Kazan Public Joint Stock Organichesky sintez : Profit of Kazanorgsintez Surges to RUB 14.7 Billion

2 August 2021

Profit of Kazanorgsintez Surges to RUB 14.7 Billion

Kazanorgsintez PJSC summarized its financial performance in H1 2021 under Russian Accounting Standards. According to accounting statements, the Company's net profit increased up to RUB 14.695 billion. Compared to crisis-ridden H1 2020, this indicator grew by more than 3.6 times. In the previous reporting period, revenue of Kazanorgsintez PJSC reached RUB 52.602 billion, which exceeds results of H1 2020 by 68%.

Based on accounting balance sheet, assets of Kazanorgsintez PJSC increased by 12% making RUB 82.785 billion. The Company's current assets amounted to RUB 21.421 billion, which is 19% higher than indicators for the same period last year.

Performance of Kazanorgsintez PJSC is mainly determined by polymers market recovery after last year's severe crisis. Reminder: 2020 started with lower-than-normal oil prices and feedstock prices associated therewith. This inevitably led to drop of global polymer prices. After OPEC deal raw material prices soared up resulting in critical feedstock deficiency in petrochemicals sector. Russia felt this especially starkly. At the same time, COVID-19 pandemic adversely affected the markets. Quarantine all over the world precluded polymer producers and processors from adjusting prices alongside with those for oil, oil products and LPG. As a result, entire global polymers industry incurred temporary inverse correlation in terms of feedstock. Under these circumstances, most producers significantly decreased their production rates, while Kazanorgsintez managed to overcome this tough time having its facilities loaded to the fullest with neither interrupting the operation nor cutting down the output. However, the Company's financial indicators predictably declined.