Kazanorgsintez boosts RAS net profit 190% in 2014 to 6.1 bln rubles
KAZAN. Feb 26 (Interfax) - OJSC Kazanorgsintez boosted net profit under Russian Accounting Standards (RAS) 190% in 2014 to 6.112 billion rubles, the company said in its RAS report.
Revenue increased 18.1% to 54.483 billion rubles.
"This was achieved as a result of the deficit that formed on the polyethylene market, as well as the devaluation of the ruble, which led to an increase in prices for the group's products. A raw material deficit, however, led to a 12,700 tonne decrease in polyethylene production compared with the previous year. Overall, given the increase in prices compared with 2013, sales revenue was 8.394 billion rubles more," the report says.
The company boosted sales on the domestic market 30.2% last year to 45.491 billion rubles, while sales abroad contracted 19.8% to 8.992 billion rubles.
Cost of sales including commercial and administrative expenses grew 6.6% to 42.774 billion rubles, which largely stemmed from increased raw material costs due to higher prices.
Gross profit advanced 60% to 15.344 billion rubles, while profit from sales was up 90% at 11.709 billion rubles. Pre-tax profit increased 160% to 7.678 billion rubles.
Kazanorgsintez saw receivables double for the year to 1.257 billion rubles, while payables increased 70% to 5.826 billion rubles. The amount of long-term loans fell 33.7% to 10.971 billion rubles, while short-term loans grew 260% to 8.85 billion rubles. The sharp rise in short-term debt was connected with $100.8 million in Eurobonds that mature in March 2015, thus moving from long-term to short-term debt. This also stemmed from the increased cost of Eurobonds, partially due to the appreciation of foreign currency. There was a negative exchange rate difference of 2.227 billion rubles in 2014.
The company notes that it settled 1.892 billion rubles in debt owed to Sberbank last year. The debt was paid on time, and there were no advance payments. In addition, free cash was placed in deposits.
Rafinat Yarullin, who is the head of OJSC Tatneftekhiminvest-Holding, which coordinates the activities of the republic's oil and petrochemicals enterprises, was previously reported as saying that Kazanorgsintez maintained production at the level of 2013 in 2014. In addition, low-pressure polyethylene production grew to a change in Stavrolen's market share. Because of a drop in ethylene supplies, high-pressure polyethylene output fell.
Kazanorgsintez is one of the leading producers of polyethylene and polyethylene pipe in Russia, turning out over 170 types of chemical products. Telecom-Management, a wholly owned subsidiary of TAIF, owns a controlling stake in the company, and another 26.6% belongs to Svyazinvestneftekhim, which in turn belongs to the government of Tatarstan.