TRANSNEFT Insists on Changing Leadership of NMTP
OREANDA-NEWS. A press conference by Maksim Grishanin, the company’s First Vice-President, was held in TRANSNEFT JSC. The press conference was dedicated to the situation concerning Novorossijsiky marine trading port (NMTP). According to M. Grishanin, TRANSNEFT insists on changing leadership of NMTP. “We consider that the management of the company failed with the set tasks. Decrees of the Board of Directors were not implemented”, he said. M. Grishanin clarified that TRANSNEFT’s main complaints regarding NMTP leadership are as follows: non-fulfillment of the investment program, bad technical state of the port, a huge debt by NMTP, appearance of intermediary companies and reduction of attractiveness of the port.
M. Grishanin informed that in the year 2012 the investment program in the port was implemented only in half in comparison with the planned level, and the plans of reconstruction of capacities were realized only for 10 per cent. The corresponding funds for fulfillment of these works had been included into the port tariffs and confirmed by the Tariff Federal Service. According to the First Vise President of TRANSNEFT JSC, investments into modernization of Sheskharis oil transshipment terminal for the year 2012 had been planned in amount of 747 million RUR, but only 152 million RUR were spent. “One can’t say that there is no money in the port”, he added. M. Grishanin noticed that above all, the technical state of the port, as well as the associated infrastructure, is also in bad condition. “In July the shareholders agreed with the management of the port an investment plan regarding reconstruction, which allowed eliminating all the lacks. We asked the leadership to present us a report, but up to now we still haven’t received it”, added M. Grishanin.
To TRANSNEFT’s opinion, the policy of NMTP management results in the fact that in the port, as well as in its affiliated structures, we can see reduction of transshipment volumes, that is due to different expeditors who monopolize various business branches and restrict access to the port for cargo owners. “That means cargoes are already sold on their way to the port. As a result, real companies – cargo owners leave Novorossijsk for other ports”, clarified the top manager of the company. Herewith, the total volume of cargo turn-over growth in this very port is only about 1.2 per cent, when an average rate in this segment is 5 per cent.
TRANSNEFT also wants to pay attention to a significant debt burden, which shall appear in 2014 in the port. M. Grishanin informed that according to preliminary results of its work in 2012, EBITDA should amount 589 million USD, while the port will have to pay its loan in amount of 584 million USD. “We have doubts that the group will be able to serve its loan obligations in 2014”, said M. Grishanin. At that he noticed that TRANSNEFT had had first questions to the leadership of the port after summarizing financial results of NMTP’s business activity in the year 2012. M. Grishanin informed that TRANSNEFT has already discussed this issue with other shareholders of the port, inter alia with representatives of the Government. “We discussed with the shareholders the investment plan which had not been executed. We expressed our concerns. But no response has followed yet”, he said. TRANSNEFT has already demanded to convene the Board of Directors regarding the question of changing the leadership of the company, though such a meeting has not been announced yet. According to M. Grishanin, TRANSNEFT is looking for a candidate who would replace Rado Antolovich at the post of NMTP General Director. “Yes, he is an expert. But if one is an expert, he must realize decisions of the Board of Directors, he must realize an investment plan. One’s reputation only is not enough. We are considering the question regarding candidates for this position for the moment”, said M. Grishanin.
Despite its claims to the work of NMTP, TRANSNEFT is not going to resign from the shareholding structure. “We haven’t discussed any alterations of our stock, and we do not plan to anyhow change our incorporated attendance”, reported M. Grishanin.
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