Rustam Minnikhanov: 'We have solutions for every eventuality'
Today after making conclusions at the meeting of the shareholders of TAIF PJSC, the parent company of the holding dedicating to petroleum refining and petrochemistry, a press conference was organized. It was told about what sectors of the republic the instability of the economy have the impact on, a development programme of the petrochemical complex, which was approved a week ago, and TAIF shareholders decided not to pay stock dividends according to the results of 2014. Our correspondent of Realnoe Vremya heard them out and asked questions too.
Two groups of companies form the basis of the economy of Tatarstan
At the annual meeting of the shareholders of TAIF PJSC, the conclusions of the summary of the work of the GC and joint-stock company for last year were drawn, and a new board of directors consisting of 10 people of the head company was elected. Rustem Sulteyev was chosen as the chairman again. Rustam Minnikhanov, Acting President of Tatarstan, participated at the meeting as well.
Albert Shigabutdinov, the director general of TAIF PJSC, presented the main report about the activity of the Group of Companies and declared that for TAIF 2014 was a year of challenges and hard labour, the period of realization of strategically important programmes and projects. In spite of the unfavourable geopolitical situation and acute economic crisis, the companies of the TAIF Group achieved positive results and added new impetus to their work on the creation of up-to-date and high-technology productions.
Rustam Minnikhanov heard out all results of the financial period and said that there two groups forming the basis of the economy of the republic: Tatneft and TAIF.
'We talk about 470bn rubles of revenue, 83bn rubles in taxes, 43,000 workers that have a well-paid job and good perspectives. Almost 40bn rubles were spent on investments and 2,6bn on social and charity projects. Everything proves that TAIF is the leading GC with no mention about what share it have on the market in Russia and Europe. We're the leading player in the production of rubber and plastic in Russia. Everything has formed during recent years owing to the programmes of the development of the petrochemical complex.'
Year of anniversary
At the press conference followed after the meeting with participation of Acting President of Tatarstan Rustam Minnikhanov, the director general of TAIF Albert Shigabutdinov and chairman of TAIF PJSC Rustem Sulteyev the anniversary was mentioned. Rustam Minnikhanov was asked to appreciate the contribution of the company to the economy of the republic.
Rustam Minnikhanov: 'Our goal is to continue and realize further projects. For instance, the projects related to the ethylene complex of NKNKH. Our Group of Companies is able to complete these ambitious tasks'
Giving an answer, Acting President of Tatarstan mentioned that on the recent Security Council on Development of the Petrochemical Complex it became obvious that many indicators of the republic increased by 2,3 times and even fivefold. 'It is the reflection of the work of the Group of Companies. I talk about the GC on account of the fact that TAIF is an administrating and accumulating company. It's impossible to carry out these tasks without consolidation of resources and development strategies. And our goal is to continue and realize further projects. For instance, the projects related to the ethylene complex of NKNKH. Our Group of Companies is able to carry out these ambitious tasks,' Rustam Minnikhanov declared.
'We have naphtha in case we don't have gas'
'Realnoe Vremya' asked for dates of the signing of a contract of syndicated loan, which is necessary to terminate the construction of the Heavy Residues Deep Conversion Complex in TAIF-NK that costs $800m. Albert Shigabutdinov explained that mainly it's a commercial information. 'The only thing I can say is that we have many bank offers at 5,5% for some 5 years. The request for tender is launched, and we're working with shareholders, who are to be in agreement. I suppose there is nothing to add regarding the financing of TAIF-NK, the agreement will be signed soon,' Albert Shigabutdinov said.
The following question of 'Realnoe Vremya' was about the solution of the problem of the financing of the Ethylene Complex in NKNKH and the sum of the investment. The director general said that the total cost was about $9bn, but they needed $4bn for the first train (with a capacity of 600,000 tonnes). 'Nowadays we solved all technical problems. We deal with financing, and soon we're going out to the building area,' Albert Shigabutdinov noted.
At the press conference of the GC, the business of whom is based on petroleum refining and petrochemistry, we mentioned the Security Council that was held last week when the fourth programme on Development of Petrochemical Complex of Tatarstan was approved. But the question is why there is no information about financing sources and sources of raw materials. 'The wishes are demonstrated but possibilities – no.' Rustam Minnikhanov noticed with a smile that probably he was 'the right person' to answer this question. 'Yes, the problem of raw material exists. The problem mainly is that the way of the transportation doesn't fit us. It's very expensive to use wagons. We need other new ways of transportation of raw material. This process began, the variants are under consideration. So, don't think that the programme was approved without the elaboration of possibilities. There are more efficient ways of transportation, which need to be revised. Moreover, we have naphtha in case we don't have enough gas. We launched the second Petrochemical Factory with a capacity of 6 million tonnes. We have solutions for every eventuality,' Rustam Minnikhanov stated.
The following question mentioned the information, which appeared recently, about the Federal Antimonopoly Service of Russia that approved the request of the Telecom-Management Private Limited Company (a 100% subsidiary of TAIF PJSC) on the purchase of 59,85% of voting shares of the Tatneftproduct Holding Company PJSC. Albert Shigabutdinov specified that there wass an offer to buy a controlling block of shares. 'We need to have a permission of the Antimonopoly Committee to continue the negotiations. We haven't decided whether to buy or not. We'll come to an agreement and then let you know,' said Albert Shigabutdinov.
No dividends will be paid
The next question was addressed to Rustem Sulteyev, the re-elected chairman of the board of directors of the parent company. The question was about the amount of paid dividends, and whether they would be paid at all. According to the results of 2014, it turned out that the shareholders wouldn't get paid the share dividends. This decision was accepted on the grounds that the large-scale construction is being carried out in TAIF-NK which requires big investments. 'Today the cost of the project is $1,6bn. The decision on the dividends was made on the account of the unfavourable situation in the world markets and low insolvency,' Rustem Sulteyev declared.
Journalists were also interested in what hopes TAIF have for this year after the highest indicators in 2014 and the influence of the crisis. Albert Shigabutdinov answered that, 'Right, this period is difficult. Last year the results could be even better if the situation had not changed like that. But a journey of a thousand miles begins with a single step. As for the plans and hopes, the President of Tatarstan sets us goals that a priori could yield good indicators. So this year is going to be better than the previous one.'
At the end of the press conference, there was a question of how TAIF achieved good results last year, during difficult times, its secret and what they staked on. 'Who said that it was a difficult time?' asked Acting President of the republic. After a pause, he continued, 'There are difficulties, but I think our petroleum industry is fine, the petrochemistry is growing, as you can see. There are some difficulties in the automotive industry, in the construction complex, but they are temporary. And our petrochemical complexes are in order. We have competitive products. We have both competitive prices and quality. This is the work of the company, they are ready to face any challenges. If we hadn't started the modernization, investing 40bn rubles last year only in order to be competitive on the market, the result would have showed other figures. It is the key to success. And if we stop, we'll lose even positions on the market we're taking right now. This is why we need to develop and find new markets.' And the press conference ended on this upbeat note.
