TAIF JSC discusses its performance in 9 months in 2023
An expanded board meeting of TAIF JSC is held at the headquarters of TAIF Group
An expanded board meeting of TAIF JSC where the performance in 9 months of 2023 is preliminarily summed up and results of 2022 are concluded took place yesterday, on 4 October 2023. TAIF JSC shareholders, TAIF JSC board members, vice board chairpeople and heads of TAIF JSC subdivisions as well as managers of subsidiaries participated in the meeting. Read about the first results announced at the meeting in Realnoe Vremya’s report.
Year of dramatic changes
Last 2022 was a year of dramatic changes in everything: from the global order to many people’s everyday lives. Sanctions have been falling as avalanche month after month since the beginning of the year covering almost all the sectors, economy and life by the end of the year. The whole world economy and global markets shifted to a state of great uncertainty and turbulence.
Existing enterprises of TAIF Group as well as those united between SIBUR Holding PJSC and TAIF in October 2021 quickly, in a very organised fashion and consistency managed to successfully adapt to current economic conditions. Business processes and management approaches were transformed, efficiency of production processes and social stability in enterprises of TAIF Group were provided. The focus on goals and tasks, mobilisation of all energy and resources allowed finishing the year with results surpassing commitments made in TAIF Group enterprises’ approved plans.
The total income of TAIF Group and companies united with SIBUR Holding PJSC in 2022 reached over 1.1 trillion rubles, of which 601 billion rubles are TAIF Group’s incomes.
89 billion rubles of tax and non-tax payments were made by TAIF Group (Editor’s note: together with enterprises of the united company) to all budget levels in 2022 where 46 billion rubles belong to TAIF Group companies. It is 1.5 times more than a year earlier.
All TAIF Group companies transferred 15 billion rubles to the budget of the Republic of Tatarstan in 2022.
TAIF-NK JSC: 25 years is the age of development
In June 2023, TAIF-NK JSC celebrated its 25th jubilee.
“We can note for the whole oil processing industry that 2022 was unexpectedly successful. It might seem the geopolitical situation is so tense, however, oil processing in the world is in demand,” Director General of TAIF-NK JSC Maxim Novikov told Realnoe Vremya in one of the interviews.
Most large-scale investment projects of TAIF Group including the Heavy Residues High Conversion Complex were successfully completed launching the production capacities as early as 2021. However, the work on expanding the capacities goes on. The processes aim to strengthen the company’s leadership in oil feedstock conversion rate and recovery of light high-quality oil products.
According to TAIF-NK JSC, with 87,4% average light oil product recovery per tonne in 2022, the company confidently joined Russian leaders in efficiency — in the world’s top 20 most technological oil refineries in the Nelson Complexity Index, with over 8 million tonnes of oil and gas feedstock procession a year.
In some months in 2022, this indicator reached 92.7%. The installed number TAIF-NK intends to reach is 98.2%. The average light oil product recovery indicator in oil refineries of the Russian Federation (according to InfoTEK-Consult in 2021) is around 64.2%.
Today light petrochemicals account for the main amount of products made at TAIF-NK JSC. This also includes a completely new product — winter diesel fuel. Also, the company is ready to make and supply big amounts of its improved jet fuel of Tatarstan whose performance characteristics surpass state quality standards. In existing dark petrochemical production facilities too — bitumen needed for the growing pace of road construction.
Nowadays TAIF-NK JSC is completing shutdown repair works. Finished touches are made at the Heavy Residues High Conversion Complex — it will reach its full capacity in October. In general the performance of the complex in 9 months of 2023 promises to be not worse than the results in 2022.
Most motor fuel produced by TAIF-NK JSC directly goes to TAIF Group’s signature petrol station — TAIF-NK AZS (Editor’s note: one of the biggest in the republic and the Volga Region). And another novelty — branded ECO RON92-K5 petrol with improved characteristics allowing reducing consumption and environmental impact, increase engine KPI and the lifespan of the car’s fuel system — is gaining more popularity here. According to TAIF-NK AZS, car owners highly appreciated the new product and demand for it is going up. As of late September 2023, the share of ECO fuel in the total amount of RON92 petrol sales during the first autumn month was around 10%: Tatarstan residents filled their tanks with nearly 2 million litres of the branded fuel.
The company notes that TAIF Group’s oil and gas processing complex development strategy is based on the introduction of the latest technologies in the production allowing achieving the best possible results even in heavy oil refining. TAIF Group’s experience and knowledge in combined thermal heavy residue cracking, new competencies obtained from their own production and scientific research can be echoed in oil refineries that are rich in high-sulphur heavy and superheavy oil reserves in Russia.
Unique technologies used at TAIF-NK JSC provide the lowest prime cost of processing of such oils and the finest processing of heavy hydrocarbons into light oil products. TAIF Group’s project on the construction of a unit to produce tar and vacuum gas oil from processing residues in the Heavy Residues High Conversion Complex, unique material using in metallurgical factories, is in its active phase.
TAIF-NK AZS: growth in all the areas
TAIF Group’s signature petrol station chain — TAIF-NK AZS — is one the biggest in Tatarstan and the Volga region selling high-quality and sought-after motor fuel directly from the producer has 241 petrol stations nowadays, including 33 facilities providing both motor fuel and liquefied petroleum gas filling services.
After a decline in motor fuel sale during the novel coronavirus infection pandemic, the petrol station chain has been demonstrating stable growth since 2021: +6% in sales in 2021 compared to 2020, +4% in 2022 compared to 2021. Since early 2023, retail motor fuel sales have also demonstrated stable growth. The total amount of motor fuel and NPG sold by TAIF-NK AZS has significantly surpassed results during the same period in 2022.
The work on the modernisation of the chain designed to bring all the stations into one style and raise the level of client orientation. 67 petrol stations were updated from 2019 to 2022. Since early 2023, 10 petrols stations have been renovated, works are underway at another 28 stations.
Most petrol stations are equipped with shops and mini-stores where anybody can buy not only signature TAIF Lubricants motor oils but also beverages, road essentials as well as freshly baked pastry from a restaurant of another component of TAIF Group — Pyramid Culture and Leisure Complex.
TAIF-SM: unique in Russia
The production that kicked off in November 2020 managed to not only achieve a success within a short period of time but also become one of the leading producers of a big range of lubricants in Russia. The company is one of the world’s few and Russian market’s unique company to be bale to create and offer a wide range of high-quality, fully synthetic oils based on polyalphaolefins.
In December 2022, in a debut in a regional and federal quality competitions, TAIF-SM’s three products at once — TAIF VIVACE passenger motor fuel, TAIF INTRA heavy commercial vehicle oil and its basic polyalphaolefin oil — became laureates and medallists. Now the company is actively participating in 2023 quality contests and, as Realnoe Vremya was told by TAIF-SM itself, this time the application is much bigger than a year ago.
In September 2023, TAIF-SM participated in the exhibition of two international forums at once for the first time: TatOilExpo-2023 and RUSCHI-2023. Tatarstan Rais Rustam Minnikhanov was introduced the company’s products, guests and exhibition visitors were quite interested.
The producer is well known across Russia and in neighbouring and remote countries as Taif Lubricants.
The high quality of lubricants by Taif Lubricants is recognised by the world’s leading car producers. Taif Lubricants oils for passenger and commercial vehicles are licensed by the world’s leading car manufacturers: Mercedes-Benz, Volvo, Renault, VAG and MAN as well as international R&D centres, which confirms the compliance of the products with modern international standards and requirements. The high quality of industrial oils by TAIF-SM and their compliance with the strictest international norms are confirmed by such giants as General Electric and Siemens.
The assortment of products made by the company already has over 270 names in all the segments. This number constantly grows. Thanks to its own state-of-the-art R&D Centre, the company is ready to design and offer consumers lubricants for any purposes and operational conditions.
An extensive distribution chain consisting of over 30 companies covers the whole territory of Russia allowing quickly responding to consumers’ requests regarding engineering, production and supply of lubricants the market needs. The company’s foreign partners actively promote products of the Tatarstan producer to CIS and Asian markets.
Since 2023, Taif Lubricants has become the official partner of one of the leading teams in Russia’s motor sport — TAIFMOTORSPORT.
In 2022, Kazan Silicate Wall Material Factory and Keramika-Sintez companies altogether produced over 100 million pieces of silicate and ceramic bricks with over 20 names. For reference, 71% of all silicate bricks made in Tatarstan and 23% of ceramic bricks are held by these two enterprises that are part of TAIF Group.
TAIF-ST that has been successfully operating in the republic’s construction market for over 20 years now is especially in high demand in industrial construction. Enterprises of TAIF Group and SIBUR were key clients in 2022: TAIF-NK, TGC-16, Nizhnekamskneftekhim, Kazanorgsintez and others.
In 2023, TAIF Group got an energy unit: 100% of TGC-16 shares were purchased from SIBUR-RT. In 9 months of 2023, the generating company produced over 6.4 billion kWh of electrical energy, around 13.1 million Gcal thermal energy and heat were generated.
To implement all projects and plans as soon as possible, one of the biggest generating companies of Tatarstan will develop under TAIF’s wing. Large-scale capacity renovation is now underway in a state programme of competition project selection for modernisation. The first turbines that joined the programme will be launched as early as 2025, another two will generate energy in 2026, another one will in 2027 and the last one in 2028. The company considers the possibility of participating in further state generating equipment modernisation programmes too.
People as priority
A responsible business is one of the priorities in the activity of TAIF Group in general. The company diligently meets all commitments in payments made to all budget levels and extrabudgetary funds. Environmentally friendly tasks and projects aimed to improve the population’s quality of life, including workers of TAIF Group’s enterprises are mandatorily taken account when making business decisions.
Last year, TAIF continued providing support and assistance to important social projects: health care, sport and healthy lifestyle, education and childhood, conservation of the republic’s cultural and historical heritage. This works has continued in 2023 too.
TAIF Group sponsors Snow Leopard Wings parabasketball club and Tulpax 3x3 women’s basketball club, Dynamo-Kazan ice hockey club, TAIF and TAIFMOTORSPORT racing teams, providing sports venues with support and develops amateur sport and promotes a healthy lifestyle.
Human capital is the main asset for any enterprise of TAIF Group. TAIF Group enterprises provide check-ups, constantly monitor their employees’ health, organise transportation of their workers to the enterprise and back, guarantee quality and affordable meals during the day, decent salaries. Also, great attention is paid to create and develop a system of staff training and provide opportunities for specialists’ professional growth.
Thanks to the constant work on process safety and occupation safety, there wasn’t any incident in TAIF Group enterprises last year, there hasn’t been any in 2023 either.
TAIF Group enterprises have bigger tasks, new projects and accomplishments ahead. The era of changes opens wide possibilities for those who are ready for new challenges.