Public Joint Stock KuibyshevAzot : KUIBYSHEVAZOT PJSC SUMMARIZED PRELIMINARY OPERATING RESULTS FOR 2021

2021 was a record year for the Company in terms of financial and a number of production indicators. The maximum output was achieved for polyamide, liquid UAN fertilizers, nitric acid, dipped cord fabric.

Sales revenue for the year increased by 42.8% to 82 billion rubles. Net profit amounted to 21.7 billion rubles. The adopted development strategy of the Company and balanced management decisions made during the coronavirus pandemic crisis made it possible to take advantage of the recovery in demand for products and the improvement in prices.

The production volume of the main types of products amounted to:

- ammonia (including LLC Linde Azot Togliatti) - 1 101 K tons, that is 105% to the level of 2020;

- prilled ammonium nitrate - 601,4 K tons - (98%);

- prilled urea - 263,6 K tons (107%);

- ammonium sulphate - K tons (103,2 %)

- caprolactam - 203,2 K tons (107,1 %);

- polyamide-6 - 175,2 K tons (123,4 %);

- polyamide yarn - 7 K tons (159,5%);

- dipped cord fabric - 19,7 million linear meters (134%).

In 2019, a significant amount of work was carried out for the construction of new and retrofitting of existing production facilities. In August 2021 the new production of complex fertilizer - ammonium sulphate-nitrate was started. New fertilizer is characterized by improved physical and chemical properties. It simultaneously supplies plants with nitrogen, sulfur and trace nutrients, allowing for more efficient crop production. Project investments amounted to 4.3 billion rubles.

In partnership with the Italian concern Maire Tecnimont Group, the construction of a new granulated urea plant is at the final stage. The project provides for the use of advanced technologies that ensure environmentally friendly and safe production.

The financial results for the past year made it possible to launch a major and important project for the construction of a production complex as part of the Project Finance Factory, in partnership with VEB.RF and Gazprombank. During the construction of a production complex of nitric acid and ammonium nitrate solution, technologies will be used that meet modern requirements for energy efficiency, environmental and industrial safety.

At the production of ammonium nitrate, a new granulation and evaporation plant is under construction.

Caprolactam production has undergone extensive work to renewal equipment and improve process efficiency, which has reduced resource consumption and environmental impact.

In 2021, a new asset of the KuibyshevAzot group of companies was created in India - an enterprise for the production of engineering plastics.

In total, KuibyshevAzot PJSC invested 7.4 billion rubles for production development in 2021, and 2.1 billion rubles for the renewal of the existing equipment. Thus, 9.5 billion rubles were invested for the development of the Company.

In 2021, Company received a confirmation of the compliance of its integrated management system with the requirements of international standards in the field of quality, environmental and industrial safety, labor protection.

KuibyshevAzot pays particular attention to environmental projects and environment protection measures. The company completed the construction and commissioning of the second phase of storm water treatment facilities of the Northern industrial hub and of the part of the Central District of the city of Togliatti. This is an important environmental project, which is included in the federal program "Improvement of the Volga" as part of the national project "Ecology". A large amount of work has been done to modernize the process and reduce the environmental impact of the complex of mineral fertilizers and nitric acid production, and commissioning is underway to install an automatic emission control system.

Technical solutions have been introduced to modernize equipment and optimize technological processes, which made it possible to reduce the discharge of pollutants in wastewater by more than 7%.

In accordance with the state program and the fulfillment by the Russian Federation of obligations under the Stockholm Convention on Persistent Organic Pollutants (POPs), in 2021, the enterprise completed work on replacement of electrical equipment with new one that does not include POPs.

KuibyshevAzot became one of the first industrial enterprises of the Samara Region to join the implementation of the Regional Environmental Standard and sign an agreement on cooperation in the field of environmental and industrial safety with the Government of the Samara Region.

In 2021, AK&M news agency included the Company in the TOP-5 of the social performance rating of the largest Russian companies, which bring the maximum benefit to society with minimal impact on the environment.

KuibyshevAzot actively participates in the development of the territory in the city of Togliatti and the Samara region where the social and charitable projects oriented at residents of the city and the region are implemented. The Company invested 5.9 billion rubles to the budgets of various levels in the form of taxes and insurance premiums.

In the context of the COVID-19 pandemic, Praxair Azot Togliatti, the joint venture of KuibyshevAzot PJSC and the Linde Group company, was able to provide the necessary volumes of oxygen to medical institutions in the Samara region and other regions.

In 2021, special attention was paid to the supporting of the labor collective, the social protection of personnel.