Kazanorgsintez PJSC completes the first six months with profits

Kazanorgsintez PJSC completes the first six months with profits

As per the balance sheet, the fixed assets of Kazanorgsintez PJSC increased by 1.6 per cent up to RUB 50.635 bn. There was as well the increase in the volume of money in terms of circulating assets. The gain made up 48.7 per cent or RUB 3.92 bn in absolute terms. Notwithstanding the half year’s net positive, the tough market situation influenced the key figures. Just so, the Company’s sales decreased by 22.2 per cent if compared with those of the last year, and the Company’s net profit decreased by 48.6 per cent if compared with that of the last year. The first six months appeared to be a tough time for companies of adjacent sectors. The year started to set the price for oil and correlating feedstock at a level lower than normal. It inevitably resulted in the fall of world prices for polymers as well. After OPEC deal the feedstock resources demonstrated skyrocketing prices. Consequently, the petrochemical industry came across a catastrophic feedstock shortfall. It was a particularly acute problem in Russia. Alongside this, the coronavirus infection had a negative effect on the markets. Lockdown measures taken worldwide restricted capabilities of polymer manufacturers and converters to adjust prices in parallel with the prices for oil, petrochemicals and liquefied hydrocarbon gases. As a result, the world plastics industry found itself in the reverse correlation with feedstock situation. Under these circumstances the majority of manufacturers severely decreased their operating rates. Kazanorgsintez PJSC managed to overcome this period maintaining its maximum operating rates and avoiding any shutdowns and reductions. As lockdown measures weakened, the demand significantly revived. In July, the world quoted prices for oil started growing. The situation in the sector is returning to normal. Kazanorgsintez PJSC expects comfortable stable operating mode within the end of the year while there is not any market turmoil.