Nizhnekamskneftekhim boosts net profit 50% in 2014
KAZAN. March 2 (Interfax) - Nizhnekamskneftekhim , a major Russian producer of synthetic rubber and plastics, boosted net profit to Russian Accounting Standards (RAS) 50% in 2014 to 9.269 billion rubles, the company said in a report.
Sales revenue grew 10.9% to 132.893 billion rubles, including 66.767 billion rubles in Russia, up 16.1%, and 62.901 billion rubles abroad, up 5%.
Net profit fell 22% year-on-year in January-September 2014, so earnings must have been 4.156 billion rubles in Q4 2014, compared with losses of 449 million rubles in the same period of 2013.
The company said in a report for Q3 that as prices trended down in the international commodity markets, the high exchange rate of foreign currencies against the ruble would offset the impact of low prices in the national currency. The company also said it thought a low ruble would support high prices and good demand inside Russia for Russian products, which would be more profitable to buy than more expensive imported products.
The company said in the March 2 report that cost of sales rose 11.9% last year to 109.811 billion rubles, gross profit - 6.5% to 23.082 billion rubles, operating profit - 6.7% to 13.278 billion rubles and pre-tax profit - 36.4% to 11.689 billion rubles.
Receivables fell 7.7% last year to 9.31 billion rubles and payables fell 15.4% to 10.103 billion rubles.
Long-term borrowing grew one-third to 1.547 billion rubles and short-term borrowing rose 2.9% to 4.58 billion rubles.
CEO Azat Bikmurzin has said the company's most important task in 2014 was maintaining key positions on foreign and domestic markets." "The measures taken allowed for output volumes and product sales to grow, sales profit of over 133 billion rubles to be reached, and net profit of over 9 billion rubles to be posted. The production plan was carried out at 101%, while the output of marketable products totaled 102.7% of 2013 in constant prices," he said.
Exports accounted for around 47% of overall sales. The main portion of export sales (75%) were in synthetic rubbers, as before, while plastics comprised 12% and other products - 13%.
Nizhnekamskneftekhim is one of the biggest manufacturers of synthetic rubbers in the world and one of Russia's biggest plastics manufacturers with over 120 types of products. Nizhnekamskneftekhim exports to 51 countries. Most exports go to countries in Europe, the Americas and Asia. Around 50% of its products are exported.
Svyazinvestneftekhim owns 28.6% of the company's ordinary shares, or 25.2% of charter capital, and LLC Telecom Management, a OJSC TAIF subsidiary, owns 50.6% (44.5%).