Metafrax Chemicals

Performance indicators

2023

Metafrax Chemicals has occupied a third of the Russian methanol market

Metafrax Chemicals published its 2023 report, according to which its share in the Russian methanol market in 2023 reached 31%, an increase from 25% compared to the previous period. The company has strengthened the position of the second largest manufacturer in the country. Read more here.

Revenue growth by 7.2% to 28.9 billion rubles

One of the largest methanol producers in Russia, Metafrax Chemicals, completed 2023 with revenue growth of 7.2% compared to 2022 - up to 28.9 billion rubles. Such RAS data were disclosed by the company at the end of March 2024.

According to Interfax with reference to this reporting, the net profit of Metafrax Chemicals in 2023 reached 2.3 billion rubles, which is 4.7 times less than a year earlier. Revenue from the sale of finished products for export in 2023 rose by 8.3% on an annualized basis - to 11.1 billion rubles. The share of exports in sales of finished products increased from 38.7% in 2022 to 39.2% a year later.

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Unsplash

About 35.5% of the revenue of Metafrax Chemicals JSC in 2023 came from the supply of methanol. Urea accounted for 29.8% of the company's revenue.

It also follows from the company's materials that the cost of sales in 2023 increased by a third and exceeded 16.83 billion rubles. Gross profit decreased by 16.6%, to $12.06 billion. Profit from the sale more than halved - to 5.18 billion rubles.

The long-term liabilities of Metafrax Chemicals JSC in 2023 decreased to 38.3 billion rubles from 45.7 billion rubles in 2022, short-term liabilities increased from 3.9 billion to 13 billion rubles. Accounts payable decreased from 2.6 billion to 1.5 billion rubles, accounts receivable - increased from 2.7 billion to 5.8 billion rubles.

As of the end of 2023, Metafrax Group is one of the leaders in the production of methanol and formalin in Russia. The chemical division of the group includes, in particular, the parent enterprise Metafrax Chemicals, the production of formaldehyde and synthetic resins LLC Methadinea (Perm Territory and Moscow Region), Moscow Region JSC Karbolit. The group includes trading, service, engineering and technological enterprises.^[1]

History

2024

Roshim bought Metafrax Chemicals

In October 2024, it became known that Roskhim JSC acquired 96.9% of the shares of Metafrax Chemicals JSC, one of the largest producers of methanol and formalin in Russia, for ₽14,7 billion. The deal took place as part of an auction organized by the Federal Property Management Agency to sell a state stake in the enterprise, which became state-owned in 2023.

According to Interfax, information on the results of the auction was published in the state information system "Torga." Roskhim JSC became the only participant in the auction, as a result of which the lot was sold at an initial price. The acquired stake included 284 599 228 ordinary shares of Metafrax Chemicals JSC, which is 96.9% of the company's authorized capital.

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Metafrax

According to the terms of the transaction, the sale and purchase agreement must be concluded within five working days from the date of summing up the auction. The decision to sell shares was made by the Russian government in September 2024 in order to attract investment, stimulate the development of the stock market and modernize the economy.

The history of the transition of Metafrax Chemicals to state ownership began with the fact that the Prosecutor General's Office of the Russian Federation appealed to the Arbitration Court of the Perm Territory with a lawsuit declaring the results of the privatization of the company illegal. As a result of the litigation, the claims of the Prosecutor General's Office were fully satisfied, despite attempts by the former owners to challenge the decision in the appeal and cassation procedures.

By October 2024, Metafrax Chemicals is a key asset of Metafrax Group, which also includes the production of formaldehyde and synthetic resins of LLC Methadinea in the Perm Territory and the Moscow Region, as well as the Moscow Region Carbolit JSC. The group includes trading, service and engineering enterprises.^[2]

Transition under the control of Roshima

Since February 1, 2024, Roshim has become the management company for Metafrax Chemicals JSC. At the same time, Metafrax Chemicals will retain the authority of the management organization in relation to its subsidiaries.

Having become the managing organization of Metafrax Chemicals JSC, Roshim received the right to act on behalf of the company without a power of attorney. This step is aimed at ensuring the further successful implementation of the production and investment plans of Metafrax Chemicals JSC, Roskhim said. The Holding will continue to perform its obligations to counterparties, creditors and employees in full. Albert Khudaybirdin became the executive director of Metafrax.

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Roshim

Metafrax is one of the largest Russian producers of methanol and its derivatives. The enterprise is strategically important for the domestic industry, therefore, the task of Roshim, as a management organization, due to the maximum optimization of technological processes, to build a more efficient production model, which will increase production, will contribute to increasing the client base, - said the head of Roshim Eduard Davydov, whose words are quoted by the press service of the holding.

Metafrax Group specializes in the gas chemistry industry, is one of the largest producers of methanol and its derivatives in Russia. By February 2024, the company produces more than 12 types of chemical products, including formaldehyde, melamine, as well as synthetic resins of a wide range of applications. The group's production facilities are concentrated in Metafrax Chemicals (large and medium-tonnage chemistry) and Methadinea (synthetic resins), production sites are located in the Perm Territory and Moscow Region.^[3]

2023

The court recovered 94.2% of Metafrax Chemicals shares in favor of the state

In September 2023, the Arbitration Court Perm Territory recovered in favor states of 94.2% of the shares of the once largest RUSSIAN FEDERATION methanol producer Metafrax Chemicals.

According to TASS, in the interests of the Russian Federation, the claim of the Deputy Prosecutor General of Russia was satisfied. The judge announced the decision, which assumes that in favor of the Russian Federation "state property was claimed in the form of ordinary shares of Metafrax Chemicals JSC in the amount of 281 million 672 thousand 929 pieces from someone else's illegal possession of Mediaholding JSC, 802 thousand 299 pieces - from someone else's illegal possession of Metafrax Trading OJSC. The court order took effect immediately.

In the interests of the Russian Federation, the claim of the Deputy Prosecutor General of Russia was satisfied

The court agreed with the arguments of the Prosecutor General's Office that the events that took place 30 years ago were not privatization, since this procedure could not be carried out in relation to the plant, which at that time was called GPO Methanol. The company was not subject to privatization on the basis of the laws that existed then, since it produced poison - methanol. Nevertheless, the then director of the chemical plant Anatoly Ozhegov illegally transferred the shares to the management of businessman Dmitry Rybolovlev in 1993. The consolidation of the company's shares was completed only in 2021, so the statute of limitations does not apply.

Metafrax Group, which includes the companies, said it did not consider the court's decision justified. The group stressed that Metafrax Chemicals JSC "strictly adheres to the need to comply with the court decision" and is ready to cooperate with state bodies. The company continues its work, does not allow production stops, ships products in a timely manner and fulfills its obligations to counterparties, creditors and employees, the Metafrax Group press service added^[4]

Arrest of shares by the court

On July 31, 2023, the Prosecutor General's Office of Russia sent a lawsuit to the Arbitration Court of the Perm Territory to declare illegal the results of the privatization of Metafrax Chemicals JSC (part of Metafrax Group), one of the largest producers of methanol and formalin in Russia and Europe (used in the manufacture of synthetic resins).

According to Interfax, the defendants in the process are Togliattikhimbank JSC, Metaholding JSC (the main owner of Metafrax Chemicals JSC) and Metafrax Trading LLC (part of Metafrax Group). The Prosecutor General's Office asks the court to claim in favor of the state ordinary shares of Metafrax Chemicals JSC, write them off from the personal accounts of the defendants for crediting to the account of the Federal Property Management Agency. In addition, the plaintiffs demand to seize all movable and immovable property of the company (with the exception of cash), prohibit the management bodies from making decisions on the payment of dividends and remuneration to members of the board of directors, as well as "perform other actions that mean the withdrawal of property."

The Prosecutor General's Office sent a lawsuit declaring illegal the results of the privatization of Metafrax Chemicals JSC

The management company Metafrax Group claims that there are documents confirming the legality of the privatization procedure, which took place under the full supervision and control of the State Property Committee of the Russian Federation. The company has filed an objection to the application to secure the claim and intends to "clearly defend its position within the legal framework."

However, the court, as interim measures, arrested the shares of Metafrax Chemicals owned by Metaholding (281 672 929 shares), Togliattikhimbank (2,124,000 shares) and Metafrax Trading (802,299 shares). At the same time, the plaintiffs were denied the seizure of property. The court also attracted the Federal Property Management Agency, the Ministry of Property Management and Urban Planning Activities of the Perm Territory, Metafrax Chemicals, Registrar Intrako JSC and National Settlement Depository JSC to participate in the proceedings as third parties^[5]

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