Fanil Agliullin took part in the regular meeting of the Board of Directors of TATNEFT PJSC
The next meeting of the Board of Directors of TATNEFT PJSC was held today under the chairmanship of the President of the Republic of Tatarstan Rustam Minnikhanov. The meeting was held at the Government House of the Republic of Tatarstan (Kazan).
The Board of Directors reviewed the results of TATNEFT's budget execution for January 2022 and approved the budget for March 2022.
The meeting participants got acquainted with the implementation of the Company's investment program for 2021 and plans for 2022. The results of the implementation of the investment program for 2021 will be announced by the Company when publishing the consolidated financial statements in accordance with IFRS for the corresponding period, which is scheduled for mid-March 2022. Plans for investments for 2022 are formed taking into account the growth of oil production, the continuation of the implementation of large projects in oil refining, the tire business, petrochemicals and other areas of the Company's activities. Details of the planned investments in 2022 will be disclosed separately.
The Board of Directors got acquainted with the information on the development of oil and gas projects outside of Tatarstan. From 2018 to 2021 the growth of Tatneft's reserves in the territory of the Russian Federation is estimated at 116 percent of the planned or 123.2 million tons of oil and 6.1 billion m3 of gas. Tatneft owns 33 licensed areas in five regions outside the Republic of Tatarstan, including 46 fields at the stages of exploration and trial operation.
From 2018 to 2021 8 sites for subsoil use have been acquired, of which 2 in Tatarstan have already been put into development in 2022. Work to replenish the increase in reserves continues. The Board of Directors decided to continue the implementation of existing and prospective projects at the licensed areas of the TATNEFT Group in the Russian Federation in accordance with the approved plans.
Information on the development of the tire business of the TATNEFT Group KAMA TIRES was heard at the meeting. To improve its efficiency from 2018 to 2021. organizational transformations were carried out, including the optimization of the organizational structure, supply management processes, production and sales network. As a result, the quality of sales management has improved, and a unified pricing policy has been formed.
The EBITDA indicator of the tire business KAMA TIRES of the TATNEFT Group at the end of 2021 (based on management accounting data) amounted to more than 9 billion rubles, which is higher than the plan. The key factors of influence were the pricing policy and the implementation of measures to optimize costs.
Today, Tire Business enterprises as part of TATNEFT produce more than 440 commodity items of tires for various types of vehicles, taking into account climatic and road operating conditions. New actual models are mastered annually. In 2021, 40 new products were developed, including 4 lines of passenger tires, truck tires for use in quarries, a new group of tires for ATVs, etc.
The company is expanding tire production in Nizhnekamsk. Additional capacities were put into operation with an annual output of 300,000 truck all-steel tires and 1.2 million modern passenger tires. The implementation of the tire project in Kazakhstan also continues. The joint venture with a capacity of 3 million passenger and light truck tires and 0.5 million SSC truck tires per year is planned to be launched in 2022.
To reduce the impact on the climate, the TATNEFT Group is implementing measures to reduce its carbon footprint. In 2021, the Company reduced its carbon intensity by 245.5 thousand tons of CO2-eq. As additional measures to reduce greenhouse gases, 38,000 seedlings were planted in the area of the Nizhnekamsk industrial hub. In general, the Tatneft Group planted 8 million trees in 2021.
Further development of the tire business of KAMA TIRES Company includes the implementation of investment projects to create new products through innovation and new technologies, new points of growth in operating profitability, and an increase in investment efficiency. One of the key strategic goals of the business area is to ensure EBITDA profitability at the level specified in the Strategy of the Tatneft Group.”
The participants got acquainted with the information on the prevention and fight against corruption in Tatneft. The Company implements a set of measures to combat corruption in business, including a comprehensive due diligence of counterparties, competitive procedures for selecting suppliers and contractors, internal reviews and audits. Considerable attention is paid to working with suppliers, contractors and buyers on anti-corruption issues. The results of TATNEFT's activities in this area were highly appreciated in the national Anti-Corruption Rating of the Russian Union of Industrialists and Entrepreneurs. In the reporting year, the adjustment of the existing regulatory framework and the development of new standards continued. To strengthen preventive measures and improve the competencies of employees in this area, training courses are being implemented on the basis of the corporate university. In the current year, work to strengthen the an anti-corruption practices of the Company will be continued.