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sales and products
sales and products
«SIBUR» LLC is the managing organization of PJSC «SIBUR Holding».
117218, Moscow, Krzhizhanovsky st., 16/1
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Subscribe to newsMoscow, 28 September 2015. PAO SIBUR Holding, an integrated gas processing and petrochemicals company, today published its operational and financial results for the three and six months ended 30 June 2015 in accordance with International Financial Reporting Standards (IFRS).
Operational highlights
Financial highlights
“In the first half of 2015, SIBUR delivered strong financial results despite the challenging environment, which proves the strategy of building a vertically integrated company right. Starting from the second quarter of 2014, our feedstock & energy business have been affected by the collapsed pricing for the majority of energy products on the back of lower oil prices. At the same time, the expansion of our petrochemical business helped to partly mitigate the downward profitability trend in our feedstock & energy segment”, - commented SIBUR’s CEO Dmitry Konov.
Operational Results
In the first half of 2015, SIBUR’s gas processing plants (GPPs) processed 10.4 billion cubic metres of APG, an increase of 0.7% year-on-year. Production of natural gas decreased by 1% year-on-year to 8.9 billion cubic metres. Raw NGL fractionation volumes increased by 26.5% year-on-year to 3.8 million tonnes on the back of the fractionation capacity expansion in Tobolsk and the expanded access to the additional volumes of raw NGL via the newly launched pipeline.
Natural gas sales volumes increased by 16.3% year-on-year to 8.9 billion cubic metres on the back of consolidation of OOO Yugragazpererabotka. External sales of LPG rose 15.8% year-on-year to 2.03 million tonnes as a result of the fractionation capacity expansion in Tobolsk and the expanded access to the additional volumes of raw NGL via the newly launched pipeline. Naphtha sales volumes decreased by 49.6% year-on-year to 580.6 thousand tonnes primarily due to the termination of low-margin trading activities. Starting 2015, SIBUR changed the terms of cooperation with its naphtha trading suppliers and ceased purchases of the product for resale, instead providing transshipment services via the Ust-Luga transshipment facility to the partners. External sales of raw NGL decreased by 85.5% year-on-year to 49.9 thousand tonnes as additional volumes of raw NGL were fully utilised internally on higher fractionation volumes following the capacity expansion in Tobolsk.
SIBUR increased sales volumes of the majority of its petrochemical products. Sales volumes of plastics and organic synthesis products increased by 27.2% year-on-year to 472.6 thousand tonnes. Sales volumes of basic polymers increased by 23.3% year-on-year to 375.5 thousand tonnes. Sales volumes of synthetic rubbers increased by 19.2% year-on-year to 212.5 thousand tonnes attributable to increase of production of both commodity and special rubbers, as well as TPEs. Sales volumes of intermediates and other petrochemical products increased by 58.5% year-on-year to 281.1 thousand tonnes, inter alia due to higher revenue from sales of ethylene following initiation of ethylene supplies to RusVinyl.
| Operating results | |||
|---|---|---|---|
| Six months ended 30 June | Change | ||
| Tonnes, except as stated | 2015 | 2014 | % |
| Processing and production volumes | |||
| APG processing (thousand cubic metres) | 10,424,657 | 10,357,132 | 0.7% |
| Natural gas production (thousand cubic metres) | 8,907,047 | 8,996,186 | (1.0%) |
| Raw NGL fractionation | 3,780,341 | 2,989,568 | 26.5% |
| Plastics and organic synthesis products | 523,847 | 415,000 | 26.2% |
| Basic polymers | 416,403 | 301,594 | 38.1% |
| Synthetic rubbers | 221,405 | 183,825 | 20.4% |
| Intermediates and other chemicals | 2,467,509 | 1,945,573 | 26.8% |
| Sales volumes | |||
| Natural gas sales volumes (thousand cubic metres) | 8,551,695 | 7,354,203 | 16.3% |
| LPG sales volumes | 2,030,027 | 1,752,914 | 15.8% |
| MTBE, other fuels & fuel additives sales volumes | 298,506 | 292,514 | 2.0% |
| Petrochemical products sales volumes | 1,341,642 | 1,031,689 | 30.0% |
| Plastics and organic synthesis products | 472,569 | 371,615 | 27.2% |
| Basic polymers | 375,496 | 304,467 | 23.3% |
| Synthetic rubbers | 212,476 | 178,281 | 19.2% |
| Intermediates and other chemicals | 281,101 | 177,326 | 58.5% |
Financial results
In the first half of 2015, our revenue increased by 5.6% to RR 181,397 million compared to RR 171,712 million in the first half of 2014. A 44.9% year-on-year increase in revenue from sales of petrochemical products to RR 86,841 million is primarily attributable to higher PP production following a year-on-year increase in Tobolsk-Polymer Plant average capacity utilisation rate that resulted in a 52.6% increase in sales of basic polymers. In the first half of 2015, our revenue from sales of plastics and organic synthesis products increased by 45.3% year-on-year. The increase was primarily attributable to expanded production of PET and BOPP-films, as well as increase in glycols production. Additionally, our revenue from sales of synthetic rubbers increased by 29.2% on higher capacity load due to improved economics on the Russian rouble depreciation and lower feedstock prices, as well as completion of product homologation with key clients.
Our revenue from sales of energy products decreased by 18.6% year-on-year to RR 87,459 million from RR 107,394 million in the corresponding period of 2014. The decrease was primarily attributable to lower prices for feedstock & energy products that was partly compensated by Russian rouble depreciation, higher LPG production following the launch of new transportation and fractionation capacities, and higher sales of natural gas.
In the first half of 2015, SIBUR recorded a 30.6% increase in EBITDA, which was driven by almost fivefold growth in the EBITDA of our petrochemicals segment and partially offset by a decrease in the contribution of our feedstock & energy segment. We recorded the highest EBITDA margin of 35.6% for the Group and our petrochemicals segment demonstrated 31.4% EBITDA margin.
Our adjusted profit[i] increased by 11.7% to RR 34,307 million in the first half of 2015 from RR 30,727 million a year earlier.
Our capital expenditures increased by 15.1% to RR 30,537 million in the first half of 2015 from RR 26,520 million a year earlier.
| Financial results | |||
|---|---|---|---|
| Six months ended 30 June | Change | ||
| RR millions, except as stated | 2015 | 2014 | % |
| Revenue (net of VAT and export duties) | 181,397 | 171,712 | 5.6% |
| Energy products | 87,459 | 107,394 | (18.6%) |
| Petrochemical products | 86,841 | 59,930 | 44.9% |
| Other | 7,097 | 4,388 | 61.7% |
| EBITDA | 64,622 | 49,486 | 30.6% |
| EBITDA margin, % | 35.6% | 28.8% | |
| Profit for the reporting period | 21,331 | 75,691 | (71.8%) |
| Adjusted profit(i) | 34,307 | 30,727 | 11.7% |
| Operating cash flows before working capital changes | 63,460 | 49,281 | 28.8% |
| Net cash used in investing activities, including | (102,288) | (51,420) | 98.9% |
| Capital expenditures | (30,537) | (26,520) | 15.1% |
Borrowings
As of 30 June 2015, our total debt amounted to RR 254,067 million, an increase of 23.2% from RR 206,294 million as of 31 December 2014. The increase was primarily attributable to new borrowings to fund the second tranche for the acquisition of a 49% stake in OOO Yugragazpererabotka, revaluation of debts and new borrowings for the continuing capital expenditures on ZapSibNeftekhim (ZapSib-2), including the first drawdown of EUR 115 million out of EUR 1,575 million ECA-backed committed credit line for the project.
Our net deb(ii) increased by 31.7% to RR 235,203 million as of 30 June 2015 from RR 178,627 million as of 31 December 2014.
| Borrowings | |||||
|---|---|---|---|---|---|
| RR millions, except as stated | As of 30 June 2015 | As of 31 December 2014 | Change, % | ||
| Total debt | 254,067 | 206,294 | 23.2% | ||
| Net debt(ii) | 235,203 | 178,627 | 31.7% | ||
| Borrowings by scheduled maturities | |||||
|---|---|---|---|---|---|
| RR millions, except as stated | As of 30 June 2015 | % of total borrowings | As of 31 December 2014 | % of total borrowings | Change, % |
| Due for repayment: | |||||
| Within one year | 92,983 | 36.6% | 56,240 | 27.3% | 65.3% |
| Between one and two years | 18,448 | 7.3% | 31,500 | 15.3% | (41.4%) |
| Between two and five years | 125,114 | 49.2% | 105,062 | 50.9% | 19.1% |
| After five years | 17,522 | 6.9% | 13,492 | 6.5% | 29.9% |
| Total debt | 254,067 | 100.0% | 206,294 | 100.0% | 23.2% |
Full version of the Consolidated Interim Condensed Financial Information (unaudited) as of and for the three and six months ended 30 June 2015 in accordance with International Financial Reporting Standards (IFRS) is available on our website (http://investors.sibur.com/results-centre/financial-results.aspx).
(i)Profit adjusted for one-off non-cash factors, such as gain on consolidation of OOO Yugragazpererabotka and charges related to the equity-settled share-based payment plans
(ii)Net debt is calculated as total debt less cash and cash equivalents and bank deposits.
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