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Report of the Board on the results of financial and economic activities. (2021)

Report of the Board on the results of financial and economic activities. (2021)

18 Sep 2023г.

Hearing the report of the Board of JSS "Maxam-Chirchiq" on the results of financial and economic activities, the implementation of the business plan, as well as the measures taken to achieve the development strategy of JSS "Maxam-Chirchiq" based on the resulta of 2021.                       

 

Report of the Board on the results of financial and economic activities.

1.   Fulfillment of the production plan.

 

For 2021, the JSS “MAXAM-CHIRCHIQ” produced marketable products in current prices in the amount of UZS 2,193.7 billion or 125.1% of the projected volume, while the growth rate of production compared to last year made 102.6%.

The fulfillment of the forecast indicators for the release of the main types of products is as follows:

 

Name of the product

Unit of meas.

Task

Produced

Fulfillment of plan

%

Growth rate

Synthetic ammonia

tn

538 000

532 741

99,0

96,8

including commercial grade

tn

72 000

42 802

59,4

71,5

Mineral fertilizers in 100% nitrogen

tn

319 890

343 544

107,4

98,0

Ammonium nitrate

tn

450 000

523 307

116,3

97,5

Urea

tn

270 000

245 782

91,0

96,2

Ammonium sulfate

tn

190 000

233 263

122,8

104,8

LDAN

tn

60 000

70 185

117,0

111,1

Weak nitric acid .

tn

442 000

496 810

112,4

101,8

Including commercial grade

tn

24 000

25 909

108,0

117,5

Strong nitric acid.

tn

181 400

190 216

104,9

102,2

 

2.   Utilization of production capacities.

 

Capacity utilization rates ranged from 60.1% for ammonia production to 117.0% for LDAN production. The average percentage of production capacity utilization for the whole company during the whole year made up 83.9%, which is 5.2 points higher than that established by the Business Plan.

 

Name of the product

Unit of measure

Annual production capacity

Output

% of capacity utilization

Ammonia production

tn

245 800

147 661

60,1

Ammonia-76

tn

420 000

385 080

91,7

Ammonium nitrate

tn

450 000

523 307

116,3

Urea

tn

270 000

245 782

91,0

Ammonium sulfate

tn

294 000

233 263

79,3

LDAN

tn

60 000

70 185

117,0

Weak nitric acid .

tn

662 000

496 810

75,0

 

Main reasons of nonfulfillment of the production assignments and reduction of production volume growth rate compared to last year are the following:

- lack of ammonia and carbon dioxide for the production of urea due to the unloaded operation of the Ammonia-76 unit due to the low pressure of natural gas in January and February;

- lack of shipment of commercial ammonia for export.

 

3.   Production of consumer goods.

 

In 2021, the company produced consumer goods in the amount of UZS 7 645.2 million, which is 0.3% of the total production. The task for the production of consumer goods was fulfilled by 205.0%, the growth rate compared to last year made 200.2%.

The main volume of consumer goods:

 

Name of the product

Unit of meas.

Quantity

Amount (UZS million)

Liquid carbon dioxide

tn

2 831

5685,6

Liquid mineral fertilizers (UAM)

tn

1 177

1 472,4

Magnesium sulfate in a pack of 25 kg

tn

96

290,4

Dry ice

tn

105

246,2

Magnesium nitrate (25 kg each)

tn

20

53,5

Compressed oxygen

tn

21

40,2

Other consumer goods (used for our own needs)

 

 

-143,1

 

4.     Technical condition of fixed assets.

 

For 2021, fixed assets were put into operation in the amount of UZS 44 604.2 million. The depreciation of the company's fixed assets increased over the year from 76.0% at the beginning of the year to 77.9% as of January 1, 2022.

The cost of major repairs of fixed assets for the year amounted to UZS 86 843.1 million, including:

machines and equipment – UZS 73 436.1 million,

buildings and facilities – UZS 8 733.5 million,

transportation – UZS 4 673.5 million.

 

5.     Development of new types of products, implementation of production localization projects.

 

According to the “List of production localization projects for 2020-2021 approved by the Chairman of the Board of JSC Uzkimyosanoat”, JSS “MAXAM-CHIRCHIQ” produced localized products in the amount of UZS 158 762.4 million in 2021, with a plan of UZS 88 230.1 million, the implementation amounted to 179.9%.

Produced in kind:

 

Name of the product

Unit of meas.

Production

Sale

 

Used for own needs

Modified porous nitrate

thousand tons

4,9

4,9

 

Carbamide with sulfur -magnesium trace elements

thousand tons

68,9

68,9

 

Magnesium nitrate

thousand tons

0,1

0,01

 

Anti-caking agent for ammonium nitrate

thousand tons

0,16

 

0,16

LDAN solution

thousand tons

13,3

13,3

 

Nanometric zinc oxide

thousand tons

0,06

 

0,06

Solid carbon dioxide

thousand tons

0,13

0,12

0,01

Water Soluble NPK Fertilizers

thousand tons

0,01

 

 

 

In total, under the Localization Program, products were sold in the amount of UZS 150,776.5 million including exported in the amount of USD 7.8 million.

 

6.   Sales of finished products.

 

The shipment of mineral fertilizers in 2021 was carried out in accordance with the Forecast parameters for the production and sale of mineral fertilizers, approved by the Prime Minister Advisor of the Republic of Uzbekistan A. Sultanov. Mineral fertilizers were put up for exchange trading according to the approved schedules.

In 2021 the following products were supplied to consumers:

 

Item

 

Unit of meas

 

Sale

Total

 

including

exchange trading

export

Ammonium nitrate

tn

518 746

457 624

61 122

Urea

tn

253 666

149 273

104 393

Ammonium sulfate

tn

239 604

183 789

55 815

 

The following chemical products were also supplied:

42 802 tons of Ammonia were shipped,

Weak nitric acid (mng) - 25,909 tons, including for export - 2,283 tons,

Sulfuric acid - 3,290 tons.

 

 

7. Export and import.

 

For 2021, the following products were exported:

Item

Unit meas

Q-ty

Amount, USD thous.

Ammonium nitrate

tn

61 121,5

15 072,0

Urea

tn

104 393,1

29 949,0

Ammonium sulfate

tn

55 815,4

7 756,8

Weak nitric acid (nat)

tn

3 974,0

853,9

LDAN

tn

52 230,7

10 891,4

Carbon dioxide

tn

268,6

50,5

 

In total, products worth USD 64 574.5 thousand were exported, the set target in the amount of USD 56 741.7 thousand was fulfilled by 113.8%.

The share of export revenues in the total net sales amounted to 30.6%.

Import of material and technical resources for 2021 amounted to USD 14 640.5 thousand, including foreign currency funds were used for:

- raw material for production of outputs - USD 2 377.7 thousand;

- process equipment - USD 1 716.7 thousand;

- components and spare parts - USD 6 935.1 thousand;

- services of an industrial nature - USD 3 611.1 thousand.

Of the total amount, imports for the implementation of the Technical Audit program - the replacement of obsolete and physically worn out equipment (according to ПП №2692 dated 22.12.2016) amounted to USD 739.2 thousand.

 

8.     Economic indicators of production.

 

In 2021, the enterprise sold products in the amount of UZS 2 191.9 billion and received profit before tax of UZS 480.9 billion, after taxes, net profit amounted to UZS 362.5 billion. Product profitability in terms of net profit made 16.5%.

Actual expenses for the period amounted to UZS 517.9 billion, exceeding the planned amount by UZS 225.5 billion, including due to:

- increase in costs for shops without production (during the period of overhaul and shutdown due to lack of gas supply) - UZS 8.9 billion;

- payment of bonuses based on the results of work for the year in accordance with the Collective Agreement - UZS 15.6 billion;

- accrual of the reserve for labor holidays - 40.0 billion UZS;

- accrual of a reserve for doubtful debts - 211.3 billion UZS.

The amount of the overspending is partially offset by savings on other items of expenses of the period.

The balance of expenses and incomes on financial activities amounted to UZS 1 101.7 mln., expenses on financial activities - UZS 15 308.1 mln., income - UZS 14 206.4 mln.

 

9.     Financial state.

 

The financial state of the Company has significantly improved.

Over the year, accounts receivable decreased by UZS 15 357.6 mln. and as of 01.01.2022 amounted to UZS 144 468.5 mln., incl. overdue UZS 8,030.2 million, in addition, the debt of JSC “Uzsanoatexport” in the amount of UZS 9,201.5 million and TJSC “Uzagrokimyohimoya” in the amount of UZS 35 769.6 million was assigned to the reserve for doubtful debts.

From total receivables:

 

 

Receivables

Overdue debt

Intradepartmental

UZS mln.

59 910,5

 

Other debtors

UZS mln.

84 558,0

8 030,2

 

 Accounts payable for the year decreased by UZS 67 257 mln. and as of 01.01.2022, amounted to UZS 90 358.6 mln., incl. overdue - UZS 3 347.9 mln.

Main debts:

 

 

Accounts payable

Overdue debt

Wage arrears

UZS mln.

21 858,7

-

Debt to the budget

UZS mln.

48 292,2

-

Debts to state trust funds

UZS mln.

3 358,7

-

 

The balance between accounts receivable and accounts payable as of 01.01.2022 amounted to UZS 54 109.9 mln.

 

 

 
 
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