7 Dec 2016 11:11

Interfax publishes Fundamental Efficiency Rating for top 150 Russian cos

Interfax Group has published its annual Fundamental Efficiency Rating for Russian businesses, which is compiled by environmental and energy rating agency Interfax-ERA and includes the 150 largest Russian companies in the real sector of the economy.

In 2016 the top 150 companies are led by Antipinsky Oil Refinery, Russian Helicopters (MOEX: VERR), Gazprom Dobycha Urengoi, Irkut Corporation (MOEX: IRKT), Kamaz (MOEX: KMAZ), Lukoil Ukhtaneftepererabotka, IDGC Center and Volga (MOEX: MRKP), Sukhoi Company, United Aircraft Corporation (UAC) (MOEX: UNAC) and the Udmurtia branch of T Plus (MOEX: VTGK).

"We have been assessing the energy and environmental efficiency of Russian businesses for 16 years already. This is a unique source of data for monitoring the economy‘s actual degree of efficiency, measured in real rather than financial indicators," the director of Interfax-ERA, Alexander Martynov said.

The "rating of the energy and environmental efficiency of the largest Russian companies can be seen as the information foundation for the upcoming Year of the Environment," Martynov said.

Companies in the rating are ranked according to five criteria: energy resource efficiency (energy and resource expenditure per unit of output); technological efficiency (consumption of resources and generation of waste per unit of work); ecosystem efficiency (level of pollution and environmental impact by a company‘s enterprises that can be assimilated by the local natural ecosystems); change in efficiency (from 2005 to 2016); transparency (level of disclosure about energy and resource consumption and environmental impact).

Companies are ranked for each of these criteria and the final ranking is determined according to the sum of their places in the five separate rankings.

The ranking of the top 150 includes companies and enterprises with revenue of more than 60 billion rubles. In addition to major holding companies, the list includes their subsidiaries, branches or separate regional divisions if they generated more than 60 billion rubles for the parent company and this amounted to less than half of the group‘s business.

The composite indicators of changes in the energy and technological efficiency for companies in different sectors reflect the fact that the biggest and steadiest decline in efficiency since 2005 has been in the coal sector, the analytical report for the rating states. The degree of efficiency has fallen by 0.98% annually at open-pit mines and 1.60% at underground mines.

As a result, with every year a tonne of coal requires more direct energy consumption and produces more waste. Only coal washing has seen a positive change in efficiency, amounting to 0.86%, after a period of decline.

There are similar and only slightly less troubling trends in a number of other resource industries, including logging, where efficiency has dropped by 0.84% per year, and nonferrous metals mining, where efficiency has fallen 0.10% per year.

Oil production is again seeing positive trends after a decline in efficiency, and showing 0.45% average annual growth, though the situation remains unsteady in drilling and oilfield infrastructure construction, which declined 0.52%. In gas production, the growth of efficiency slowed to 2.60% per year from 4.3% in the previous year.

In the manufacturing sector, real energy and technological efficiency grew almost across the board, including 1.66% per year in the chemical and petrochemical industry; 1.0% in machine building; 1.18% in instrument making; 1.61% in the aircraft industry; and 2.68% in shipbuilding. Only production of railway equipment saw efficiency decline since 2005, by an annual average of 0.86%.

Changes in efficiency in transport varied by sector. The degree of efficiency in air transport grew by a strong 1.21% per year, automobile transport saw slightly weaker growth of 0.84%, and water transport increased efficiency by less than 0.2%.