Operations Results of KuibyshevAzot PJSC for Q1, 2020

Commercial products sales of KuibyshevAzot PJSC for the three months of 2020 amounted to 13.7 billion rubles, which is 6.9 % less than the results of the previous year corresponding period. As a result of decline in demand and adverse conjuncture of world market prices for the Company’s products, especially for caprolactam and its derived products, associated with the crisis caused by the Coronavirus pandemic and significant drop in prices for oil and petroleum derivatives, net profit decreased sharply and amounted 77 million rubles for Q1 of 2019.

Compared with the same period of 2019, the output of the main products was as follows:
- ammonia – 99.1% (taking into account the output of JV Linde Azot Togliatti LLC);
- ammonium nitrate – 107.3 %;
- urea – 100.2 %;
- ammonium sulphate – 108.8%;
- UAN – 187.6%
- caprolactam – 109 %;
- polyamide-6 – 116.3 %;
- polyamide yarn – 53.5 %;
- dipped cord fabric – 80.9%.
In February 2020 implementation of the project for the construction of the second nitric acid line at the production site in Togliatti was finished.
Notwithstanding the tough economic situation, the implementation of the most important projects continues.
Commissioning works at the production of ammonium sulphate-nitrate are in progress.
Construction of the plant for the production of sulphuric acid of K grade and refined oleum with a total capacity of 500 thousand tons per year continues. The project aims to reduce the cost of caprolactam production, ensure raw materials supply and it is implemented under the state program Project Finance Factory.
The work on the construction of a new urea plant in cooperation with Italian Maire Tecnimont Group continues. Project includes implementation of advanced technologies, providing environmentally friendly and safe production.
Within the Federal program “Clean Volga”, the Company is building treatment facilities for storm water sewage of the Northern industrial hub and a part of the Central district of Togliatti. The project for the construction of waste treatment facilities is aimed at solving environmental problems of the Volga basin and is implemented at the expense of PJSC KuibyshevAzot.
A project aimed at reduction of emissions from the ammonium nitrate production – construction of a new granulation and evaporation plant instead of the two existing ones – is under implementation.

For active work on providing mineral fertilizers to domestic agricultural producers, the team of PJSC KuibyshevAzot received a recognition letter from the Ministry of Agriculture of the Russian Federation.

All prospective projects implemented by the Company are aimed at reducing the consumption of raw materials, heat and energy resources, reducing the environmental impact of production as well as maintaining the market position of the Company in the current conditions of economic instability.

In Q1 2020 KuibyshevAzot PJSC invested more than 2 billion rubles in production development of the enterprise and upgrading of the existing equipment.