KazanOrganichesky sintez : Kazanorgsintez summarizes 2020

26 April 2021

Kazanorgsintez summarizes 2020

Kazanorgsintez PJSC hosted its General Shareholders Meeting 'in absentia'. Shareholders were able to study materials concerning the Meeting, express their opinions on agenda items and send completed voting papers within statutory period.

The Company's performance results for 2020 are presented in its Annual Report.

The year of 2020 started with economic crisis in the industry. Lower than normal oil prices and feedstock prices associated therewith led to drop of global prices for polymers as well. After OPEC deal, raw material prices soared up resulting in feedstock deficiency for chemicals and petrochemicals sector. At the same time, COVID-19 pandemic posed a major setback to the economy. Against the background of OPEC crisis, this pandemic produced a cumulative effect to petrochemicals and oil and gas sector. Quarantine all over the world precluded polymers producers and processors from raising prices alongside with those for oil, oil products and LPG. Market revival did not start until the second half of the year.

Despite all of this, Kazanorgsintez PJSC achieved strong financial results. In 2020, revenue from commercial products sales amounted to RUB 62.8 billion, while net profit made RUB 8.6 billion.

In 2020, commercial output of Kazanorgsintez PJSC reached 1,012,000 tons; volume index made 98.8% on that of 2019.

Main share in revenues belongs to ethylene polymers (70%) and polycarbonates (16%). Products sold in the domestic market amounted to RUB 50.8 billion. The Company's exports reached RUB 12 billion. In 2020, Kazanorgsintez PJSC shipped its products to 35 countries worldwide. New markets for the

Company's export shipments in 2020 included Algeria, Morocco, Vietnam and Colombia. The Company prioritized its export shipments to countries offering higher contractual prices.

As a well-established practice, Kazanorgsintez PJSC pays great attention to issues of environment, industrial safety and occupational health. The Company applies its best efforts to maintain the environment and preserve it for full lives of generations to come by implementing a comprehensive approach to nature protection. The Company strictly monitors its total gross emission of harmful substances into the atmosphere, water consumption, pollutants discharge into water bodies, and waste generation. I 2020, volumes thereof were much lower than prescribed by standards. Current environmental costs for 2020 amounted to RUB 482 million (RUB 478 million in 2019). Total amount of expenses for environmental protection measures aimed at preventing adverse impact of the Company's production facilities on the environment amounted to RUB 234 million.

In spite of the economic crisis, Kazanorgsintez PJSC persisted in implementing promising projects. Polycarbonate Plant completed basic scope of works on ramping its annual production capacity up to 100,000 tons. Bisphenol A Plant continued to construct its new benzene alkylation unit. HDPE Plant initiated the upgrade of reactor B by furnishing it with off-gas recovery system. We also started design of CCGP-250 MW Power Plant. In 2020, Kazanorgsintez PJSC joined the ranks of PE100+ Association comprising leading world producers of pipe grade polyethylene. Kazanorgsintez PJSC is the first Russian company to become a member of this Association.

Our shareholders approved the Company's Annual Report and accounting (financial) statements for 2020. Shareholders Meeting also dealt with electing the Company's Board of Directors. Milic Zeljko, Executive Director of IPCO-TRADING S.A. (was a member of the Board since 2016) and Rinat K. Sabirov, General Director of JSC Gazprom Mezhregiongaz (was a member of the Board since 2004) left the Board of Directors to be substituted by Ildus M. Safin, Deputy General Director for Construction and Overhaul of TAIF Group, and Denis I. Sotov, Head of Department for Portfolio Investments of Svyazinvestneftekhim JSC.