Preliminary work results of PJSC KuibyshevAzot for 2018

Year 2018 was a record for the Company in terms of financial and production indicators. Maximum output was achieved for almost all main products — ammonia, ammonium nitrate, urea, nitric acid, caprolactam, and ammonium sulphate. In many ways, it was made possible due to step-by-step implementation of Company’s development programs, operating equipment modernization, and construction and mastery of new productions.

Sales revenue at the end of the year was 59.7 billion rubles, increasing in comparison with the previous year by 38.7%. Net profit increased up to 7.1 billion rubles. Such results were achieved due to the increase in volume of salable products by 18.4%, sales increase of ammonium produced by the joint venture Linde Azot Togliatti, as well as the improvement in the prices situation of caprolactam and its processing products.

The production volume of the main types of products amounted to:

— ammonia — 1,106.0 K tons (including 448 K tons from LLC LindeAzotTogliatti) that is 125.6 % to the level of 2017;

— ammonium nitrate — 625.4 K tons (101.6%);

— urea — 356.5 K tons (115.2 %);

— ammonium sulphate — 530.3 K tons (109.3%);

— caprolactam — 210.1 K tons (108.0%);

— polyamide-6 — 151.3 K tons (102.8%);

— industrial yarn — 5.6 K tons (48.0%);

— dipped cord fabric — 18.0 million linear meters (109.2%).

In 2018, a significant amount of work was carried out for the construction of new and retrofit of existing production facilities. LLC Granifert, production of compacted ammonium sulphate, was put into operation and reached the design capacity. A whole set of measures was implemented to modernize caprolactam production that made it possible to increase its capacity up to 220 K tons.

The construction of ammonium sulfate-nitrate production and universal complete line (UCL No. 2) of nitric acid is going on. The plant for production of liquid nitrogen-contented fertilizer (КАС+S), demanded by agricultural producers, was put into operation.

Together with Maire Tecnimont S.p.A. (Italy), implementation of project on urea production construction was started. As a part of the project financing by Vnesheconombank (VEB), PJSC KuibyshevAzot has launched a project of sulfuric acid and improved-oleum production. A site for the first construction stage of nitric acid and ammonium nitrate machines is being prepared; it will provide a significant reduction of emissions to the atmosphere. A chiller plant was put into operation on caprolactam production, that will make it possible to reduce energy consumption at caprolactam and polyamide production.

Special attention is paid to ecological projects and environmental protection actions. To reduce the environmental impact, at nitric acid production plant a unit for preparation and control of gaseous ammonia supply to machines was inserted, modernization with changing of process diagram and exclusion of one of the emissions sources was carried out, and new modern sanitary column was put into operation. The construction of sewage treatment facilities is going on for Northern industrial hub and the Central district of Togliatti.

In 2018, the confirmation was received on the compliance of the integrated management system (IMS) with the requirements of international quality, environmental and industrial safety, and labor protection standards.

Totally in 2018, for construction and retrofit was spent 6.4 billion rubles, turnaround maintenance of factory facilities was made for the amount of 2.1 billion rubles. Therefore, for the Company’s development 8.5 billion rubles were allocated.

Traditionally, in 2018 special attention was paid by PJSC KuibyshevAzot to the improvement of the living conditions and social security of personnel. Expenses in this field amounted to 327 million rubles.

3.1 billion rubles were paid to the budgets of various levels as taxes and insurance contributions.