Revenue growth, launch of new plants, assortment expansion: results of Nizhnekamskneftekhim’s first half of the year
The petrochemical company has made its financial report public. The company’s revenue has been 118,2 billion in the last six months against 67,1bn in last year’s analogous period
During the first half of 2021, Nizhnekamskneftekhim has demonstrated positive production and financial results. In the last six months, the company has manufactured 1,35 million tonnes of all types of products, which is 170,000 tonnes more than during last year’s analogous period. The enterprise has continued implementing key projects for Tatarstan and Russia’s economies — the construction of an EP-600 ethylene complex and its own 495 MW CCTG-TPP, expanded the assortment of products and launched modern plants. Read in Realnoe Vremya’s report about the milestones of the year as well as the financial activity of the enterprise.
Revenue has totalled 118,2 billion rubles
Financial and production indicators of Nizhnekamskneftekhim PJSC in the first half of 2021 have rapidly grown. The company’s revenue in the last six months has been 118,2 billion rubles against 67,1bn during last year’s analogous period. Gross profit has risen to 38 billion rubles, which is 21,6 billion more than during the first half of 2020 (16,5 billion).
Sales revenue has increased to 29 billion rubles versus 9,4 billion in 2020. Net profit has augmented more than eight times and totalled 24,9 billion rubles against 2,9 billion during the first half of 2020. By the way, the company’s net profit in 2019 before the introduction of restrictions during the pandemic amounted to 23,7 billion rubles.
During the first half of 2021, taxes have been 9,3 billion rubles. This is 5,8 billion rubles more than during the analogous period last year, which is 267%. 3,4 billion rubles have been paid to the federal budget, 5,9 billion have been paid to the budget of Tatarstan.
“Nizhnekamskneftekhim has turned out one of the leaders in dynamics of industrial growth. The production of the company’s goods has risen by 15,5% in the first half compared to the pandemic period. This is conditioned by the global economy’s recovery and growing demand for polymers in the world,” Director General of Neftekhiminvest-holding PJSC Rafinat Yarullin noted at one of the meetings.
So 1,35 million tonnes of all types of commodities have been made at Nizhnekamskneftekhim PJSC in the last six months this year. Compared to the analogous period last year, the total production of commodities has grown by 170,000 tonnes. Rubber output has ramped up by 74,000 tonnes compared to the first half of 2020. 336,400 tonnes of rubbers have been made from January to June against 262,700 tonnes during last year’s analogous period. Plastic production has been 357,400.
Experts think that Nizhnekamskneftekhim’s positive production and financial results have been achieved thanks to a favourable economic situation in world markets.
“World prices for most polymer types have updated the record high this year. Following world prices, prices have risen in the domestic market too. The growth of wholesale prices for motor fuels, polymers, rubbers has been from 13 to 50%. Large-tonnage chemical enterprises expect the biggest revenue, profit and taxes,” noted Director General of Tatneftekhiminvest-holding PJSC Rafinat Yarullin.
Analysts forecast Nizhnekamskneftekhim will show strong numbers, this time thanks to growing production amid a recovery of demand for petrochemicals and an expansion of assortment.
“Nizhnekamskneftekhim is implementing a large-scale investment programme thanks to which the enterprise will regularly increase the production in the foreseeable future. For instance, a new rubber plant has been put into operation in the second quarter of 2021,” notes Filipp Muradyan, director of Expert RA group of corporate ratings.
Nizhnekamskneftekhim works on expanding its assortment according to schedule. The company has produced four new innovative products since early 2021 — it is the fifth general S-SBR, Li-BR (SKD-777 rubber), TPE and polyethylene glycol N-PEG-2400.
A solemn launch ceremony of the solution styrene-butadiene rubber (S-SBR) production with a capacity of 60,000 a year and styrene-butadiene-styrene thermoplastic elastomer (TPE) was on 26 May during the celebration of the republican Chemist Day together with Tatarstan President Rustam Minnikhanov.
“We are opening a new modern plant,” the head of the republic stressed. Today it is styrene-butadiene rubber. It is the cutting-edge product all car tyre manufacturers need. It is a profitable and very good product. It is necessary to note that this facility was possible only with the high research and development potential of Nizhnekamskneftekhim. I would like to thank TAIF Group of Companies for such projects.”
By the way, the active stage of the S-SBR project coincided with the period of tough restrictive quarantine measures. Nevertheless, all construction works were done fully.
“It is the latest functionalised fifth-generation rubber with exceptional operational characteristics, one of the key elements of the world green economy in car tyres. With the beginning of production of this high-tech product, Nizhnekamskneftekhim has taken a step up in modern synthetic materials showing an example of the high professionalism of the staff of Tatarstan petrochemists to the world. With the launch of this facility, we certainly become a rubber ‘supermarket,’ a unique enterprise in the world that makes almost the whole range of rubbers here, in Nizhnekamskneftekhim, in Tatarstan,” noted Director General of TAIF JSC Ruslan Shigabutdinov during the opening ceremony.
The use of S-SBR in tyre production allows expanding its service, a better grip with a wet, icy road and lower fuel consumption. S-SBR can also be used in the production of various rubber commodities.”
“The S-SBR production is a strategically important project of the company, and we managed to successfully implement it despite the hardships related to the coronavirus pandemic. S-SBR has valuable qualities for tyre production. It is used to make eco-friendly, green tyres that are very wear-resistant, frost-resistant and dynamically enduring. I am thanking all the staff for dedicated work, professionalism, tenacity and perseverance illustrated during the construction and preparation for the launch of the production,” Director General of Nizhnekamskneftekhim PJSC Ayrat Safin noted the importance of the production.
Styrene-butadiene-styrene thermoplastic elastomer (TPE) is another new type of polymer that was made in this plant. This product is used as an additive to an asphalt concrete surface and roofing materials. High compatibility with road and roof concretes, an optimal balance of mechanical endurance and elasticity as well as the possibility of multiple recycling without worsening of quality characteristics are among key features. The prime cost of asphalt and concrete surface with thermoplastic elastomer rises by 1%, while the service life of asphalt doubles.
The latest technology complying with international standards of industrial and environmental safety was used during the construction of the new production. The new production line uses a modern unit to treat air emissions at the rubber separation stage, this additional measure allows impeding polluting substances from ending up in the atmosphere.
Innovative SKD-777 and N-PEG-2400
The next innovative product the petrochemists have mastered is SKD-777 butadiene rubber. Lithium butadiene styrene rubber was periodically designed in 2018. It started to be mastered on a large scale in 2021. The new SKD-777 rubber is characterised by a high content of 1,2-links, low molecular weight distribution and functional groups in the polymer chain. SKD-777 is used in the formulation of protective rubber mixtures to make car and lightweight summer and all-season tyres.
An analysis of physical and mechanical trials showed that SKD-777 has advantages compared to foreign rubbers. It is characterised by a higher grip and low rolling loss.
Also, Nizhnekamskneftekhim PJSC mastered the production of a new type of product — high molecular oxyethylated N-PEG-2400. It is designed to produce superplasticisers of the fifth-generation concrete mixtures. Universal additives, which are based on N-PEG-2400, allow storing concrete before use. The endurance of the surface increases significantly too.
The know-how is a joint development of employees of the company’s R&D Centre and specialists of Oligomer and Glycol Plant. To make this a reality, the petrochemists re-equipped one of the operating plants — a nonoxynol unit.
The new product is being approved by designers. The main consumer of N-PEG-2400 is a Swiss chemical company specialised in concrete mixtures that has plants in Asia, Europe and America.
First fire of gas turbines at CCTG-TPP
Another milestone took place at Nizhnekamskneftekhim PJSC in the second quarter of 2021 — the first fire of the first and second gas turbines. This event became one of the key moments during the start-up and commissioning at the CCGT-TPP. The 495 MW power plant is one of the most ambitious projects of the company.
Nizhnekamskneftekhim’s new 495 MW gas turbine will become a reliable energy source for both operating and new petrochemical plants.
“The first fire of the gas turbine No. 1 reaching 1,000 rotations a minute took place at the CCGT-TPP on 11 June. A big job preceded this: hydro testing, washing of waste gas boilers, chemical washing of boilers, hydraulic and air tests of pipelines of different systems as well as testing of the PAS,” said Director of the CCGT-TPP Directorate, which is built at Nizhnekamskneftekhim PJSC, Almaz Mukhametzyanov.
A month after the fire of the first gas turbine, the plant’s specialists launched the second turbine. It is planned to synchronise the first and second gas turbines.
At the same time, a set of start-up and commissioning works of main and auxiliary equipment continues at the CCGT-TPP: the testing of emergency power supply protection system, gas compressor, fire-fighting system, auxiliary cooling system of the main building, fuel gas system, main water system, condensate removal system, boiler feed water and booster compression station. Nowadays the CCGT-TPP is hiring staff. A total of 94 new jobs have been created. The plant is already 63% staffed.
Implementation of powerful EP-600 complex is full steam
A considerable job has been done in 2021 to integrate the new EP-600 ethylene complex into the existing infrastructure of Nizhnekamskneftekhim PJSC. The complex is going to process nearly 1,8 million tonnes of naphtha a year. It is planned to made 600,000 tonnes of ethylene, 273,000 tonnes of polypropylene, 249,000 tonnes of benzene, 88,000 tonnes of butadiene from this feedstock.
The ambitious project is implemented with the latest eco-friendly technologies. The ethylene complex is going to become a driver to create and develop numerous plants to manufacture end products in Tatarstan and Russia that will use polymers manufactured in the complex’s plants. This completely complies with an import substitution programme fulfilled at federal level.
Construction works are keeping to the schedule. Equipment is delivered by all types of transport. A 150-metre flare will be the highest point of the complex. Its local treatment facilities that will treat process water and return it to the process are the key peculiarity of the complex. Also, the production will use a smokeless combustion flare and an incinerator to bury heavy residues. Such organisation of the manufacturing process will bring a significant economic benefit and minimise the environmental impact.
Over 600 jobs are going to be created in the new complex. Engineers have already been hired. Field personnel are going to be employed in the second half of the year — operators, machinists, metalworkers. The main focus will be on specialists who are already working at Nizhnekamskneftekhim PJSC. The doors are open for graduates of Nizhnekamsk educational establishments too — they can find a job at the EP-600 after an internship in the operating ethylene plant and learning basic skills.
Fifth environmental programme is adopted
The fifth environmental programme from 2021 to 2025 has been adopted at Nizhnekamskneftekhim this year. The company is going to allocate more than 12 billion rubles for its implementation, which is 1,5 times more than the previous one.
“The fifth environmental programme has bigger financing and a longer list of works than previous ones. Its value is over 12 billion rubles. Scheduled investments in environmental measures will allow increasing the effectiveness of the company in protection and careful attitude to the environment. I particularly mean the optimisation of water consumption and further reduction of emissions into the atmosphere, which already comply with the strictest international norms and requirements at Nizhnekamskneftekhim PJSC. As a socially oriented enterprise, Nizhnekamskneftekhim makes correct steps to improve the citizens’ lives,” noted Director General of Nizhnekamskneftekhim PJSC Ayrat Safin.
Year after year, the enterprise demonstrates great results of a large-scale environmental protection job. As a result of the introduction of environmental programmes from 2001 to 2020, commodity output in the enterprise rose 1,8 times, moreover, gross emissions of polluting substances reduced 2,8 times. During the fourth environmental programme, which lasted from 2014 to 2020, 490 environmental measures for a total of 7,96 billion rubles of investments were taken.
“The adopted fifth environmental programme from 2021 to 2025 is a component of the activity of TAIF Group in sustainable development, which includes process safety, occupational safety, social activity. We should say that this environmental programme is just a small part of the activity Nizhnekamskneftekhim does in environmental protection. This refers not only to the measures in environmental protection, a series of areas of production of an eco-friendly product, rubbers for green tyres, a reduction in the carbon footprint in our products can also be cited here. Therefore all this job pleases both me as a member of the board of directors of Nizhnekamskneftekhim PJSC and my colleagues. It is a systemic work organised at Nizhnekamskneftekhim for the company’s sustainable development. This inspires hope that besides production, economic results, the citizens, the workers’ quality of life will also improve,” said Vice Director General of TAIF JSC in Energy and Information Technologies, Board Member of Nizhnekamskneftekhim Ruslan Gizzatullin.
Care about staff
Nizhnekamskneftekhim PJSC cares about workers. The company’s collective agreement was first in the competition The Best Collective Agreement in 2020 among enterprises of the Tatarstan petrochemical complex.
In January 2021, a general conference of the staff took place at the company’s headquarters where the results of the collective agreement were summarised from 2018 to 2020 and a new document for the next three years was adopted.
The new collective agreement signed from 2021 to 2023 conserved all benefits and payouts that the previous document had.
The petrochemists’ accomplishments are noticed outside Tatarstan too. In the first half of 2021, Nizhnekamskneftekhim became a winner in HR Efficacy and Automation nomination in 100 Best Enterprises and Organisations of Russia contest. Also, the Nizhnekamskneftekhim staff was awarded a letter of commendation of the Tatarstan Ministry of Labour, Employment and Social Protection for fruitful cooperation and active involvement in measures designed to ease the tension in the labour market of the Republic of Tatarstan.
The coronavirus pandemic illustrated that Nizhnekamskneftekhim PJSC knows how to perform the toughest tasks it is set. The company has the necessary resources to achieve strategic goals. Thanks to highly effective production, vertical integration and client orientation, the enterprise continues its stable development.
“The implementation of large-scale investment projects, new petrochemical markets are ahead. Thanks to the coordinated work of the staff, its competence and professionalism, we will realise the targets. Joint efforts will allow improving economic indicators of our enterprise’s activity and conserve a high level of social guarantees,” Director General of Nizhnekamskneftekhim PJSC Ayrat Safin is convinced.