The main victims of the coronavirus are almost all: oil industry, tyre industry and petrochemistry. But oil refiners and manufacturers of detergents have gone up
The lowest revenue in recent years has been received by enterprises of the petrochemical complex of Tatarstan as a result of the COVID-19 pandemic that took place in the first half of the year in the world. Tax payments of the base enterprises of the complex in the consolidated budget decreased by almost twofold — to 39,6 billion rubles,” Director General of Tatneftekhiminvest-holding JSC Rafinat Yarullin outlined the scale of world export markets’ shrinkage. However, the overall downward wave has bypassed refiners and the manufacturers of detergents, which are in the black to the level of last year.
Overall decrease in production by 6%
At the meeting of the board of directors of Tatneftekhiminvest-holding JSC on 20 July, the results of the work of the petrochemical complex of Tatarstan for the first half of 2020, which had a negative impact on the economy of enterprises because of the COVID-19 pandemic in the world, were summed up. It was chaired by President of Tatarstan Rustam Minnikhanov.
As reported by the director general of Tatneftekhiminvest-holding JSC Rafinat Yarullin, the base enterprises of the petrochemical complex reduced output in the first half of the year by 6%. “The most noticeable cuts were in the second quarter, when production fell by 14-16%. At some enterprises, the drop reached 60%,” he highlighted the uneven depth of the fall. Among the most affected victims of the pandemic are world’s petrochemical exporters.
“Under the influence of COVID-19, air flights were suspended in the second quarter, global car production has fallen, and there are problems with cross-border cargo transportation. This has led to a decrease in exports of products — rubbers, truck and passenger tyres, technical carbon, urea,” the reporter explained. According to Rafinat Yarullin, the production of rubbers, paint materials, and polymer pipes has decreased at the enterprises. The total cost of commodity products has decreased by about a third, he believes.
It is difficult to estimate the direct financial losses of the complex more accurately. As explained by Rafinat Yarullin, in conditions of reduced demand, it is impossible to make a qualitative analysis, since many companies do not present financial results to the holding. “We rely on indirect signs,” he said. Indirectly, as a result of the pandemic, tax payments to the consolidated budget have been reduced by almost twofold. According to Rafinat Yarullin, 39,6 billion rubles were paid for the half-year. In other words, COVID-19 has “eaten off” almost 40 billion rubles in the Tatarstan petrochemical complex.
Tatneft has reduced production by 11% under the agreement with OPEC+
In the first…
Read More: COVID-19 “eats off” 40 billion of Tatarstan oil and gas chemistry
