Nizhnekamskneftekhim Production Up 22.9%
OREANDA-NEWS. Nizhnekamskneftekhim (NKNK) produced RUR36.145 bln worth of products for January-August 2007, exceeding results of past year by 22.9% in existing prices, Veles Capital investment company reports with reference to Nizhnekamskneftekhim. For past 8 months, NKNK pumped over 251 tons of ethylene, 32% above results of the past year.
According to company's corporate newspaper, through whole summer all ethylene pipelines pumping stations underwent complete renovation and maintenance. Newspaper also reports that enterprise expects a shift of its structure. By 2010, the company intends to own only production plants as part of company, while all the auxiliary branches are to become subsidiaries of NKNK, cooperating under contracts.
Veles Capital experts see this news as stably positive, as the growth of production results is within the range of the planned growth expected at year's end, and already included in a model of fair price. At year's end the analysts forecast growth of sales at 26.5% to USD2216 mln; profit is set to rise to 27% (USD225 mln ).
"We also think that company is attractive for investments. Especially considering the decrease of breakdown rate of production after a complete renovation of equipment and change of branches structure," the experts point out.
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