Kazanorgsintez increases revenue and augments profit
The petrochemical enterprise of TAIF Group of Companies has drawn conclusions of the first quarter 2018
The beginning of the jubilee year was more successful for Kazanorgsintez than 2017. KOS's next profit was 4,8 billion rubles in the first quarter 2018 while the numbers reached 4,4 billion rubles for the analogous period last year. In addition, Kazanorgsintez continues a systemic update of capacities. In 2017, the Development Programme of Current Factories in 2018-2020 was created to fulfil all ideas. Realnoe Vremya tells the details of quarterly results.
KOS's revenue was 19,6bn rubles in Q1 2018
Kazanorgsintez PJSC has drawn conclusions of the first quarter 2018. The enterprise's revenue rose to 19,6bn rubles for three months against 19,3bn rubles for the analogous period in 2017. In the first quarter 2018, net profit was 4,8bn rubles while it was 4,4bn rubles in the first quarter 2017.
The enterprise's market capitalisation also grew. If in late 2017 the market price for a totality of shares of Kazanorgsintez was 143,6bn rubles, it reached 165,5bn rubles, according to the data for the first quarter this year.
The productivity indicator for the first quarter 2018 was 786,400 rubles of products per worker, which is 2,3% more than the analogous indicator calculated in the first quarter 2017. The growth is mainly linked with increased revenue from the sale of products.
Debt burden reduces
The ratio of debt volume to equity characterises an enterprise's dependence on external investors and creditors: the higher the indicator, the higher the dependence. The indicator was 0,11 in the first quarter 2018 and 0,23 in the analogous period in 2017.
The ratio of the size of the long-term debt to the sum of long-term debt and equity reduced more than twice in the first quarter 2018 in comparison with the first quarter 2017 and was 0,02. The reduction of indicators is linked with a decrease of long-term and short-term obligations and growth of equity.
We should remind that Kazanorgsintez completely paid out debts of loan agreements with Sberbank of Russia PJSC in August 2017 beforehand. The loan was granted in December 2009, and the final payment term was in June 2018. The borrowed money was sent to restructure the company's debt in previously taken out loans to finance an investment programme within which two bisphenol A and polycarbonate factories were built and a big reconstruction of ethylene, LD PE and phenol and acetone plants was carried out.
Prospects of growth
The work on equipment update continued in the enterprise in the first quarter. E-500 and E-200 ethylene plants, warehouses of the section 109/2 of the shop 0109-0110, B reactor of LD PE plant are updated according to the Development Programme of Current Factories in 2018-2020. A cumene production technology with a zeolite catalyst in Bisphenol A Plant will be implemented at Kazanorgsintez. And the fulfilment of projects will allow to increase the conversion of liquefied hydrocarbon gases as pyrolysis feedstock, augment ethylene and polyethylene production volumes.
Moreover, Kazanorgsintez continues the Development Strategy until 2025. It includes issues of feedstock provision and options of augmentation of ethylene, polyethylene production capacities and other areas of production of petrochemical products based on ethylene conversion.