Year of global economic turmoil and hard work: TAIF sums up the results of 2020

TAIF Group's companies have fully fulfilled their obligations in the context of coronacrisis

Year of global economic turmoil and hard work: TAIF sums up the results of 2020
Photo: Roman Khasaev

The spring of 2021 has been marked by an event that, without exaggeration, can be called the largest in Russia, and one of the most significant in the world of oil and gas chemistry. On April 23, the management of TAIF JSC and SIBUR Holding PJSC announced a possible merger of the companies' petrochemical businesses. About the results TAIF Group finished the year 2020 — read in the material of Realnoe Vremya.

Anniversary year for TAIF was a year of challenges

April 23. Moscow. Headquarters of Novatek PJSC. It is where the event took place that became central topic for discussion not only in the oil and gas chemical industry of Russia, but also on a global scale. TAIF Group and SIBUR Holding PJSC announced a possible merger of the petrochemical and energy businesses of the two Russian industry giants. But this is already the year 2021. And the year 2020 was a year of serious challenges for many industries and enterprises. TAIF Group's companies will remember it for their persistent resistance to the consequences of the global economic crisis, aggravated by the global epidemic of the new coronavirus.

“The past 2020 year was the year of the 30th anniversary of TAIF Group. We had thoroughly prepared for this anniversary date — we were planning to achieve the best results. But COVID-19 crossed out all plans, making 2020 the year of unpredictable shocks for the global economy and businesses. The world was hit by a severe crisis," the director general of TAIF JSC, Ruslan Shigabutdinov, gave the brief assessment of the past year to Realnoe Vremya.

Ruslan Shigabutdinov: “The anniversary year for TAIF Group became the year of unpredictable shocks for the global economy and businesses.” Photo: Roman Khasaev

Despite that the Group of TAIF JSC and the Group of TAIF Management Company are independent legal entities and carry out their financial and economic activities independently of each other, the shareholders of the companies decided to sum up the results of the crisis year 2020 together — as TAIF Group.

The economy was shaken globally: the structure of demand was changing, prices for commodity products were falling, the epidemic of the new coronavirus COVID-19 that swept the world, and the strict quarantine measures imposed by many countries temporarily stopped some large-scale production and paralysed both logistics links within states and international trade. As a result, TAIF Group could not avoid a decline in revenue and a drop in profit from its activities.

By the results of 2020, the balanced revenue from the sale of products was received, goods by 23% less than the year before — only 581,7 billion rubles (in 2019 — 753,6 billion rubles), which is 9% of the revenue of all enterprises of the Republic of Tatarstan. A decrease in revenue was due to lower prices for oil and petroleum products.

The Group's balanced income decreased by almost 200 billion rubles compared to the previous reporting period and amounted to 676,8 billion rubles in 2020 (compared to 876,6 billion rubles in 2019). Oil refining, petrochemical and energy complexes of TAIF Group account for the major part of the income — 72%, or 485,3 billion rubles.

TAIF Group's assets continued to show growth. At the end of 2020, they amounted to 911,1 billion rubles, which is by 5% higher than at the end of 2018.

“Against the background of the pandemic, we developed a package of anti-crisis measures, which allowed us to adapt to the current situation and reformat our approach to the implementation of activities. TAIF Group's companies made every effort to stabilise their business, improve operational efficiency, and search for internal reserves and new growth points. Thanks to the fast response, the well-established mechanism of the business model and the accumulated margin of safety, the companies of TAIF Group managed to avoid catastrophic consequences," said Ruslan Shigabutdinov.

For example, the amount of tax payments paid to the budgets of different levels at the end of 2020 exceeded 44 billion rubles, of which more than 9 billion rubles were paid to the consolidated budget of Tatarstan, which is 4% of the total tax revenues to the budget of the republic.

The contribution to the development of the country, including social expenditures, taxes, funds aimed at ensuring industrial safety, environmental protection and investments in the development of TAIF Group itself, amounted to more than 162 billion rubles in 2020. For comparison, even in the more prosperous 2019, this figure was about 157 billion rubles.

Significant funds were invested in ensuring the protection of the life, health and safety of the many thousands of employees of TAIF Group's companies. These efforts have shown high efficiency.

“In today's economic situation, the best thing is the stable operation of the enterprises," Rustam Minnikhanov emphasised during his visit to Nizhnekamskneftekhim PJSC in April 2020.

President of Tatarstan at Nizhnekamskneftekhim PJSC. 17 April, 2020. Photo: tatarstan.ru

“We should appreciate TAIF as a whole and Kazanorgsintez PJSC. We saw a very high organisation of work in the conditions of the coronavirus," the president of Tatarstan highlighted during the visit to Kazanorgsintez PJSC in May 2020.

Rustam Minnikhanov at Kazanorgsintez PJSC. 29 May, 2020. Photo: Rinat Nazmetdinov

The Group has also invested significant efforts and funds in organising and implementing the supply of personal protective equipment to the population of the republic, medical and social workers, specialists of the ministry of emergency situations, law enforcement and transport services, sports institutions and the education system. Polymatiz JSC, a subsidiary of Nizhnekamskneftekhim PJSC, significantly increased the production of medical supplies during the pandemic and established the production of protective masks, as well as disposable suits for medical workers. President of Tatarstan Rustam Minnikhanov also highlighted the importance and significance of one of the largest nonwovens production facilities in Russia for the republic and the country.

Nizhnekamskneftekhim PJSC's subsidiary significantly increased the production of nonwoven materials for medical purposes and established production. Photo: tatarstan.ru

In March, Rustam Minnikhanov visited the plant, and in April, Polymatiz was already developing another new field of activity. Nizhnekamskneftekhim PJSC acquired a line for the production of protective masks, which were sorely lacking in Tatarstan. On April 10, a Ruslan plane, which brought the necessary equipment, landed at Kazan international airport. On 11 April, the installation of the line was started, and by April 15, in the commissioning mode, Polymatiz had produced 57,000 masks, some of which were distributed to employees of TAIF Group's companies, which did not stop the production for a minute. And some of them were donated to medical workers, law enforcement officers and transport companies.

In a matter of days, the equipment for the production of protective masks was installed, set up, and launched. Photo: Nizhnekamskneftekhim PJSC

The line still operates around the clock, providing Tatarstan citizens with personal protective equipment.

The employees of Nizhnekamskneftekhim PJSC developed an antiseptic that has passed the state certification, which gives the right to use it as a disinfectant. Kazanorgsintez PJSC, as well as other companies of the Group, actively joined in the fight against the pandemic and donated funds to the reserve covid hospital on the basis of the Republican Clinical Hospital for the purchase of almost 2,000 reusable anti-plague suits for doctors working in the “red” zone.

Besides, with the support of TAIF Group and with the approval of the shareholders, a specialised structure was created on the basis of the Institute of Fundamental Medicine and Biology of the Kazan Federal University — Scientific and Clinical Centre for Precision and Regenerative Medicine (NKCM) — DNA R&D Centre ANO. With the beginning of the pandemic, DNA R&D Centre ANO and the NKCM K(P)FU started developing a COVID-19 vaccine and rapid test systems to determine the presence of antibodies to coronavirus infection in human blood.

With the support of TAIF JSC, the development of a COVID-19 vaccine and rapid test systems for determining the presence of antibodies to coronavirus infection in human blood was carried out. Photo: Roman Khasaev

TAIF Group's investment projects

The total volume of investments in the construction of new and renovation of existing production facilities in the past year amounted to 78,4 billion rubles, or 21% of all investments in fixed assets in the Republic of Tatarstan. For the period from 1995 to 2020, the total investments of TAIF Group's companies in the economy of Tatarstan and Russia amounted to 866,5 billion rubles (21,4 billion USD).

Ninety-three per cent of the Group's total investments in 2020, or 72,9 billion rubles, are TAIF Group's contribution to the development of oil refining, petrochemistry, chemistry and energy.

One of the key projects of TAIF Group is the construction of the ethylene complex. In February 2020, Nizhnekamskneftekhim PJSC and Turkish company Gemont signed a contract for the implementation of a complex of construction and installation works under the project “The construction of the EP-600 olefin complex”.

February, 2020. Signing ceremony of the contract for the implementation of the complex of construction and installation works under the project “The construction of EP-600 olefin complex” between Nizhnekamskneftekhim PJSC and Turkish company Gemont. Photo: Roman Khasaev

The project for the construction of the EP-600 — the first and so far the only major complex in the recent history of Russia capable of processing 1,8 million tonnes of raw materials — straight-run gasoline — was launched in June 2017 with the signing of the memorandum of strategic cooperation between TAIF Group and German company Linde AG and, within its framework, an agreement between Nizhnekamskneftekhim PJSC and Linde Engineering for the design, the supply of equipment and the provision of services for the commissioning of the first stage of the future complex. In addition to 600,000 tonnes of ethylene, it is planned to produce 273,000 tonnes of propylene, almost 250,000 tonnes of benzene, 88,000 tonnes of butadiene, 64,000 tonnes of butylene-isobutylene fraction, 65,000 tonnes of C5 fraction, and 17,000 tonnes of C-9 fraction, as well as 93,000 tonnes per year of pyrolysis resin, and more than 300,000 tonnes of methane-hydrogen fraction. With the commissioning of this facility, the total volume of processing of raw materials obtained from oil and gas condensate at Nizhnekamskneftekhim PJSC will amount to more than 3,5 million tonnes a year. Such large-scale complexes were not built even in the best years of the period of active industrialisation of the USSR.

The works on the EP-600 construction site began immediately after obtaining the construction permit. In June 2020, the installation of large-sized equipment was started. The primary fractionation column was the first to be installed on the foundation. In total, during the navigation period of 2020, 264 pieces of equipment were delivered by water, including 17 large-capacity ones.

In June, the installation of large-capacity equipment began at the EP-600 construction site. Photo: Rinat Nazmetdinov

The commissioning of the complex will inevitably lead to the emergence and development in Tatarstan, and Russia as a whole, of many industries that will use the entire range of products of the EP-600 for the production of final, consumer-demanded goods.

Throughout 2020, the team of Nizhnekamskneftekhim PJSC successfully worked on the production of new product brands, modernisation of existing production facilities, and increasing their efficiency In particular, last year Nizhnekamskneftekhim PJSC completed the construction of the new production of divinyl-styrene synthetic rubber of the fifth generation with a capacity of 60,000 tonnes a year — the basis for creating environmentally friendly tyres.

Throughout 2020, the team of Nizhnekamskneftekhim PJSC successfully worked on the production of new product brands, modernisation of existing production facilities, and increasing their efficiency Photo: Nizhnekamskneftekhim PJSC

The new rubber is of interest to tyre manufacturers. DSSK provides better grip on wet roads and thus increases road safety. These tyres have a low level of noise when driving and save fuel due to low rolling resistance.

Kazanorgsintez PJSC is completing the second stage of modernisation of the first and only plant for the production of polycarbonates in Russia, the CIS countries and Eastern Europe. Thanks to the upgrade, the production capacity will increase from the design 65,000 tonnes to more than 100,000 tonnes of products a year.

Kazanorgsintez PJSC is completing the second stage of modernisation of the polycarbonate plant with bringing the production capacity to 100,000 tonnes a year. Photo: Maksim Platonov

The polycarbonate produced by Kazanorgsintez PJSC is sold on the Russian market, as well as exported abroad — mostly to Asia. The Russian market is specific and differs from the world market. Here, polycarbonate extrusion brands with a melt flow index value of 6-7 g/10 min are in demand, the main area of use of which is the production of cellular and sheet polycarbonates, which are extremely necessary in construction.

In 2020, the implementation of projects for the construction of own generating capacities at the key petrochemical companies of TAIF Group continued: A 495 MW CCGT for Nizhnekamskneftekhim PJSC and a 284,4 MW CCGT for Kazanorgsintez PJSC. As a fuel, they will use gaseous stripping of production (syngas), which will have a positive impact on the environmental situation.

In 2020, the implementation of projects for the construction of own generating capacities at Nizhnekamskneftekhim PJSC and Kazanorgsintez PJSC continued. Photo: Nizhnekamskneftekhim PJSC

The management of TAIF Group and Siemens Energy, the world's leading technology company in the energy sector, discussed the progress of the construction of both the ethylene complex and the new CCGT in February 2021 via videoconferencing.

“The commissioning of the power plant at Nizhnekamskneftekhim is of great importance both for TAIF Group, Nizhnekamsk, the Republic of Tatarstan, and for Russia as a whole — it is one of the largest projects in the country in the field of power engineering," said Albert Shigabutdinov, the chairperson of the board of directors of TAIF JSC, chief development adviser to the director general of TAIF JSC.

Management of TAIF Group and Siemens Energy discussed the progress of the construction of the CCGT-TPP in Nizhnekamsk in February 2021 via video conferencing. Photo: Roman Khasaev

“It was a special event when we launched this project, and the completion of it should be just as special," said Christian Bruch, the president at Siemens Energy. He added: “We see the special role of the project right now, when the Year of Russian-German Cooperation in the Field of Sustainable Economic and Energy Development has been announced. I believe that our project will be the highlight of this programme. I am sure that we need this project to demonstrate an example of a successful partnership between Russia and Germany in the field of energy.

The use of syngas as fuel is the cutting-edge technology, first tested by Siemens in the development of turbines specifically for the CCGT-TPP of Nizhnekamskneftekhim. This will significantly reduce the burden on the environment.

In September 2020, a new high-pressure gas pipeline was put into operation from the GRS No. 2 in Yelabuga (Central) to Nizhnekamskneftekhim PJSC, TAIF-NK JSC. Photo: Roman Khasaev

The operation of the CCGT under construction for Nizhnekamskneftekhim PJSC will be carried out both on syngas and on natural gas, the shortage of which in Nizhnekamsk is no longer present and is not expected at least in the next few decades. And all this is thanks to the new 36 km long high-pressure gas pipeline built by GTK PLC (part of TAIF Group), from the GRS No.2 in Yelabuga (Central) to Nizhnekamskneftekhim PJSC, TAIF-NK JSC, and put into operation in September 2020. The new gas pipeline solved the problem of providing reliable gas supply to the Nizhnekamsk industrial hub from two independent sources.

It should be noted that in connection with the large-scale projects being implemented (such powerful production facilities in the USSR were called all-Union construction sites and were built at the expense of the state budget and the entire country — editor's note), as part of the Development Strategy, the Group's companies attract significant borrowed funds, including in foreign currency. As of 1 January, 2021, TAIF Group's netted debt on loans and borrowings amounted to 229,7 billion rubles, which is comparable to the volume of public debt of the largest subjects of the Russian Federation. TAIF Group is responsible for its own liabilities and provides timely servicing of short-term and long-term loans and borrowings.

Share of TAIF Group's companies accounts for 15% of Tatarstan's industrial production

The total volume of industrial production and services rendered in the Republic of Tatarstan last year in monetary terms exceeded 2 trillion 721 billion rubles. The share of TAIF Group's companies accounts for 15%.

The share of TAIF Group in the total volume of shipped goods of own production in the key industries of TAIF Group — oil refining, petrochemistry, chemistry and power engineering — in the Republic of Tatarstan in 2020 amounted to 41%.

TAIF Group occupies a prominent place in the Russian and global markets of plastics and rubbers and plays a significant role in the fuel and energy sectors of the Republic of Tatarstan and the country as a whole.

The main volume of products, goods and services produced by TAIF Group companies — 74% — is sold on the territory of the Russian Federation. The export component is 26%, respectively, — mainly synthetic rubbers and diesel fuel. The geography of export supplies covers almost all continents and includes 68 countries and states of the world.

Main oil products in 2020 maintained a downward trend in prices

The year 2020 for oil refining is characterised by an unprecedented combination of negative factors. In 2019 and early 2020, there was a record overproduction of oil product stocks. Against the background of the spread of COVID-19, there was a sharp drop in demand, which in turn provoked an almost twofold collapse in prices for petroleum products. The negative dynamics remained at the end of the reporting period as a whole. Diesel fuel lost the most in price, with quotations for which decreased by 38% to the level of 2019. As for the remaining oil products, a decline in quotations was from 29% to 33%. All this led to a drop in gross revenue from sales of TAIF-NK JSC's products by 28,6% compared to 2019, to 179,1 billion rubles.

Out of 78 million tonnes of diesel fuel produced in Russia, Tatarstan accounts for 6,5 million tonnes. Of these, 2,9 million tonnes, or 45% of Tatarstan's volumes and 4% of the total in the country — is the merit of TAIF-NK JSC. Of 38,4 million tonnes of Russian gasoline, Tatarstan produces 1,7 million tonnes, including 452,700 tonnes, that is, more than a quarter of the country and 1,1% of the total Russian volume, are produced by TAIF-NK JSC.

By the results of 2020, the oil refining complex of TAIF Group processed 7,3 million tonnes of oil and gas raw materials (in 2019 — 8,3 million tonnes). 7,1 million tonnes of commercial products were produced, including 5,5 million tonnes (77%) of light oil products and 1,6 million tons (23%) of heavy oil products.

The decrease in volumes compared to the level of 2019 is due not only to a significant drop in demand for petroleum products both on the domestic and global markets, but also to a continuing increase in the volume of low-quality raw materials — the oil supplied for processing to TAIF-NK JSC.

The constant increase in the supply of low-quality oil to TAIF-NK JSC from year to year leads to a decrease in the technological efficiency of the equipment. The lack of technologies in the world that make it possible to efficiently process high-sulphur and heavy grades of oil leads to clogging of technical equipment with asphaltene-resin-paraffin deposits. To ensure the safety of production, as well as to avoid the occurrence of critical situations, the company's management was forced to reduce the load of processed oil.

In turn, reducing the content of light fractions in oil reduces the revenue from the production of petroleum products. At the same time, the capacity utilisation for the primary processing of oil and gas raw materials of TAIF-NK JSC at the end of 2020 amounted to 91,3% (the average level of utilisation of Russian refineries is 82,3%).

In 2020, the HRHCC switched from start-up and commissioning to comprehensive testing of systems. The industrial launch is scheduled for 2021. Photo: Roman Khasaev

The oil refinery of TAIF Group steadily both consecutively modernises and expands its own capacities to raise the conversion rate of high-quality light oil products. In 2020, investments in key assets of TAIF-NK JSC totalled 5,1 billion rubles, of which 3,3bn rubles were invested in the project of the Heavy Residues High Conversion Complex (HRHCC), the total amount of investments in the facility in 2019 topped 110 billion rubles. Last year, the HRHCC switched from start-up and commissioning to comprehensive testing of systems detecting and gradually eliminating problems. During the operation of the Complex in 2020, the oil and gas condensate conversion rate even using tar as designed feedstock reached 95% in 2020, while the year-end indicator was 81,5%.

When Rustam Minnikhanov was looking over expositions of participants in Tatarstan Gas and Petrochemical Forum in September 2020, the Tatarstan president was told about the efficiency of the complex and demonstrated the assortment of products it made — propane and butane fractions, straight-run petrol, diesel fuel with a very low content of sulphur (less than 3 ppm), hydrotreated vacuum gasoil and granulated sulphur.

TAIF JSC Director General Ruslan Shigabutdinov demonstrated products of the HRHCC to the Tatarstan president. Photo: Rinat Nazmetdinov

The designed operation of the complex processing tar and vacuum gasoil considering all problems found during the plant’s test mode will allow processing high-quality light oil products at TAIF-NK JSC in general to 98,2%. Veba Combi Cracker technology confirmed its reliability, efficiency and right to further use.

3,4 million tonnes of chemical and petrochemical products in 2020

TAIF Group’s chemical and petrochemical enterprises — Nizhnekamskneftekhim PJSC and Kazanorgsintez PJSC — demonstrated stable performance in 2020. The demand that collapsed because of the pandemic 2020, disrupted logistics due to quarantine-related restrictions and the shutdown of many large companies of the world as well as abnormally low prices for petrochemicals led to a sudden fall in demand for polymers too. After mobilising all its effort and possibilities, the petrochemical arm of TAIF Group managed to demonstrate economic stability even in such conditions worsened by higher competition in the Russian market.

Revenue of Nizhnekamskneftekhim PJSC and its subsidiaries in 2020 amounted to 161,1bn rubles. Photo: gelio.livejournal.com

1,6 million tonnes of plastics made by Group’s companies hold 100% of production in Tatarstan and 28% of all-Russian volumes in 2020. 593,200 tonnes of rubbers manufactured by Nizhnekamskneftekhim PJSC are made a hundred per cent in Tatarstan and account for 64% of all Russian synthetic rubbers.

In 2020, the revenue of Nizhnekamskneftekhim PJSC and its subsidiaries reached 162,1 billion rubles, EBITDA did 13,2 billion rubles, that of Kazanorgsintez PJSC was 62,8 billion and 14,2 billion rubles respectively. The strategic task of TAIF Group in the foreseeable future is to constantly work to expand production capacities, improve the quality and raise the number of products and enter new markets and increase sales geography.

12,9 million tonnes of key hydrocarbon feedstock and semi-finished products were processed in 2020. The load of production capacities reached 82%. Greater integration of production flows between TAIF Group’s companies leads to a greater share of feedstock purchased inside Group. If this number in 1995 was close to zero, in 2020, the share of such feedstock reached 1,121 tonnes. At the same time, the amount of feedstock bought from other suppliers goes down, from 50% in 1995 to 20% in 2020.

In 2020, the companies of TAIF Group manufactured 1,201 tonnes of ethylene (28% of the Russian volume). 2,144 tonnes of polymers, or 33% of their total production in the country in the types of polymers produced by TAIF Group, were made. In a number of polymers, Group’s companies are undoubted leaders in Russia. TAIF Group is the country’s unique manufacturer of polycarbonates, ethylene vinyl acetate, simple polyesters made of propylene oxide, and some sought-after polyethylene types. The products of Group are in high demand not only in the homeland but also far beyond its borders. Suffice it to say that such acknowledged leaders of the world’s tyre industry as Continental, Pirelli, Michelin, Bridgestone, Goodyear are big consumers of a wide range of synthetic rubbers made in Tatarstan.

TAIF Group constantly works to expand and update its assortment. Petrochemicals of TAIF Group include 581 brands today that are popular among both Russian and global markets. TAIF Group’s companies have the possibility of making exclusive polyethylene brands successfully competing with foreign manufacturers. Only Kazanorgsintez PJSC produces metallocene linear polyethylene in Russia. Also, Kazanorgsintez PJSC is the only Russian company that is a member of the PE100+ Association uniting the world’s 14 best polyethylene pipe producers.

Only Kazanorgsintez PJSC produces metallocene linear polyethylene in Russia. Photo: Kazanorgsintez PJSC

Isocyanate production as well as isocyanate-based polyurethane systems and an expansion of simple polyester production are promising areas. Kazanorgsintez PJSC plans to increase ethylene capacities to 654,000 tonnes a year from 2021. For this purpose, the ethylene plant is already being modernised to use an additional amount of propane as pyrolysis feedstock.

One of the reactors of low-density polyethylene production and processing plants are upgraded — relatively small investments will allow significantly increasing the production capacity. It is scheduled to complete the construction of the autoclave ethylene-vinyl acetate and HDPE unit by 2024, which will allow decommissioning the obsolete first line of HDPE Plant, expanding the range of ethylene-vinyl acetate brands. The development plan of Kazanorgsintez through 2030 envisages two large projects. It is the construction of new ethane recovery units from helium at Gazprom Dobycha Orenburg LCC, which will enable to additionally produce up to 490,000 tonnes of ethane a year. Also, Gazprom PJSC and SIBUR Holding PJSC are discussing the construction of a gas processing plant in Tatarstan and supplies of Urengoy’s natural wet gas to the republic.

Kazanorgsintez has always considered different options to build new capacities to process ethane feedstock. Photo: Roman Khasaev

These projects will allow expanding ethane processing volumes at Kazanorgsintez PJSC to more than 3 million tonnes a year.

Energy of TAIF Group: incomes fall by 5,1%

More than a third of heat and electrical energy generated in Tatarstan comes from TAIF Group, namely, TCG-16 JSC. In 2020, 24 billion kWh of electrical energy was generated in 2020 8,3 billion kWh of this amount, or 35%, was produced by TAIF Group’s company. It is 0,8% of the Russian generation. TGC-16 JSC also accounts for 18,3 million Gcal of 52 million Gcal of Tatarstan thermal energy. It is 35% of the total amount of heat produced in the republic in 2020 and 1,5% of the Russian quantity.

TAIF Group’s energy sales revenue in 2020 was 53,9 billion rubles, which is 5,1% less than in 2019. The reduction in electrical energy was 5%, in thermal energy — 6,6%. Like generally in the world and Russian economy, the novel coronavirus infection, restrictive measures related with it became the main reason for the negative dynamics, which led to lower consumption of thermal energy by industrial enterprises from TGC-16’s branches and, as a consequence, a reduction in combined-cycle electrical energy generation in power plants.

TAIF Group’s energy sales revenue in 2020 was 53,9 billion rubles. Photo: TGC-16 JSC

Electrical energy sales hold the biggest share in the pattern of incomes of TGC-16 JSC (60% in money terms). Branches of TGC-16 JSC generated 8,3 billion kWh in 2020. During the pandemic, with lower production of thermal energy for industrial enterprise, combined-cycle electrical energy generation decreased by 10,8% compared to 2019. The generated electrical energy is sold in the wholesale electricity and capacity market.

Thermal energy is sold to industrial consumers as steam and hot water and to heat suppliers as hot water. In 2020, thermal energy generation at TGC-16 JSC was 18,3 million Gcal. Moreover, its key share — 83% (15,2 million Gcal) — belongs to TAIF Group’s companies.

TGC-16 PJSC continues actively introducing energy-saving technologies and improving its efficiency. In 2020, brake specific fuel consumption in electrical energy generation was 232 g/kWh, which is one of the best digits in Russia. In comparison with 2010, when TGC-16 JSC was created, the indicator reduced by 24%.

The company’s five applications were included in a programme designed to modernise generating facilities of thermal power plants with the launch of capacities in 2025-2026, which will allow modernising 417 MW of generating capacities.

At the same time, TCG-16 JSC itself launched a programme to replace heating surfaces of boilers until 2030.

After the construction of own energy sources at Nizhnekamskneftekhim PJSC (a 495 MW gas turbine) and at Kazanorgsintez PJSC (284,4 MW gas turbine) ends, the installed capacity of TGC-16 JSC and TAIF Group’s enterprises in 2023 will grow to 2,524 MW.

Total revenue of TAIF Group’s petrol stations is 17,1 billion rubles

The chain of petrol stations of TAIF Group managed by TAIF-NK Petrol Stations LLC nowadays includes 232 petrol stations, including 34 mono-fuel stations. The chain is present in 41 of 43 administrative districts of the republic. Petrol stations of Group also operate in Samara, Kirov, Ulyanovsk Oblasts, Udmurt and Chuvash republics.

Group’s petrol stations sell a lot of petroleum products made by TAIF-NK JSC oil refinery. In 2020, the total amount of motor fuel sold via the chain of Group’s petrol stations was equal to 352,000 tonnes, which is 6% less than in 2019.

The chain is present in 41 of 43 administrative districts of the republic. Petrol stations of Group also operate in Samara, Kirov, Ulyanovsk Oblasts, Udmurt and Chuvash republics. Photo: Maxim Platonov

The total revenue of Group’s petrol stations was 17,1bn rubles. 210 million rubles are earned from non-fuel sales. This indicator rose by 6% compared to the previous accounting period. First of all, it did thanks to a bigger number of the number of fully-fledged stores at petrol stations. Net sales profit in 2020 was 433 million rubles.

A modernisation programme of TAIF Group’s chain of petrol stations, which started in 2018, has already covered 18 stations. It is planned to have 159 of 232 operating stations in one style by 2025. 153 of them will have fully-fledged stores.

Commodities of another production of TAIF Group has replenished the assortment of goods sold at the company’s petrol stations since 2021. A large-scale modernisation of Russia’s unique polyalphaolefin-based basin synthetic oil plant, which was built as early as 2003, finished in November 2020. In late 2020, the company was registered as a producer of synthetic oils by the American Petroleum Institute. The first licences for motor oil were obtained, a dealer chain was created.

Russia’s unique polyalphaolefin-based basin synthetic oil plant started to operate in late 2020 after a large-scale modernisation. Photo: Roman Khasaev

Synthetic Oil Plant’s (TAIF-SM LLC, TAIF Lubricants brand) advanced infrastructure and its own R&D platform allow developing original formulas for specific conditions of equipment use, that’s to say, providing an individual approach to consumers and partners’ requests. We can confidently talk about the creation of innovative import-substituting production of highly efficient oils and lubricants by TAIF Group in Nizhnekamsk based on its synthetic oils, which are the only in the country to have unique characteristics allowing using them in extreme conditions and high loads. Moreover, such oils are absolutely eco-friendly.

In November-December 2020, TAIF-SM LLC managed to produce 240 tonnes of oils and 754 tonnes of polyalphaolefins. Last year, the company’s revenue was 61,3 million rubles.

TAIF MG JSC: incomes rose, profit decreased

The activity of TAIF MG JSC and its subsidiaries besides the production of lubricants is also focused on the preparation for the production of bioplastic, construction materials and construction, information, integrated and other services.

The activity of TAIF MG JSC coordinates with TAIF JSC, which allows enhancing the effectiveness of tasks of monitoring and control over financial investments and property of Group.

In 2020, incomes of TAIF MG JSC, including indirect taxes, reached 463 million rubles. In comparison with 2019, this number rose by 285 million rubles. The growth is mainly noted in commodity turnover as well as property rent. While net profit fell many times — from previous 720 million rubles to 90 million. The amount of taxes and duties paid by the managing company to all budget levels more than doubled against the previous accounting period — 143 million rubles against 62 million rubles in 2019. The main part — 122 million rubles, or 85% — was paid to the consolidated budget of the Republic of Tatarstan.

Assets of TAIF MG JSC demonstrated a rise. In 2019, they increased by 75 million rubles and reached 24 billion 572 million rubles. Net assets accounted for 24 billion 493 million rubles.

In the future, TAIF MG JSC plans to implement a series of investment projects designed to perfect and improve the economic efficiency of the activity of Group’s companies. It is scheduled to modernise the production of construction materials and construction and upgrade the transport fleet of Kazan Silicate Wall Materials Plant LLC, TAIF-ST LCC and Keramika-Sintez LLC. It is planned to further develop an area that’s new for the Russian market — bioplastic production at 2BIO JSC — and expand the production, the range of brands and sales geography of TAIF-SM LLC’s Synthetic Oil Plant. Plans for purchases of new aircraft for Tulpar Air Airline LLC were voiced.

43,7 billion rubles on social expenditures and charity

Despite the tough economic conditions amid a fall in revenue and profit, the companies of TAIF Group continued implementing projects in such important social areas as the development and support for professional and amateur sport, the health care system, children’s education as well as professional training and upgrade of qualification, providing people with comfortable housing, support for culture and religion, veterans and disabled people throughout 2020. Also, Group’s companies actively participated in hosting socially important events.

During the self-isolation whose peak was in spring, including during the celebration of Victory Day, attention to veterans was crucial. All companies of TAIF Group visited veterans of the Great Patriotic War and home front workers, gave them presents, food baskets, jubilee medals and financial aid. Even though it was decided to postpone the festivities dedicated to the 75th anniversary of Victory in the Great Patriotic War caring about people’s lives and health because of the coronavirus epidemic at federal level, the management of TAIF Group paid floral tributes to monuments to the soldiers who died during the war.

On Victory Day, the management of TAIF Group paid floral tributes to monuments to the defenders of the Fatherland. Photo: Rinat Nazmetdinov

TAIF Group’s companies have always been socially responsible businesses. Both in the past and especially now, during the pandemic. TAIF provides as much help and support as possible as to health care establishments: money is allocated for the construction, big and small repairs of hospitals and polyclinics, purchase of new equipment, special transport and protective gear, prevention and treatment of the workers of Group’s companies.

Despite the global economic decline and a decrease in business activity around the world, which also seriously affected TAIF Group’s companies, amateur and professional sport is provided as much support as possible. So Kazanorgsintez PJSC has been a permanent sponsor of Sintez water polo team, which grew into Sintez aquatics club with time, which is unique for the republic and the country, since its foundation day. Cooperation with the Russian Football Union (RFU) goes on. In December 2019, TAIF JSC and the RFU signed an agreement on cooperation aimed to develop children’s football in Russian regions, first of all, in Tatarstan. Football clubs — Rubin and Neftekhimik — receive serious support. So large-scale reconstruction of Neftekhimik Football Club’s home namesake stadium took place in Nizhnekamsk at the expense of TAIF Group, which is over 400 million rubles. Also, four indoor football venues opened in the republic, while several children’s teams, including the Neftekhimik FC youth sports school, obtained the status of children’s football centre. Ice hockey is also paid attention by TAIF Group. Neftekhimik club replies with victories and serious achievements to the care.

In general, 43,7 billion rubles were spent last year to finance socially important areas.

The home stadium of Neftekhimik FC opened with the Tatarstan president in Nizhnekamsk in September 2020 after large-scale reconstruction organised by TAIF Group. Photo: Roman Khasaev

Highly professional specialists are TAIF’s core asset. At the height of the pandemic, when plants were shut down and companies had to optimise their costs, including the costs on staff, around the world, Group’s companies didn’t stop the production of goods that were in demand in the production of vital products — medical equipment, protective gear, fuel, heat, electrical energy — even for a day.

During the COVID-19 epidemic, TAIF Group not only didn’t cut the staff but also increased its number to 39,700 people (38,600 in 2018, 39,500 in 2019). Moreover, the workers’ average salary rose by 6,5% compared to the previous year and was 60,900 rubles, which is 53,8% higher than analogous numbers across the Republic of Tatarstan and 19,2% more than in the Russian Federation on average. Considering all social payouts and preferences, the workers’ average wage in 2020 was 64,000 rubles a month.

Both the management and the workers of TAIF Group take care of the homeland. Last year, Group allocated 7,4 billion rubles for environmental protection measures and improvement of rational use of resources. In February 2020, Director General of TAIF JSC Ruslan Shigabutdinov told participants in a meeting of the Volga-Kama regional office of Russia’s environmental watchdog and head of the federal service for environmental protection Svetlana Radionova about how much effort Group’s companies put to save and restore the environment. The investments of TAIF GC’s enterprises in environment protection in the last three years had been over 23 billion rubles. It is re-equipment of operating capacities, construction of biological treatment facilities in Nizhnekamsk and a long-term strategy for the highest possible re-use of natural resources in the manufacturing cycle and co-generation in energy.

In February 2020, Director General of TAIF JSC Ruslan Shigabutdinov talked about how much effort Group’s companies put to save and restore the environment at an extended meeting of the Volga-Kama regional office of Russia’s environmental watchdog. Photo: tatarstan.ru

Group’s companies invested another 8,5 billion rubles last year to provide process and occupational safety.

“Analysing 2020, we are convinced once again that a crisis is a test for flexibility and the ability to adapt to new realities. Today our key task is to save the accumulated potential and not to miss new opportunities that arise during a crisis. We have no illusions and understand that 2021 will be tough, with a lot of problems caused by the pandemic. But we look into the future with confidence and optimism, with a clear programme of activity based on a strategic vision of our development,” Director General of TAIF JSC Ruslan Shigabutdinov stressed in an interview with Realnoe Vremya.

By Arseny Favstritsky
Tatarstan