JSC METAFRAX results in 2015: The record year has formed a basis for the further development

In 2015, JSC Metafrax produced the products with the overall cost of 16 billion 627 million roubles, that is 3 491 million roubles, or 26.6%, more than in the last year.

The finished production realization benefit has reached 278 million roubles, that is more than in the last year by 3 134 million roubles (+23.8% to the last year level). The export share in the turnover was 33.2% against 38.7% according the 2014 results.

The company’s social package was 187 million roubles. Besides, construction of the multifamily house for the company employees in Gubakha has become a social investment object and put in commission in November, 2015.

In 2015, the actual methanol production volume has reached 929 thousand ton, that is less than in 2014 by 42 thousand tons. This insignificant production volume decrease is connected with the unit longstand shutdown maintenance that had been carried-out in August and September. After the first methanol unit revamping stage is finished, its daily capacity increased from 3000 to 3060 ton per day.

According to the 2015 results, the internal methanol consumption was 311.7 thousand ton (34% of the overall production). The UFC production decreased by 18.1 thousand ton making 182.4 thousand ton. The formalin production increased by 5.3 thousand ton, or by 1.5%, reaching 352.4 thousand ton in the end of the year. The urotropin production made 28.5 thousand ton (+ 1.1 thousand ton, or +4%). The micronized urotropin output made 275 ton. The pentaerythritol production volume was 22.3 thousand ton (+2%). The micronized pentaerythritol output was 1 275 ton. The packaged polyamide production made 700 ton, maintaining the last year level.

In 2015, the investment volume made 2 billion 675 million roubles, that was 2.5 times more than in 2014. The company updated its railway park (new railway cisterns were purchased for the ethanol transportation), finished the first stage of the methanol unit revamping, performed the reformer modernization. The second low-methanol concentrated formalin unit construction is performed.

Preliminary figures indicate that the net profit gained by the company in 2015 made 7.1 billion roubles that is more than 2014 value by 2.4 billion roubles, or by 52%.

This achievement of the financial and economic factor level has become a record in the entire company history, the company management connects it with the further biggest investment projects realization.

Armen Garslyan, Metafrax Board of Directors Chairman:

• According to the 2015 results, the Russian market has shown a sufficient dynamics, the price environment was advantageous. Therewith, the export prices dynamics wasn’t that obvious. Most of our efforts were concentrated on the domestic market. As the result, the ruble profit growth exceeds the foreign currency component.

Taking into account the Russian and European market tendencies, the company budget project of this year allows decreasing of the basic financial and economic values by 8-10% in relation to the 2015 results.

The beginning of the year has shown the demand and contract prices decreasing at the European methanol market. The internal Russian market doesn’t demonstrate the growth as well.

In 2016, we intend to maintain the maximum effective capacity and keep the production and sales volumes at the record level.

The company will continue to increase the investments volume, realize the investment plans that were agreed under the Technical Upgrading, Revamping and Development Program until 2020, step-by-step.

In 2016, the overall Metafrax investments volume will make 5.7 billion roubles that is more than twice more than the 2015 value.

The company intends to finish the construction and installation activities in the framework of the second stage of the methanol unit revamping, bring its capacity to 3375 ton per day and to finish the construction and start the 55 percent formalin unit with capacity of 90 thousand ton per year. Besides, significant amount of money will also be channelled to update the railway-yard of the company.