Nizhnekamskneftekhim increases revenue and profit in first half of year

Saving positive dynamics

According to published data, the revenue of Nizhnekamskneftekhim PJSC in the first half of 2021 reached 118,2 billion rubles, which is 51,1bn more than during the analogous period in 2020. Gross profit was over 38 billion rubles, which is above the number in the first half of 2020 (16,5 billion rubles). Sales revenue rose to 29,1 billion rubles against 9,4 billion in 2020. Net profit from January to June amounted to 24,9 billion rubles against 2,9 billion rubles in the first half of 2020. Taxes paid to all budgets was 9,3 billion rubles.

NKNK’s non-current assets increased by 19,9 billion compared to late December 2020 and reached 220,9 billion rubles. Positive dynamics were seen in working capital too. Compared to last December, this indicator rose by 7,8 billion and is equal to 69,3 billion rubles.

We should remind you that in the first quarter of the year, the petrochemical giant also demonstrated a record revenue. 54,9 billion rubles of revenue were earned from January to March 2021, which is above last year’s level by 16,8 billion rubles.

In general revenue of Nizhnekamskneftekhim PJSC by Russian Accounting Standards in the first half of 2021 augmented 1,8 times compared to last year’s analogous period, to 118,2 billion rubles.

Expertsmarket outlook

As experts note, the positive financial results of Nizhnekamskneftekhim PJSC were achieved thanks to a favourable economic situation in world markets and growing production amid recovering demand for petrochemicals and a wider range of products.

“The reason for such significant growth of indicators is obvious. If the first half of the last year was noted for a fall in demand and prices for both synthetic rubbers and plastics, prices skyrocketed in the first half of 2021. Plastics and rubbers approximately doubled over this time. Amid stable production output, manufacturers’ revenue notably increased,” says Alexey Kalachev, an analyst of FINAM FG.

In 2021, Nizhnekamskneftekhim PJSC started to produce a new type of products — solution butadiene-styrene rubber (SSBR) with a capacity of 60,000 a year and styrene-butadiene-styrene thermoplastic elastomer.

SSBR production is a strategic project of the company. The project’s active phase coincided with the introduction of stringent restrictive measures because of the coronavirus pandemic. Nevertheless, all construction works were done fully.

“Nizhnekamskneftekhim implements a large-scale investment programme thanks to which the enterprise will regularly expand production in the foreseeable future. For instance, a new rubber plant will be put into operation in 2021,” says Filipp Muradyan, director of Expert RA group of corporate ratings.

Solution butadiene-styrene rubber produced by the petrochemists has attractive features for tyre manufacturers. The use of SSBR in tyre production allows expanding its service, providing a better grip with the wet, icy road and lowering fuel consumption. Also, SSBR can be used in the production of various rubber goods.

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 of TPE. 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.

Also, the mass production of a new SKD-77 rubber brand and the start of the production of high molecular oxyethylated N-PEG-2400, which was successfully tested by consumers in the production of superplasticisers of fifth-generation concrete mixtures, are among the latest accomplishments. A considerable job has been done in 2021 to integrate the new EP-600 ethylene complex into the existing infrastructure of Nizhnekamskneftekhim PJSC.

Affiliate report

Liliya Yegorova, Lyutsia Kashapova