- Volga Group
Transcription
- Volga Group
Volga Group is a privately-held investment group that manages investments in the logistics, infrastructure, financial services and consumer goods sector on behalf of its main shareholder, Gennady Timchenko. The Group invests strategically in areas of the Russian market where it sees opportunities for long-term growth and development, and looks to introduce best management practices and cutting edge production technologies at its companies. Profile Investment group Volga Group is committed to the positive development of business culture in Russia, and achieves this by implementing the highest international standards of corporate and operational management. The result is beneficial not only to Volga Group itself – increasing its value growth and assets – but also helps to increase the competitiveness of Russian companies on international markets. Volga Group started out as an oil trading and logistics businesses, and retains many of its investments in the energy sector to this day. The Group also sees great potential for future growth in Russian infrastructure, and holds stakes in a number of companies in this field, including Stroytransgaz, Gunvor Group, Transoil, ARKS, SK MOST, and Sakhatrans. Volga Group’s construction portfolio includes roads, bridges, ports, metro lines, power lines and railroad logistical centres. The Group’s management believes that creating more advanced infrastructure in Russia is the key to improving growth and economic development, and will also, in turn, improve the quality of life of Russian citizens. 2 Main Shareholder Gennady Timchenko Chairman Chlodwig Reuter Board Members Sven Olsson Paul Mousel Investment and Management Advisor Volga Advisors *consolidated stake with Gunvor Group 4 5 Gennady Timchenko, founder and main shareholder of Volga Group: Russia has a supportive business environment. The country’s wealth of natural resources, strong growth prospects and competitive tax legislation make it one of the most attractive countries in Europe for doing business. Volga Group’s companies help Russia grow by creating jobs, paying taxes and developing infrastructure to benefit the whole country. I have always had an interest in the development of infrastructure, and admire companies that do so. I invest in businesses that are key to the development of the country as a whole and not just the interests of the Group, such as the construction of pipelines, roads, railways, bridges and tunnels. 6 7 Volga Group owns stakes in Russia’s largest independent natural gas producers – NOVATEK (23%) and Petromir (50%), which operates the Angaro-Lenskoye gas deposit in Irkutsk (Siberia) – and as part of Gunvor Group also owns 60% of Kolmar, a coal miner and processor. NOVATEK accounts for about 9% of Russia’s total natural gas production Energy sector Energy is a key sector of the Russian economy. The sustainable development of the sector is of great importance to both national security and to Russians’ quality of life. and over 16% of gas supplied via the country’s Unified Gas Supply System.* NOVATEK operates the Yurkharovskoye, Vostochno-Tarkosalinskoye, Khancheiskoya and other natural gas deposits in the Yamalo-Nenets Autonomous District, where it is also building a large LNG plant. The Angaro-Lenskoye gas field operated by Petromir has estimated reserves of more than 1.2 trillion tonnes. The Group holds all the required permits licences to develop the site further. Kolmar Group refines and produces high-quality coking coals at deposits south of Yakutia. The Group is fully licensed to develop and extract coal from these fields, which hold deposits of more than 1 billion tonnes. Kolmar is constructing new extraction and processing facilities at the Denisovsky and Inaglinsky mines. Once complete, these facilities will increase the company’s annual output to 12 million tonnes. Modern logistics and improved infrastructure will help the the region continue developing as one of Russia’s most important and productive mining clusters. *Data from CDU TEK Group, 2012 8 9 12 394 m BOE NOVATEK proven reserves (2012) 1,221 tr m 3 Reserves of Angaro-Lenskoye gas field > 1 bn tonnes Kolmar coal reserves 10 Gennady Timchenko, founder and main shareholder of Volga Group: While European demand for gas and other energy supplies has fallen due to the financial crisis, China needs about 1.5 billion tonnes of coal a year. Russian coal reserves are capable of satisfying this demand. We can build roads and pipelines that will enable us to supply the local market with energy and other resources. We will of course continue operating in Europe, but we believe that the future belongs to Asia. 11 Petrochemicals have wide application across all sectors of industry. Volga Group owns 37.7% of SIBUR, which buys associated gas and liquid hydrocarbon feedstock from oil companies and develops them into fuels and a wide range of other petrochemicals, including base Petrochemicals polymers, synthetic rubbers, plastics, organic synthesis products and semi-finished materials. SIBUR’s investment projects include a polypropylene production complex in Tobolsk that will be one of the largest in the world when it is completed; a plant in Nizhny Novgorod region that develops PVC materials; and a liquefied hydrocarbon gas and naphtha terminal at the 27 5,2 m tonnes 622,000 tonnes Annual gas fractionation production facilities Annual synthetic rubber output port of Ust-Luga. Completion of these flagship projects will help Sibur achieve its long-term goals. Sibur is Russia’s largest processor by volume of base chemicals obtained from associated gas, and the country’s largest petrochemicals ~19 bn m 3 Annual associated gas processing 12 475,000 Annual base polymer output tonnes 971 600 tonnes Annual output of organic synthesis products company. Russia still burns large amounts of flare gas, which is harmful to the environment and leads to a lower overall tax loss for the state budget. 13 The energy industry is more than just exploration, extraction and processing. Trading and logistics The international competitiveness of Russian fuels depends to a large degree Torbjörn Törnqvist, co-owner and CEO of Gunvor: Transoil is a transport and logistics group that holds 20% market share Gunvor is a leading global trading company. Russia is a strategically important market for us. We have a clear vision for the future and are planning for the long term. We believe in Russia and in our strong position in the Russian market. We will continue to create added value for the Russian oil sector and other industries. on effective trading and a strong logistical chain delivering products to end users. for the transportation of oil and oil products. Volga Group’s founder and shareholder owns 80% of Transoil. The group has 10 offices across Russia and owns one of the country’s largest rail and locomotive fleets, as well as special locomotive crews and maintenance units to ensure that everything runs smoothly. Gunvor, the international commodities trading group 44% of which is owned Igor Romashov, Chairman of Transoil: Railway transport can stimulate real economic growth only if there is investment in infrastructure and a free market for transport and logistics. We have already seen how competition enhances the quality of goods and services and can reduce costs. New roads will help develop industries in Russian regions that have hitherto not enjoyed this level of infrastructure, and modern equipment will ensure that all processes meet modern safety and environmental standards. 14 by Gennady Timchenko, works with the largest Russian and global energy companies in more than 35 countries, and actively invests in infrastructure and logistics projects including ports, terminals and pipelines. Volga Group transports its energy supplies to international markets securely thanks to its investments in large port terminals. The company enjoys a competitive edge over its Russian competitors due to the strategic locations of its outlets and high-tech equipment. Port infrastructure Gunvor Group owns 100% of the oil products terminal and 50% of the oil terminal at the port of Ust-Luga on the Baltic Sea. The Group also owns 50% of the Novorossiysk oil terminal on the Black Sea. The Ust-Luga terminal was developed by Gunvor’s subsidiaries Rosneftbunker and Neva Pipeline Company, which increased Russia’s export capabilities and meant that it was no longer necessary to transport oil via the Baltic States. Sakhatrans, a subsidiary of Volga Group, is constructing a coal and iron-ore terminal in Vanino District of Russia’s Far East. The terminal has a Konstantin Khamlay, CEO of Rosneftbunker and Neva Pipeline Company: Ust-Luga will use the latest technology and will allow us to process up to 20 million tonnes of heavy oil products and up to 10 million tonnes of light oil products every year. When the facility has reached full capacity, it will be the largest oil terminal of its kind in Russia, strategically placed to ship rail cargoes to Europe. projected annual capacity of 20 million tonnes. When it is completed, the port will become one of Russia’s largest coal export terminals to the Asia-Pacific region. 30 m tonnes Ust-Luga oil products terminal capacity 16 30 m tonnes Ust-Luga oil terminal capacity 20 m tonnes Sakhatrans terminal planned capacity 17 Infrastructure is a key growth driver for the Russian economy. A modern, high- Road-building quality road network with interregional routes and connections is a key factor in the development of industry and the Russian economy as a whole. Volga Group’s subsidiaries Stroytransgaz (80%), SK Vadim Gurinov, President of Stroytransgaz: MOST (25%) and GK ARKS are all involved in road-building. These companies currently have a number of large projects underway, We are constantly working to unlock the company’s potential and increasing value for our shareholders. We believe that Stroytransgaz will fulfil its potential and become the leader of this sector and the largest construction holding company in Russia. including the construction of a section of the M9 Baltia federal highway, connecting Moscow to the Baltic states, and the Molodogvardeyskaya transport junction in Moscow (Stroytransgaz, ARKS), a bridge connecting Vladivostok and Russky Island, and the construction of a unique, non-stop traffic Southern Ring Road motorway in Moscow to connect the west of the city to the southeast bypassing the congested centre (ARKS). 20,3 km Total length of railway and road bridges in Sochi District 18 3,1 km Length of the bridge between Vladivostok and Russky Island 17,5 km Total length of the new section of the Kozhukhovskaya Line of Moscow metro (SK MOST) 19 Stroytransgaz, 80% owned by Volga Group, develops infrastructure in the energy sector. The company has extensive expertise and works on large construction projects for oil and gas, power and petrochemical facilities. Stroytransgaz is one of Russia’s biggest construction companies and has large-scale projects both domestically and abroad. A key priority is construction projects to modernise the power industry – an important field Energy infrastructure Gleb Frank, board member of Stroytransgaz: given the increasing demand for electricity Russia. Stroytransgaz built power supply facilities for the fourth unit of the Kalininskaya nuclear power plant in Moscow, Volgograd and Tver regions, delivering an extra gigawatt of power to both Moscow and Volgograd regions. Further We want to create Russia’s largest construction company to compete with large international construction companies in America, Europe and Asia. Within five years, Stroytransgaz will be able to compete on both a domestic and international levels, catering to both developing and developed countries. construction projects in Rostov and Krasnodar regions will greatly increase the reliability of the power supply in the Southern Federal District. 582,6 km Length of power transmission lines to the fourth unit of Kalinin NPP 20 239 km Length of 500 kW power transmission lines from Rostov NPP to Tikhoretsk 94,6 km Length of power transmission lines from Leningrad NPP to Gatchina 82,1 km Length of power transmission lines from Leningrad NPP to Kingisepp 21 The Group’s asset portfolio includes controlling stakes in the Finnish business aviation operator Airfix Aviation (99%) and the new Russian companies Avia Group (74%) and Avia Group Nord (70%). Airfix Aviation provides a complete charter flight management service. Avia Group develops ground infrastructure for the Business Aviation Centre at Moscow’s Sheremetyevo International Airport, while Avia Group Nord operates Air transport domestic and international business aviation flights from St Petersburg’s Pulkovo-2 Airport. Another important part of Volga Group’s business is the development of infrastructure for business aviation. This includes the construction of high-class business terminals and the operation of business flights. 22 23 70 tonnes Total potential volume of salmon and trout breeding at the 29 areas belonging to Russian Sea 500 m litres Annual production capacity of Aquanika plant in Nizhny Novgorod region Insurance and financial services Consumer goods Volga Group’s interests in the insurance and financial To diversify its assets, Volga Group invests in companies in the Volga Group also owns a 30% stake in Russian services sector are German joint stock company consumer goods sector. The Group owns 100% of an innovative aquaculture group that is one of the largest SOVAG (49%), which provides services to corporate customers, and Russian company SOGAZ (12.5%), Aquanika, a large Russian producer of natural mineral suppliers of chilled and fresh-frozen fish in Russia. Commercial water under the same brand name and other non-alcoholic breeding of Atlantic salmon and trout in Karelia and Murmansk which insures clients from all areas. beverages. All these drinks are made using pure water from an regions has good growth prospects, and at full capacity will be underground sea. The company’s facility in Nizhny Novgorod able to meet 30% of Russian demand for red fish; at present, region has a total area of 124,000 square metres, and fish imported from Norway accounts for 90% of the Russian maximum annual output of 500 million litres of water and other red fish market. The group also owns an 8% stake in Bank Rossiya, which provides a full range of banking services for corporate and individual customers. 24 Sea, beverages. 25 Investing in sustainable growth 1987 1991 1997 In 1987, Gennady Timchenko joined 2007 2008 Luga. Gunvor also bought a 50% stake in the oil residue terminal at In 2010, Volga Group diversified its assets, investing in the construction of the business aviation terminal at Sheremetyevo International Airport (the Group owns 74% of Avia Group). In the same Russkoye Vremya, which Kirishineftekhimeksport, an export company established by year Volga Group acquired 100% of the Kirishi oil refinery. operates Aquanika, a producer of mineral water and non-alcoholic beverages. At the same time the Group invested in Geotech Holding, Four years later, in 1991, he established a leading company in the field of seismic exploration in Russia and the Urals Finland Oy to CIS. focus on the trading of oil and oil products. In 1997, Gunvor entered the global market. Gennady Timchenko 2011 In 2011, IGSS was established as a result of a merger of Russian assets between Geotech Holding, Integra and Schlumberger. Volga Group owns 13% of the new company. The private oil and oil product transportation company Transoil was established in 2003; today, 80% of its assets are owned by the In the same year, the Group acquired a 37.3% stake in Sibur, the founder and owner of Volga Group. largest Russian and Eastern European petrochemical company; a 30% stake in coal mining and processing company Kolmar (60% In 2007, the investment fund, Volga consolidated stake with Gunvor Group) and a 30% stake in Russian Resources, was fish producer and supplier Russian established to manage assets belonging to Gennady Timchenko. A year later, Gennady Timchenko acquired a 23% stake in the independent Russian gas producer, NOVATEK, and an 80% stake in the international construction company, Stroytransgaz. 26 terminal (100%) and oil terminal (50%) at the trading sea port of Ust- the port of Novorossiysk, which was then under construction. 2010 owns 44% of the company. 2003 2009 In 2009, Gunvor invested in the construction of the oil products 2012 Sea. In 2012, Volga Group acquired 89% of Sakhatrans, which is building coal and iron ore concentrate terminals in Vanino District, and 12.5% of SOGAZ, a leading Russian insurer. 27 Volga Group www.volga-resources.ru Volga Group www.volga-resources.ru 2