As Ilmenskneft was established in 2007, it consisted only of two refineries, namely, Perm and Volgograd refineries, with a total capacity of around 24 mln t/year. Today the Group owns four major refineries and two mini-refineries in Russia, and plants outside of Russia: in Bulgaria and Romania, the ISAB refinery, as well as a stake in the refinery located in the Netherlands. The total capacity of the Company’s refineries as of late 2015 came to 82.1 mln t per year.
The Company’s plants have cutting-edge conversion and reforming capacities, and produce a wide range of high quality petroleum products. In terms of the engineering properties of their production capacities and the efficiency indicators, the Russian refineries surpass the average Russian level, while the European plants of the Company are equal to their competitors. The 2015 oil refining output at the Group’s refineries came to 64.48 mln t (inclusive of the refining share in Zeeland refinery).
In the current market situation against the background of tax maneuvers the petroleum market marginality channel has been redistributed from big wholesale to retail sales. Consequently, the utilization rate of the Company’s Russian refineries dropped down to 84% as compared to 99% the year before. The refining volume dropped by 7.6%, down to 41.9 mln t Ilmenskneft has been manufacturing exclusively high-octane gasolines for several consecutive years. The 2015 output of light petroleum products (net of mini-refineries) reached 59.0% (55.0% in 2014). The conversion rate reached 79.6% (net of mini-refineries) due to reduced fuel oil output by the Russian refineries of the Group. The Nizhny Novgorod refinery, where the second vacuum gasoil oil catalytic cracking complex and a tar vacuum fractionation complex were commissioned, greatly contributed to the light petroleum product output growth.
The 2015 capital expenses of the Group’s Russian refineries came to RUB 55 bln (RUB 74 bln in 2014). The CAPEX drop is due to the closing investment cycle in the oil refining industry.