MOSCOW (MRC) - The revenue of Nizhnekamskneftekhim (NKNKH) in January-March set a new record of 54.9 billion rubles, according to BUSINESS Online.
The impressive results were achieved mainly due to the favorable situation on the world markets, and NKNK is forecast to have strong performance in the coming quarters already due to growing production amid recovery in demand for petrochemical products.
After the "covid" 2020, a number of economic sectors headed "north", recovering from a forced pause. Of the leading Tatarstan enterprises, it is worth highlighting, first of all, petrochemists, whose affairs after last year's fall are on the rise again. The revenue of the largest Russian manufacturer of synthetic rubbers Nizhnekamskneftekhim in the first quarter of 2020 increased by 44% to a record 54.9 billion rubles, follows from the statements of the joint-stock company.
Last year, 39% of the plant's proceeds came from synthetic rubbers, 33% - from plastics, 26% - from other petrochemical products and about 2% - from other products.
An extremely favorable situation for NKNK in the first quarter developed in the plastics market. Thus, the average value of the PPI-ST index, which reflects prices for large-scale plastics, increased by 1.5 times: from 87 thousand rubles per ton in January-March 2020 to 130 thousand rubles per ton in January-March 2021. Among the main reasons are the recovery of the world economy, the rise in world prices for plastics.
As for the situation on the rubber market, the fight against the pandemic and widespread lockdowns affected it in two ways. On the one hand, the shutdown of a number of car factories and the decline in business activity reduced the demand for tires of all stripes. On the other hand, there was an increased demand for rubber gloves and even a shortage of labor for the largest producer of natural rubber - Thailand.
In the first quarter of this year, the product line of NKNKh was supplemented with new thermoplastic elastomers, which are distinguished by their high strength and the possibility of repeated processing without harm to the environment. These materials are used for road paving, which improves the quality and durability of the asphalt. Also thermoplastic elastomer is used in the production of roofing materials.
In January, a new production of styrene-divinyl rubber (DSSK) was launched. The complex was built in 2019-2020.
NKNK's revenue growth was influenced not only by the recovery in demand for the company's products: synthetic rubbers, polymers, and other petrochemical products, but also by a significant rise in prices, especially in export markets. For example, prices for standard thermoplastics have almost doubled since the beginning of the year. A year ago, in the first quarter of 2020, there was a decline in the industry, while now it is on the rise. At the same time, domestic prices for raw materials and regulated tariffs for energy resources rose less noticeably.
The largest petrochemical holdings in Russia - SIBUR and TAIF - in April announced plans to combine their assets. Within the framework of the merger, a company will be created on the basis of SIBUR Holding, in which the current shareholders of TAIF PSC will receive a 15% stake in exchange for the transfer of a controlling stake in a group consisting of petrochemical and energy enterprises. The remaining stake in TAIF can be subsequently purchased by the merged company. The merged company of SIBUR and TAIF will include the parent company of the Tatarstan group, as well as two of its chemical plants and an energy company, including NKH and KOS.
According to the ICIS-MRC Price Report, Russian factories have reduced the cost of PS this month under pressure from external markets and the declining cost of raw materials. Nizhnekamskneftekhim has reduced the cost of the polymer by more than the rest of the plants.
PJSC "Nizhnekamskneftekhim" (NKNKH) is one of the largest Russian producers of petrochemical products. The production complex of the company includes ten factories of the main production and ten departments (railway transport, main ethylene pipelines, etc.). NKNKh produces over 120 types of chemical products, including synthetic rubber, polyethylene, polypropylene, polystyrene, surfactants. Nizhnekamskneftekhim is part of TAIF Group.