Planning - economic indicators

PLANNING - ECONOMIC INDICATORS

 

The report of JSS “MAXAM-CHIRCHIQ” based on the results of 2015

 

1.     Fulfillment of production plan.

In 2015 JSS “MAXAM-CHIRCHIQ” produced commodities in current price in the amount of UZS 464 832,0 mln. or 96,4% of forecast volume while growth rate of production volume with  respect  to the last year made 98,3%.

The fulfillment of anticipated indicators on main type of production output is as follows:

 

2. Utilization of production capacities.

Capacity utilization rate made from 60,2% on ammonium sulfate and up to 106,7% on ammonium nitrate. The average percentage of capacity utilization for the whole Company made up 76,5%.

 

The main causes of failure of the production targets and reduction of rate of production volume growth are:

- on ammonia and urea production – shutdown of the Ammonia-76 unit for the unscheduled repair in February and for reconstruction from October 25 till December 10 of 2015;

- on low density ammonium nitrate and weak nitric acid production– no consumer requests.

 

3. Production of consumer goods.

The Company produced consumer goods for 2015 in wholesale prices in amount of UZS 35 611,7 million that makes up 7,7% of  the total production volume of goods. The plan for production of consumer goods accomplished for 102,8%, the growth rate for the past year comprised 102,8%. The main volume of consumer goods:

urea in small packing                              42 342 tn  at the amount of       UZS 19 663,5 million

ammonium sulphate in small packing       42 299 tn                                  UZS 13 304,1 million

phosphorous urea                                        281 tn                                 UZS      164,5 million

sulfourea                                                     267 tn                                 UZS      139,3 million

liquid fertilizers (urea-ammonium mixture)   1 471 tn                                 UZS      586,4 million

liquid carbon dioxide                                2 277 tn                                 UZS      675,3 million

potassium sulphate                                      237 tn                                 UZS      694,6 million

magnesium sulfate                                         43 tn                                 UZS        52,0 million

other consumer goods                                                                           UZS      332,0 million

 

4. Technical condition of fixed assets.

Depreciation of fixed assets for 2015 increased from 53,2% at the beginning of the year up to 54,7% as of January 1, 2016.

Expenditures connected with overhaul of the fixed assets for the year made UZS 35 663,9 mln., including UZS 30 791,7 mln. spent for major overhaul of machines and equipment, UZS 3349,0 mln. – for overhaul of buildings and  facilities  and UZS 1 523,2 mln. – for transportation.

During the year fixed assets to the amount of UZS  54 935,3 mln. were put into operation.

Works as per the project “Reconstruction and modernization of production of raw materials to provide stable production of mineral fertilizers at JSS “MAXAM-CHIRCHIQ” were finished in December. Concept of development of the Company to 2030 was designed in which construction of a new aggregate for ammonia production and a new air separation unit, as well as increase of capacity of LDAN production is provided. Special accent is on the energy efficiency of the plant.

 

5. Development of new types of products, implementation of Localization Projects.

In accordance of the Resolution of the President of the Republic of Uzbekistan № ПП-2298 dated 11.02.2015 “About Localization Program of Finished Products, Components and Materials for 2015-2017” for 2015 the following products were manufactured at JSS “Maxam-Chirchiq”:

1. Chemical agent for automobile roads and airports – 50,0 tons to the amount of UZS 20,7 mln., the product is in stock, it is not sold due to the fault of customer.

2. Aluminonickelmolibdenum catalyst (АNМ) – 3,0 tons to the amount of UZS 153,6 mln. – for own needs.

The total output of localized products was produced in the amount of UZS 174,33 million based on the plan UZS 174,3 million, fulfillment – 100%.

 

6. Sales of finished products.

The main volume of produced mineral fertilizers was delivered according to the balance of production and distribution of mineral fertilizers, approved by SJSC “Uzkimyosanoat”. For the entire volume of production the contracts for products’ supply were concluded.

In 2015 the following were supplied to consumers:

Ammonium nitrate:        total                                                    – 611 145 tn,

                                      including government purchase         – 494 939 tn

                                      excluding government purchase            –   38 941 tn

                                      for products of technical purpose         –   25 624 tn

                                      for export                                            –   51 641 tn

Urea:                              total                                                    – 223 577 tn

                                      including government purchase         –   30 712 tn

                                      sold via commodity exchange              –   67 359 tn

                                      market fund                                         –   28 745 tn

                                      for industry                                          –     6 753 tn

                                       for export                                            –   90 008 tn

Ammonium sulphate:     total                                                    – 185 637 tn

                                      including government purchase             –   25 984 tn

                                      sold via commodity exchange              – 100 013 tn

                                      market fund                                         –   25 078 tn

                                      for industry                                          –     1 970 tn

                                      for export                                            –   32 592 tn

In addition to mineral fertilizers the deliveries of chemical products were done.

Delivered ammonia          - 49 809 ton, including                           - 6 706 ton for export,

Weak nitric acid               - 30 685 ton, including                          - 3 175 ton for export,

Strong nitric acid             - 14 816 ton,

Sulphuric acid                 - 34 500 ton.

 

7. Export and Import.

In 2015 the following products were delivered for export:

Ammonium nitrate                                   – 51 641,2 tn     at the amount of           USD 13 590,3 thous.

Urea                                                       – 92 008,0 tn                                        USD 30 728,3 thous.

Ammonium sulfate                                  – 36 591,9 tn                                        USD   5 727,6 thous.

Ammonia                                                –   6 706,4 tn                                        USD   2 270,3 thous.

Urea-ammonium mixture                          –   2 241,2 tn                                        USD      309,8 thous.

Porous ammonium nitrate (LDAN)            – 51 234,6 tn                                        USD 15 438,0 thous.

Ammofos and urea fertilizer mixture/Mixed nitrogen-phosphate fertilizer – 1 007,9 tn USD  261,5 thous.

Other products                                                                                                  USD   1 437,7 thous.

The total export of the products made USD 69 763,5 thousand, the plan in the amount of  USD 81 665,2 thousand was accomplished for 85,4%. Main reason of nonfulfillment of export plan is price reduction on mineral Export ratio of products in total volume of net sales made 23,1%.

The import of material–technical resources for 2015 made USD 25 324,3 thousand including foreign currency which were used for:

- raw and other materials material for production of outputs         – USD 6 527,7 thous;

- process equipment                                                                  – USD 8 974,1 thous;

- components and spare parts                                                    – USD 9 050,9 thous;

- services                                                                                              – USD    771,6 thous.

 

8. Economic indicators of the production.

During 2015 year the Company sold products in the amount of UZS 515 133,7 million, loss before tax made UZS 25 104,5 million, after taxes net loss made UZS 25 121,1 million. The profitability of sold products based on gross margin made 12,7%, which is for 4,2 percentage points lower than last year index.

The main causes of loss are:

- reduction of price of export production lower than total cost;

- nonobservance of normative periods of reviewing materials on avowal of prices of monopolistic types of production by finance bodies, for this reason UZS 4,5 billion short-received;

- increase of period expenses by means of increase of railway tariff by UZS 6,4 billion,  outpayments of penal provisions to the amount of UZS 2,7 billion and legal costs to the amount of UZS 0,7 billion.

Period expenses made UZS 108 879,4 million including: selling expenses – UZS 30 483,9 million, management expenses – UZS 11 183,7 million, other operating expenses – UZS 67 231,8 million.

When calculating taxes the benefits are applied:

- property tax and income tax are charged with coefficient 0,7 for the share of export in total sales volume in excess of 15%;

- the tax base for property tax is reduced by the average annual cost of re-commissioning of the new technological equipment accordingly.

The positive balance from financial activities in amount of UZS 7 068,7 million was received: Expenses from financial activities amounted to UZS 4 471,5 million, income – UZS 11 540,2 million.

 

9. Financial condition.

As of 01.01.16 debts receivable made                                                    - UZS 626 858,8 mln,

   incl.      overdue                                                                                  - UZS     3 932,3 mln,

               deferred till 1.07.2016.                                                             - UZS 555 796,5 mln,

               in addition deferred till 1.12.2016.                                             - UZS   97 575,0 mln.

Intradepartmental debts                                                                          - UZS 556 288,7 mln,

.  incl.      overdue.                                                                                 - UZS        121,8 mln.

Other debtors                                                                                        - UZS   70 570,1 mln,

   incl.      overdue.                                                                                 - UZS     3 810,4 mln.

Accounts payable for 1.01.16 made -                                                      - UZS 761 225,6 mln,

   including:         overdue                                                                      - UZS   16 579,7 mln,

                          deferred till 1.07.2016.                                                 - UZS 690 450,7 mln,

                          in addition deferred till 1.12.2016.                                 - UZS   97 576,0 mln.

Main debts:                                                                                                       incl. overdue

SC « Uztransgaz »                                                                                 - UZS 560 432,0 mln.

Chirchik  district power station                                        UZS 116 735,6 mln.                         -

SJSC Railway Company «Uzbekiston temir yullari»          UZS     7 663,5 mln.                       14,8

incl. Transport Documents Technical Centre                     UZS     7 369,9 mln.                         -

Gas Refinery Factory, Mubarek                                       UZS     5 721,8 mln.                         -

Unpaid wages                                                                UZS   10 934,1 mln.                  6 600,0

Debt to the shareholders                                                UZS        712,3 mln.                        -

Debt to the budget                                                         UZS     7 633,8 mln.                         -

Debt to the government special purpose fund                 UZS   10 448,3 mln.                  1 424,1

The negative balance between accounts receivable and accounts payable as of 1.01.2016 made the amount UZS 134 366,9 million which was covered by current assets.

 

10. Claims work.

For 2015 118, 133  claims were raised by Legal Department of JSS “Maxam-Chirchiq” to the third parties in the amount of UZS 140 509,9 million and USD 8 578,3 to collect receivables and penalty for breaking contractual obligations.

35 claims were satisfied in the amount of 24 473,1 million and USD 7 867,7; 54 claims to the amount of UZS 103 382,4 million were delayed until 01.01.2016, 18 statements of claim are sued to the economic courts, 1 claim rejected.

37 claims in the amount of UZS 26 349,2 million were presented to JSS “Maxam-Chirchiq”.

16 statements of claims in the amount of UZS 39 432,0 million were passed to the economic courts of RUz. And USD 188,5. 16 claims in the amount of UZS 38 966,9 million and USD 118,5 were satisfied. On 8 claims debts are paid, 7 enforcement orders are in departments and 1 enforcement order has not come.

8 claims in the amount of UZS 11 787,2 million were sued to the Company. On the court decision UZS 1 469,7 million was satisfied.

 

11. Labor and Salary.

The number of the personnel is characterized by the following data:

 

The average staffing number for 2015 was increased for 13 people, including the number of industrial personnel which have been increased for 7 people at the expense of reducing the number of vacancies, non-industrial personnel – decreased for 14 at the expense of cut, number of outworkers increased for 20 people at the expense of creation of new jobs.

 

Wages fund expenses and monthly average salary:

 

Wages fund have been increased for 2015 in comparison with 2014 for UZS 7 137,6 million, the growth made 9,4%.  In accordance with the Decree of the President  of Republic of Uzbekistan dated 26.08.2015 and for the purpose of further increase of the living standards of the employees of the company and strengthening their social support the minimum wage rate for the company have been increased in 1,1 times from 1.09.2015. Payments to the employees taken on the basis of labor contract were cut by 6,3%.

 

12. Selection and placement of employees.

The number of employees in JSS “Maxam-Chirchiq” as of January 1, 2016 was 6 649 people, including 2 414 women or 36,3% of the total number of employees. Out of total number of employees 4 563 people –are production personnel, 946 927 people are the maintenance personnel, 254 people – technical personnel, 540 people are specialists and 346 people are managers. Fluctuation of personnel for the year decreased by 2,4 percentage points and made 6,7%.

The educational level of employees:

- 962 people have a high education

- 2 899 people have secondary-technical and vocational education

(including college graduates in 2015 – 125 persons).

The age structure of employees:

- up to 30 years of age    – 1 967 people or         29,6% of the total population

- from 30 till 50 years       – 3 390                         51,0%,

- over  50 years               – 1 292                         19,4%.

3 931 people were trained in 2015 including:

- training for  new workers                                               –    254 people;

- retraining of workers                                                     –    806 people;

- trainings for related professional occupations                –      77 people;

- professional development for workers by course method          – 1 834 people;

- training in educational center                                         –    960 people.

Expenditures for training and retraining of staff for the year made UZS 754,4 million.

 

13. Labor protection and Safety Engineering.

In 2015 2 accidents with easy outcomes were registered at the Company. Frequency rate is 0,3, seriousness rate is 30,5.

For the purpose of occupational safety the amount of UZS 3 535,7 million was spent

Including:

- protecting clothing, safe shoes and other personal protective equipment        UZS 1 744,1 mln.

- providing milk, juice and preventive nutrition                                                  UZS 1 419,8 mln.

- purchase and delivery of detergents                                                              UZS      61,9 mln.

- implementing of activities provided in Collective Agreement                           UZS    309,9 mln.

Expenditures from Labor Safety Fund allocated from net profit made UZS 19,860 million, balance as of 1.01.2016 made UZS 0,985 million.