A meeting of the Board of Directors of Ugra Timber Holding chaired by the Vice-Chairman of the Government of the autonomous region responsible for the issues of wood and agricultural industry Mr. Valery Bobylev has recently taken place in Khanty-Mansyisk.
In particular, preliminary results of administration of the company’s budget for 2006 and the main financial document of the Holding — consolidated budget for 2007.
According to the Deputy Director for Economy and Finance of the Ugra Timber Holding Mr. Mikhail Nanivsky, last year the Company managed to increase its scheduled financial results by 100 million rubles. This was achieved mostly due to enhanced quality control at the places of production, retention of expenses at the level of 2005, and increase of prices for the products. Moreover, the Holding facilities in the Sovetsky Region and in Nyagan introduced a modern technology of short log logging on an industrial scale.
As the General Director of Ugra Timber Holding Mr. Yuri Kraev has mentioned, last year heavy frosts lead to reduction of sawn timber output production in Russia by 30 - 50%. Despite of the difficult climate conditions, one of the facilities of the Holding - “Ugra Saw Mills” - managed not only to keep the volume of production at the level of 2005, but also to show 10% increase. Use of modern logging equipment allows the mills to perform logging works the year round.
Moreover, according to results of 2006, Ugra Timber Holding has proved itself in relations with credit and financial establishments as a borrower of high lending capacity (under the calculation method of Sberbank of the Russian Federation).
Mr. Mikhail Nanivsky underlines, that the scheduled gross earnings are 100% achieved and constitute 1,38 billion rubles. The Holding’s profit for 2006 is expected to be 52,4 million rubles, which is 38,9 million more than the initially planned indicators. The net cost of products was reduced by 10%. Preliminary amount of net assets of the Holding for the past year will make 3,47 billion rubles. According to Mikhail Nanivsky, in 2007 the management of the Holding has the following plans for the results of production activities: sales revenues will constitute 1,6 billion rubles, which is 373 million rubles more than in 2006. Profitability of sawing is expected to be at the level of 3,24 %.
Following the results of consideration of the Holding’s consolidated budget for 2007, the Board of Directors has set a strategic task for the management of the Holding: in the current year, maximally reduce losses of the initial stage of implementation of investment projects and improve financial results by 10,3 million rubles.
Press Service of the Governor of Ugra |
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