Rustam Minnikhanov tells about economic results in 2015: ‘Enemy's efforts worked…’
Headed by the President of Tatarstan Rustam Minnikhanov, the meeting of the board of directors of Tatneftekhiminvest-holding PJSC took place where it was told about the growth of the petrochemistry of the republic while there is a crisis, what new chemical projects might be realized, why the largest companies of the Republic of Tatarstan have minimal intangible assets. A correspondent of Realnoe Vremya visited the meeting.
Despite enemy's efforts
The director general of Tatneftekhininvest-holding Rafinat Yarullin told about the situation of the Russian economy in general and then concretized the state of affairs of the largest enterprise of the republic. Russia had the worst results for 2015 among the economics of the world. GNP reduced by 3,7%, investments in the fixed capital decreased by 5,5%, and inflation made 16%.
'You should have said: enemy's efforts worked,' Rustam Minnikhanov immediately corrected the speaker.
In Russia, only chemical and food industries demonstrated growth. At the same time, as a result of the weak ruble, many companies improved their positions on the domestic market and increased the export. It allowed the export-orientated enterprises to increase their income. It is characteristic of the enterprises of Tatarstan. In 2015, the basic enterprises exported products equal to 424,6bn rubles that guaranteed 46,5% of their total revenue. Tatneft, Kazanorgsintez, KVART and Mendeleevskazot increased their export.
The production volumes in the petrochemical complex of the republic increased by 2,5%, compared to 2014. The record growth rates were demonstrated by petroleum extraction – by 1,9%. The production of rubber and plastic goods reduced. It is important that the results in fuel sectors exceeded the all-Russian indicators. Nizhnekamsk All Steer Tires Plant and Mendeleevskazot had the best results of production growth. Nizhnekamskneftekhim, Tatneft, Nefis Cosmetics had a 3% growth.
According to preliminary estimates, all basic enterprises of the complex finished the year with income, which exceeded the level of 2014. But this growth was provided by fluctuations of the ruble. High income in this situation is just a short-term effect.
The payments to the budget of the republic increased by a third and made 47,4bn rubles. The portion of Nizhnekamskneftekhim and Kazanorgsintez in the structure of the payments augmented by 32%. The portion of Tatneft and TAIF-NK reduced due to the tax manoeuvre that came into effect last year.
In December, Tatneft's petroleum extraction reached 2,386m tonnes. For a year, the company extracted 26,927m tonnes, the increase made 2,7%. Petroleum Refining Complex of Taneco produced 8,895m tonnes of oil products, and the growth is 2,1%. The production of volumes of sales of diesel fuel, natural gasoline, heating oil ramped up. TAIF-NK preserved its production on the level of 2014.
Nizhnekamskneftekhim increased its production volumes by 3,1%. Its income is equal to 150,6bn rubles and the profit margin is 18%. Kazanorgsintez reduced polyethylene production by 1,5% due to the reduction of ethylene delivery in the third and fourth quarters. Nevertheless, the revenue of the enterprise augmented by 26%, sales profit is 2,1 time higher. Nefis Cosmetics' sales profit totaled 13bn rubles by means of the expansion of supply to the regions of Russia. Mendeleevskazot finally left the zone of losses.
Tire Complex of Tatneft managed to maintain production volumes on the level of 2014, that is to say, 12mn units.
It is surprising but even plastic production was in a better situation than the all-Russian state of affairs. And the reduction of production volumes decelerated. The production of pipes, construction materials and automobile components reduced, while the production of sheets, film, packaging materials, on the contrary, grew. The number of the residents of Khimgrad increased to 259 in a year, and their total revenue exceeded 20bn rubles.
Concluding his speech, the director general of Tatneftekhiminvest-holding noted a disturbing tendency that might affect the further development of the petrochemical enterprises of Tatarstan. The deceleration of the investment development is one of the key risks in the industry of Russia. After the crisis in 2008-2009, many companies reconsidered their development strategies. As a result, the growth rates of chemical production reduced. The reappearance of this situation may lead to the absence of growth sources in the nearest 10 years. Meanwhile, Germany is going to increase its annual growth rates of GNP by 1%, and China decided that the implementation of new energy sources, development of new materials and robotics are the top sectors for development. Apart from investments, a new view on the system of personnel training, workers' professional development and reforming school and university programmes is needed. In Rafinat Yarullin's opinion, it is impossible to become a real participant in the coming fourth industrial revolution.
Intellectual and industrial potential
The next speakers offered different variants of how Tatarstan would be able to increase the competitiveness of their enterprises and augment the capitalization of their business.
Aleksander Zimnyakov, the Vice President for sales in Russia and CIS of the international technological company Oscial told about the possibilities of collaboration with Kazanorgsintez, Nizhnekamskneftekhim, Tatneft-Presscomposit and Synthetic Rubber Factory of Kazan. This company works with over 300 largest transnational corporations, production concerns and technological companies – the world and sectoral leaders in their spheres: production of chemical substances, automobile building, production of tyre, rubber for technical purposes, composite material, polymers, metals, lithium-ion batteries, displays and touchscreens, paints and coverings. Aleksander Zimnyakov is convinced that it is possible to create a common production of goods based on nanomaterials.
ЕРС GROUP (Germany) has its own technology for polycarbonate production and is ready to build a larger factory in the republic than Kazanorgsintez. Factories on polyamide and lyocell production were included in the projects offered. Rustam Minnikhanov offered the representatives of the German company to meet with the TAIF GP.
Rostelecom OJSC proposes Tatarstan to create local alarm systems in the largest enterprises of the republic. Nowadays the republic has about 500 potentially dangerous enterprises in power engineering, gas, petroleum and chemical industry. And only 15 of them have this system, according to Dias Safin, the director of the branch in Tatarstan. Rostelecom is ready to invest 3-3,6bn rubles during 5 years in the project of creation of local alarm system based on the republican system called Sensor.
Ildar Shaikhutdinov, the director general of the Institute of Financial Development of Business in Moscow, explained how to increase the competitiveness of the republic on the world market smartly estimating the intellectual property. In his view, Tatarstan takes the fourth position in Russia concerning the number of patents registered. However, these intellectual assets don't influence the capitalization of enterprises. If we analyze the financial reports of the companies of the republic, we can see that the portion of intangible assets on their balance don't exceed 3%. Federal companies' state of affairs is better here. Intellectual property is to be capitalized – licences, patents – and include them in their balance. As Shaikhutdinov estimates, the assets of Tatneft would be equal to 60bn rubles. Companies' assets grow, their own equity increases and debt capital proportionally reduces by means of re-evaluation of the intellectual property. According to the speaker, even banks accept the intellectual property as a pledge. In addition, it works during a crisis.
In some western companies, the use of the intellectual property is the key asset. The share of the intellectual capital of the most 'expensive' companies is over 30%.
'Apple's portion of intangible assets probably reaches 70%,' the President presupposed. 'Meanwhile, our elaborations don't convert into high-tech because they are not estimated. Intangible assets are a treasure. One should know to sell them and earn money.' Rustam Minnikhanov remembered the fourth industrial revolution, which had been mentioned by Rafinat Yarullin, and reminded that its realization needs people, knowledge and skills.