Growth against a background of the crisis: TAIF Group of Companies draws conclusions of 2014
Having increased balanced revenue by 5,8%, the holding paid 4,1 billion rubles more in tax
Today TAIF Group of Companies published its annual report for 2014. The analysis of its economic indicators demonstrates that one of the largest holdings of Russia managed to minimize tendencies of the crisis and keep the pace of development generating 469bn rubles of the total revenue. A correspondent of Realnoe Vremya studied what other results they achieved.
On the financial horizon
The data of the document illustrate that for the fiscal year the principal financial and economic results of the activity of the Group gained 469bn rubles, and EBITDA indicators show nearly 68bn rubles and, according to the net profit, – about 45bn rubles. What is more, in comparison with the previous year, the revenue increased by 26,3bn rubles and made 12,5% out of the balanced revenue of the republic. It demonstrates that the development of the holding directly influences the improvement of the economic state of Tatarstan. Moreover, TAIF is one of the largest taxpayers of the republic. So, last year the holding ramped up the volume of joint tax payment and levies paid to different budgets levels equal to 83m rubles due to continuously growing indicators. It is 4,1bn rubles more in comparison with last year's result. And 14,6bn rubles were channeled to the consolidated budget of Tatarstan that made more than 8% out of tax revenue budget of Tatarstan – 172,8bn rubles.
The revenue from product realization increased by 7% or 37,7bn rubles in comparison with 2013 due to the growth of volumes of industrial production in the enterprises of the Group for the fiscal year. Sale proceedings of the production of the GC, according to the results of 2014, is 582bn rubles, and 77% of them belong to oil and gas refining, petrochemical enterprises and power industry of TAIF Group.
As for economic and financial indicators of the parent company, for 2014 proceeds of TAIF PJSC were 83,1bn rubles, it's 2,4bn rubles more, compared to the last year's result. There were no significant changes in the composition of revenues. Proceeds from turnover-related transactions, leasing and proceeds from warranty services continue forming the bulk as it was earlier. The head company pays a special attention to the fulfilment of obligations with respect to the budget. The total sum of tax payments for 2014 was 2,9bn rubles, and 1,6bn rubles were transferred to the consolidated budget of the Republic of Tatarstan.
Integration of effective enterprises
This year TAIF celebrates its anniversary: Kazan Scientific Research Centre of Foreign Trade PLC was created on 17 September 25 years ago, on the basis of which on 11 August 1995 TAIF PJSC appeared. For these 20 years, the investments of the Group in the main funds were over 345bn rubles, proceeds – 3,184 trillion rubles, the enterprise transferred 1,1 trillion rubles to the development of the country, paid taxes and duties equal to 441bn rubles, and its social expenditures amounted to 146bn rubles.
Development of oil processing, chemistry, petrochemistry, and energy sector, strategically important spheres of the industry and the economy of the republic, are principal lines of the activity of the TAIF Group. Most take of general indicators of the Group belongs to the companies working in that sectors. So, subsidiaries and controlled companies of petrochemical and power complexes account for 76% in the structure of the revenue of TAIF. They also number 96,8% in general composition of investments of the holding.
The construction of the Heavy Residues Deep Conversion Complex at TAIF-NK is among the top projects of the Group. The ultimate goal of the construction is to erect an effective petroleum refining plant by 2017. Last year in November large-capacity equipment for the main technological object of the enterprise under construction was delivered and installed.
Nowadays TAIF follows two lines simultaneously: provides raw material for petrochemistry, produces fuel; its processing capacity of raw material is 8,34m tonnes per year. By the way, TAIF-NK took the 8th place among Russian petroleum refining factories of Russia and reached 74,5% that shows the oil conversion rate, the main indicator of the productive and technical efficiency of a company.
The demand for production of TAIF-NK is continuously growing. If last year 4,8m tonnes of petroleum products were exported, the results of 2014 demonstrate that the sales volume abroad made 5,3m tonnes. The programme on the retail chain of petrol stations with the brand of TAIF-NK continued developing. There are 38 petrol stations.
Last year the reliability augmentation of the electric power system of the industrial hub of Nizhnekamsk and Kazan was heavily emphasized. Territorial Generating Company-16 (TGC-16) signed an agreement on the modernization of the Kazan Combined Heat and Power Plant-3 (CHP Plant-3) on the basis of an up-to-date 388,6 MW gas turbine made by General Electric. The new installation will enable to double the generation of electric power in combined cycle mode. Consequently, the current deficit of electrical power in the energy area of Kazan will be reduced.
In addition, it's planned to keep the all-roundmodernization of the Nizhnekamsk CHP Plant-1: to replace the motor controller of feed pumps with turbine ones, reconstruct the chemical plant, and modernize the hall where the turbine equipment is situated. In general, the part of the heat capacity of power stations that belong to the GC was 43%.
In spite of the poor growth of the world economy, Nizhnekamskneftekhim, the giant of the sector, continued developing the output of the main products. So, the production increased by 2,3% in volume terms, while the revenue – by 10,9%. For example, last year Kazanorgsintez PJSC invested over 3,9bn rubles in the modernization of current productive capacities and construction of the new ones.
The companies of the TAIF Group deal with other sectors of the economy besides the top area of their activity: petroleum, petrochemistry and energy industry. These are construction, telecommunications, trade, services and investments, in which 19 companies are involved accounting for 112,7bn rubles of balanced proceeds.
Invariably important social issue
Undoubtedly, the holding is one the largest consumers of natural resources that influences the environment. This is why the company is always engaged in the sphere of ecological security. A good example of this is that total gross emissions of harmful substances to the atmosphere, volume of water consumption, and waste generation for 2014 were below the mark. Generally speaking, for the fiscal year, organizing ecological activities, the GC spent over 6bn rubles.
The Group of Companies sums up large industrial enterprises and can't ignore issues related to the occupational health and safety. In 2014, the Group of Companies appropriated 8bn rubles for the workplace health and safety. This enables to avoid serious incidents on factory floors excepting a fire in Gasoline Plant of TAIF-NK in March 2014.
Moreover, TAIF supports the elite sports. For 20 years FC Rubin, who twice won the Russian Premier League and once the Russian Cup, and Sintez Waterpolo Club, the owners of the LEN Trophy, champions of Russia who are two-time winners of the Russian Cup, became well known names in sport worldwide due to the financial support.
What is more, Russia is honourably represented both on the international stage and in Russian championships by famous sport teams like Dinamo-Kazan Field Hockey Club, Neftekhimik Hockey Club that plays in the KHL, TAIF Rally Team and MX-Autosport Rallycross teams, Reaktor Hockey Club that plays in the MHL, FC Neftekhimik by virtue of the support of the Group. According to the annual report, in 2014, more than 2bn rubles were channeled to support sport and active lifestyle by companies of the group. Furthermore, large enterprises of the republic traditionally make financial contributions to the organization of municipal celebrations: Victory Day, Republic Day, Sabantuy (Plough's feast) and professional celebrations. It would be impossible to hold these events without the financial support of the multi-sectoral holding. So, in 2014, TAIF GC expended 14,3bn rubles on social issues: 2,6bn of the sum were used in charity and sponsorship in order to help educational establishments, preschools and residential treatment centres. A big job is done by helping schools to get prepared for new school year.
TAIF unchangeably pursues the policy of social responsibility towards its workers and their families. For instance, the holding participates in the programme of social loan. As the data of the report show, 12,600 square metres were allocated to their workers last year. Approved by the President of the republic, the programme on housing workers of the companies of the Group who need dwellings till the end of 2016 is still realized. The total amount of flats is 6,100. By the way, within the scope of the realization of the programme there are many privileges for highly-skilled specialists. To take one example, an interest-free loan can be granted as a downpayment with a possibility of 'forgiveness' of a part of the debt and partial compensation of expenses concerning interest payments of the mortgage of the bank. Everything depends on specialist's conscientious work.
Financial results allow the holding to discharge its social obligations. The results systematically grow due to the intelligent management of its own capital. This, in turn, enables to accept investment projects under conditions of the unstable economy.
Photo: press centre of TAIF PJSC