MOSCOW (MRC) - The net profit of Kazanorgsintez (KOS, part of the TAIF group) in the first quarter grew 3.2 times to Rb6.2 bn, BUSINESS Online reports.
Kazanorgsintez's revenue in the first quarter of 2021 increased by 49% to Rb24.2 bn, follows from the company's quarterly report. This result became a record for the first quarter, leaving behind the previous maximum of Rb20.1 bn, recorded in 2016.
The company's financial performance is expected to exceed 2020 and 2019 results this year. In their opinion, the market situation favors the largest producer of low-density polyethylene.
As for the key driver, the situation on the plastics market, it really worked out well for KOS. Thus, the average value of the PPI-ST index, which reflects prices for large-capacity plastics, increased by 1.5 times: from 87 thousand rubles per ton in January-March 2020 to Rb130,000 per tonne in January-March 2021. At the same time, sales profit increased 4.2 times to almost Rb8 bn.
The contribution of Kazanorgsintez's production to the growth of its revenue was small. Despite the increase in receipts for all main products from the KOS line, their dynamics were uneven. Thus, the highest growth was shown by polycarbonates - proceeds from their sale doubled to almost 5 billion rubles. Revenue became a record for the direction, leaving Rb3.3 bn behind the sample in January - March 2018. Unlike other products, polycarbonates showed an increase in 2020, by 11% to Rb8.8 bn.
Further, revenue from the sale of high-density polyethylene (LDPE) increased by 71% to Rb6 bn. Revenues from the product that brings the most revenue to KOS, low-density polyethylene (HDPE), increased by 26% to Rb10 bn.
Earlier it was reported that Kazanorgsintez plans to reconstruct reactor B at the plant for the production and processing of low-density polyethylene (HDPE).
As it became known earlier, the largest petrochemical holdings of 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.
It was also noted that the combined company of SIBUR and TAIF will include the parent company of the Tatarstan group, its two chemical plants and an energy company. On the part of TAIF, the following companies will join the merged company: TGK-16 JSC, Kazanorgsintez PJSC, Nizhnekamskneftekhim PJSC and TAIF JSC. The oil complex of TAIF-NK PSC is not included in the deal with SIBUR. The merger of SIBUR and TAIF will not affect the position of Kazanorgsintez (KOS); TAIF will remain its shareholder.
According to the ScanPlast report of MRC, Kazanorgsintez’s total HDPE production grew to 38,600 tonnes last month from 29,000 tonnes in April, with the increase in the output due to weaker linear low-density polyethylene (LLDPE) production.
Kazanorgsintez PJSC is one of the largest enterprises in the Russian Federation (TAIF Group of Companies). It produces 40% of all Russian polyethylene and is its largest exporter. Currently, PE, polycarbonate (PC), polyethylene pipes, phenol, acetone, bisphenol A are produced. KOS is the only Russian PC manufacturer. There are 170 types of products in total. The annual production volume is 1.6 mln tonnes. The enterprise is the largest Russian manufacturer of low-pressure polyethylene (HDPE) pipes. The annual capacity of HDPE production is 540,000 tonnes, and LDPE - 225,000 tonnes.