Rustam Minnikhanov about TAIF: ‘The grass is not greener on their side, they work hard’
Having increased analogous indicators in Tatarstan and Russia, Industrial Production Index of TAIF in 2015 has made up 101,2%. This information was given at the annual meeting of the TAIF shareholders with the participation of Rustam Minnikhanov. The participants were told what results and plans the Group has in order to reach a balanced profit equal to 1,5tr rubles by 2025. Price review of a large project on Ethylene Unit in Nizhnekamskneftekhim was mentioned after a traditional press conference with journalists, which took place when conclusions of the meeting were drawn. Details are in the piece of Realnoe Vremya.
1,3tr rubles of investment in the development of the country
Conclusions were drawn to the work of the stock company and the Group of Companies, which consists of 54 enterprises where over 43,000 people work, at the annual meeting of the TAIF shareholders. Albert Shigabutdinov, the director general of TAIF PJSC, presented the main report of the results of the work of the GC and reminded that TAIF celebrated its 25th anniversary in 2015.
'I don't believe it was not yesterday, we have been working for a quarter of a century,' tells Albert Shigabutdinov. '1,3tr rubles of investments have been expended by the companies of TAIF to the development of the country since its creation. These are taxes, social costs, salary, spending on environmental protection and operational safety, including investments in the main production funds of the Group. It all allowed to gain 4,4tr rubles of balanced profit, including indirect taxes. About 40 up-to-date units were built, almost each of them is a factory. Today TAIF GC manufactured 41% of ethylene produced in Russia, 49% of all polymers made in the country, 49% of all polymers manufactured in Russia and 74% of all rubbers of Russia. It is 13% of the whole world market in our segment.'
Albert Shigabutdinov: 'Today TAIF GC manufactured 41% of ethylene produced in Russia, 49% of all polymers made in the country, 49% of all polymers manufactured in Russia and 74% of all rubbers of Russia. It is 13% of the whole world market in our segment'.
Global income redistribution
The director general of TAIF PJSC noted that the accounting period was especially difficult for the Group. A twofold fall in oil prices did not play into its hands because the basis of its business is oil refinery and petrochemistry. Its price grew because of the weakened rate of the national currency.
'If last year we purchased a tonne of the raw material for 11,200 rubles when Urals crude oil was $100 per barrel, in 2015, the price was 13,500 rubles even if the prices fell twofold to $50 per barrel. As a result, we had additional losses equal to about 20bn rubles just to buy the raw material for oil refinery. Despite this fact, the accounting period was record in our history. We managed to augment production volumes of the products that are in demand in the market. According to the results for the accounting period, Industrial Production Index of TAIF is 101,2%, which increased the analogous indicators in Tatarstan and Russia,' Albert Shigabutdinov presented the results. Last year, TAIF GC paid over 63bn rubles of taxes and duties to all budgetary and non-budgetary funds. 21,2bn rubles were expended in the budget of Tatarstan, which is 6,6bn rubles more than in 2014.
'It all was achieved when in Russia there was a global redistribution of incomes from crude oil refiners in favor of companies that extract and sell feedstock,' Albert Shigabutdinov drew the participants' attention to the results of the tax manoeuvre. 'The most important thing is that the main problem of the Russian Federation in oil refinery has not been solved yet: the quality of oil delivered to refinery is worse. The absence of the solution of this problem drags the sector to the edge of abyss.'
Rustam Minnikhanov: 'The Group is one of the basic complexes of our republic. We had the pleasure to visit modernized factories in Kazanorgsintez, Nizhnekamskneftekhim and Heavy Residues Deep Conversion Complex in TAIF-NK, which is to be finished in the short run. Ethylene Plant is the next task of NKNKH'
'We can't stay in one position'
Rustam Minnikhanov noted that he supported everything that the director general of TAIF had said. Having heard all figures for the accounting period, the President of Tatarstan told the results achieved by the Group at a difficult economic time were positive, of course.
'A trillion by 2025 is our next task,' Rustam Minnikhanov set a task. 'I'm convinced that it will be fulfilled when there is such a systematic work. Despite all difficulties, production rates and shares in the market is significate as well as the contribution to the economy of the republic. The Group is one of the basic complexes of our republic. We had the pleasure to visit modernized factories in Kazanorgsintez, Nizhnekamskneftekhim and Heavy Residues Deep Conversion Complex in TAIF-NK, which is to be finished in the short run. Ethylene Plant is the next task of NKNKH. The plans have been mapped out. We can't stay in one position. Otherwise, we will regress.
The President expressed his gratitude to the GC for such an exemplary, socially oriented approach to the business and enumerated a part of the projects executed with the support of the holding: laboratory department of the Butlerov Institute of Chemistry in Kazan Federal University, Sosnovaya Roscha Park. 'And your housing programme! Each flat is happiness, and they are over thousands…' Rustam Minnikhanov approvingly noted. Workers of GC purchased 650 flats using the social mortgage in 2015, and 1,370 flats were given by the additional housing programme of TAIF.
'In addition, we are grateful for the support of sport. You support many teams, including Rubin. Today's task is to make the club play in the Premier League. And it requires a lot of effort, in the formation of a new structure too. It is all a teamwork. I even sympathize Metshin who got engaged in this story, which is impossible to get out,' the President of Tatarstan told.
'I even did not know it was impossible to get out,' the Mayor of Kazan and president of Rubin FC Ilsur Metshin told a joke.
'If all companies worked like you…'
TAIF continues to fulfil its strategic development programme whose goal is to gain a balanced income by 2025 equal to 1,5tr rubles. It will give more than 134bn rubles of taxes and duties. As for short-term programmes, project commissioning in Heavy Residues Deep Conversion Complex will start in the second half of the year in TAIF-NK, it will be put into operation in the fourth quarter. At present the installation of engineering communications is about to finish on the site of the Complex where over 5,000 people work every day. Another big project of the Group approached its fulfilment – Ethylene Plant in Nizhnekamskneftekhim.
'All enterprises of the Group work decently, a big work is done in the energy complex. The year of TAIF ended successfully because they work hard, the grass is not greener on their side. If all companies worked like you, there would not be any fall in the economy of our country,' Rustam Minnikhanov is sure.
The board of directors of the head company consisting of 10 people was approved at the end of the meeting. Rustem Sulteyev was re-elected as chairman.
There were more problems than it was expected
During the press conference that started after the meeting of shareholders with the participation of President Rustam Minnikhanov, director general of TAIF Albert Shigabutdinov and chairman of the board of director of TAIF PJSC Rustem Sulteyev, volumes of dividends were mentioned. Rustem Sulteyev noted that 3,5bn rubles would expended on dividends. It accounts for 36% of net profit of the head company.
The journalists were interested in the plans on expansion of the chain of petrol stations connected with the development of the segment of retail trade of motor fuels produced by TAIF-NK. Albert Shigabutdinov answered that nowadays the Group has 233 petrol stations, and further plans of the Group is to modernize the main property fund, mainly Tatnefteproduct. 'Purchasing these assets, we knew about problems but there were more problems than it was expected,' Albert Shigabutdinov added.
Realnoe Vremya asked about the fulfilment and financing of the project on Ethylene Plant in NKNKH, and the director general answered that the price of the project would be reviewed.
'The declared value at $9bn is an unreal price. This is why there was a short delay in this project. It is an overwhelming price. It should be lower. The price will be known in autumn. And the maximum payback of the project would not exceed 5 years ,' Albert Shigabutdinov told.
