Metafrax Summarized Its Production and Financial Activities in 2016 Under the RAS

According to the preliminary reports data under the accounting standards, in 2016, profit of PJSC Metafrax from the finished production realization made 17 billion 423 million roubles that is higher than the same value of the last year by 1.150 million roubles, or 7%.

The produced production value made 17 billion 139 million roubles, that is more than in the last year by 512 million roubles, or 3.1%. The export share in the turnover was 33.2% against 38.7% according the 2014 results.

The company’s social package was 184 million roubles.

In this year, the actual methanol production volume has reached 1.058 thousand ton that is more than in the last year by 129 thousand tons, or by 12%.

The formalin outlet made 367 thousand ton (+15 thousand ton, or 4%, to 2015). The UFC production increased by 11.7 thousand ton making 194 thousand ton. The pentaerythritol production volume was 22.8 thousand ton (+526 ton, or 2%). The micronized pentaerythritol output was 892 ton. The urotropin production made 28.4 thousand ton (the same as in the last year). The micronized urotropin output made 325 ton. The packaged polyamide production made 766 ton, (+66 ton, or +8.6% to 2015 level).

In 2016, the investment volume made 3 billion 629 million roubles (+ 954 million roubles, or 26%, to 2015 level).

In this accounting period, the company updated its railway park (methanol and formalin tanks were bought). The second stage of the methanol unit revamping is under realization, once it’s finished, the unit capacity will increase by 10% up to 3 375 tons per day. The second low-methanol concentrated formalin unit construction was finished. The one section three-floored house was put in commission.

Armen Garslyan, Metafrax Board of Directors Chairman:

• In 2016, we had been witnessing the significant methanol prices decreasing in the world market. Although the production capacity of the company had the maximum loading, the pricing environment affected the financial and economic activity results.

With this, Metafrax saved the sales balance between the Russian and the external markets. And today we can state that in 2017, the company has contracts for the main kinds of production.

To the beginning of the year, the worldwide methanol prices had been significantly increased. The Russian market had also grown by 10%, but it remains to be in proficit with the existing volume of capacities and with putting the new ones into operation.

Even taking into account the colossal investment obligation of the company, in 2017, the annual PJSC Metafrax budget provides the growth in relation of the last year values.

Vladimir DAUT, PJSC Metafrax General Director:

• The record methanol production I consider as the achievement of the year. This border has become the largest in the product output history since the production start in September 1984.

Despite the difficulties in the national economics and the methanol prices decreasing in the export deliveries, the company finished this year worthily.

Recently, the stable dynamics of the methanol export prices has become evident, as the internal and external markets are recovered and the rouble is strengthened. No Russian company has the same methanol treatment depth as we are: only in Gubakha, we can treat 340 thousands ton of the methanol per year, or almost 30%. Therefore, we will not only stand the crisis, but also will grow our presence in the market up.