Operations Results of KuibyshevAzot PJSC for 9 months of 2020

The sales volume of KuibyshevAzot PJSC commercial output for the nine months of 2020 decreased by 15% compared to the previous year and amounted to 34.6 billion rubles. Net profit decreased by 60% to 1.44 billion rubles. The change in indicators over the same period of the last year is due to unfavorable price conditions in world markets, as well as a significant decrease in demand for caprolactam and polyamide in connection with the coronavirus pandemic. Compared with the indicators for the same period in 2019 the main products output was:

- ammonia (taking into account the output of JV Linde Azot Togliatti LLC) – 778.1 kt (97.24%);

- ammonium nitrate – 553.8 kt (112.8%);

- urea – 246.5 kt (90.1%);

- ammonium sulphate – 345.0 kt (88.1%);

- UAN – 199.1 kt (153.5%);

- caprolactam – 140.7 kt (89.8%);

- polyamide-6 – 100.3 kt (90.4%);

- polyamide yarn – 3.1 kt (80.7%);

- dipped cord fabric – 10.4 million linear meters (73.1%).

In autumn 2020, the enterprise carried out shutdown overhauls at the ammonia, urea, ammonium nitrate and caprolactam production facilities.

Despite the difficult economic situation, the implementation of the investment projects of most importance for the development of the enterprise continues, what will make it possible to count on increasing production efficiency and reducing costs in an extremely short time. In partnership with the Italian concern, Maire Tecnimont Group, the Company executes the construction of a new urea plant, which provides for the use of advanced technologies that ensure environmentally friendly and safe production. Within the framework of the state program "Project Finance Factory", the construction of the sulfuric acid of K grade and improved oleum plant with a total capacity of 500 thousand tons per year is under completion. Commissioning work continues at the ammonium sulfate-nitrate production.

The planned supervisory audit at the enterprise confirmed that the integrated management system (IMS) of KuibyshevAzot PJSC meets the requirements of international standards for quality management systems, environmental management and occupational health and safety management.

In September, the production of polymer-composite materials (compounds) based on polyamide-6 was started at STFG enterprise in Rudolstadt (Germany), which is part of the KuibyshevAzot group of companies. Investments amounted to over 3 million Euro. Production capacity is 12 thousand tons per year.

Particular attention is paid to environmental projects, within the framework of which the construction of the first stage of storm water treatment facilities for the Northern industrial hub and part of the Central District of the city of Togliatti has been completed. The project has become unique in its own way for the Samara region and one of the few in the Russian Federation. The first stage of the project was included in the federal program “Improvement of the Volga river”; as a part of the national project “Ecology”; and was implemented at the expense of the enterprise’s own funds. The volume of investments in the first stage amounted to 872 million rubles, while the total investment in the project is planned at 1.2 billion rubles. The construction of the second stage is currently in progress.

At the production of ammonium nitrate, a new granulation and evaporation plant is constructed to replace two existing ones, what will significantly reduce dust emissions.

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

In 2020, KuibyshevAzot PJSC was recognized as the winner of the All-Russian competition "Leaders of Russian Business: Dynamics, Responsibility, Sustainability - 2019", organized by the Russian Union of Industrialists and Entrepreneurs, in the category "Best International Project". A project of a modern ammonia production facility, implemented in cooperation with Linde AG (Germany), was presented for the competition.

For the production development of the enterprise for 9 months of 2020, PJSC KuibyshevAzot spent 4.6 billion rubles, including 1.16 billion rubles for the repair and renewal of equipment.