construction of the new isobutene dehydration unit with an annual capacity of 160 thousand tons was completed at IM plant. Two new pyrolysis heaters of SRT-VI type were put into operation at the Ethylene plant. The construction of benzene extraction unit also saw the completion.
In the reporting year, the Company mastered the production of three new grades of medium-density polyethylene, two new grades of polystyrene used for packaging applications, one grade of bimodal polypropylene and one new grade of polyether.
In April 2018 the Company and Linde AG started to engineer and develop project documentation for the new 600 kta ethylene complex. The first orders for long-lead equipment were placed.
To provide the new ethylene complex with electrical and heat energy and to increase the overall energy efficiency of the Company’s facilities, the project for construction of CCGT power plant with a capacity of 495 megawatt is being implemented. All fund-raising issues related to these projects have been successfully settled. In 2018 the Company signed EUR 1 bln. Hermes Covered Facility agreement with German banks.
The Company puts a great emphasis on the environmental protection. 61 environmental activities were implemented in 2018, with total costs constituting 1.5 bln. rubles. The implemented measures allowed to reduce the discharge of waste waters by 4.8%, atmospheric emissions - by 2.2% and nonutilizable wastes – by 25%.
The second stage of reconstruction of the biological treatment plant is near completion. The commissioning of the mechanical treatment unit is underway. The year 2019 will see the completion of the project to construct a 15 km long off-site collector for disposal of storm and waste water.
2018 annual report and annual accounting reports were approved at the General Shareholders Meeting.
The Annual Shareholders Meeting approved the distribution of the Company’s profit following the 2018 year results. 36.4 bln. rubles will be paid out in the form of dividends.
The Meeting adopted a resolution on remuneration and compensation to be paid to the Board members, including the Board Committees and Revisory Commission.
PricewaterhouseCoopers Audit was approved to be the Company’s auditor in 2019.
Nizhnekamskneftekhim Charter was amended and supplemented during the Meeting, and the new revision of this document was approved.
The General shareholders Meeting adopted a resolution to approve a major transaction to place exchange bonds under 001P Series Exchange Bonds Program.
According to the tradition, the first meeting of the new Board took place immediately after the General Shareholders Meeting. The Board members elected Ruslan Shigabutdinov the Chariman, and confirmed the authority of Director General Azat Bikmurzin.
PJSC Nizhnekamskneftekhim is one of the largest petrochemical producers in Eastern Europe. It occupies leading positions among domestic manufacturers of synthetic rubbers, plastics and ethylene. Nizhnekamskneftekhim is a part of TAIF Group of Companies. The company was founded in 1967. Its principal facilities are located in Nizhnekamsk, the Republic of Tatarstan. The company’s portfolio includes more than 120 products, which are exported to 50 countries of Europe, America and Southeast Asia. Exports constitute about 50% of total output volume.
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