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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, 15 May 2018. PAO SIBUR Holding, an integrated gas processing and petrochemicals company publishes its operational and financial results for the three months ended 31 March 2018 in accordance with International Financial Reporting Standards (IFRS).
Highlights
Operational results
In the first quarter of 2018, SIBUR’s gas processing plants (GPPs) processed 5.6 billion cubic metres2 of APG, an increase of 2.3% year-on-year. As a result, production of natural gas totaled 4.8 billion cubic metres2.. Raw NGL fractionation volumes increased by 9% year-on-year to 2.2 million tonnes1.
In the first quarter of 2018, SIBUR’s sales volumes of liquid hydrocarbons increased by 18.3% year-on-year and totaled 1.5 million tonnes, while natural gas sales volumes increased by 1.9% year-on-year and totaled 4.5 billion cubic metres.
In the first quarter of 2018, polyolefin sales volumes increased by 3.2% and reached 210 thousand tonnes, while sales of plastics and organic synthesis products increased by 2.2% to 197 thousand tonnes year-on-year on higher capacity load.
| Operating results | |||
|---|---|---|---|
|
Three months ended 31 March | Change | ||
| Thousand tonnes, except as stated | 2018 | 2017 | % |
| Processing and production volumes | |||
| APG processing2 (million cubic metres) | 5,582 | 5,457 | 2.3% |
| APG processing, SIBUR's share3 (million cubic metres) | 5,450 | 5,326 | 2.3% |
| Natural gas production2 (million cubic metres) | 4,844 | 4,738 | 2.2% |
| Natural gas production, SIBUR's share3 (million cubic metres) | 4,745 | 4,638 | 2.3% |
| Raw NGL fractionation1 | 2,246 | 2,060 | 9.0% |
| Raw NGL fractionation, SIBUR’s share | 1,946 | 1,760 | 10.6% |
| Sales volumes | |||
| Natural gas (million cubic metres) | 4,521 | 4,437 | 1.9% |
| LPG Naphtha | 1,305 202 | 1,067 207 | 22.3% (2.5%) |
| Petrochemical products, including | 883 | 930 | (5.0%) |
| Polyolefins (PP and PE) | 210 | 203 | 3.2% |
| Plastics and organic synthesis products | 197 | 193 | 2.2% |
| Elastomers | 124 | 130 | (4.6%) |
| Intermediates and other chemicals | 130 | 144 | (10.0%) |
Financial results
In the first quarter of 2018 our revenue increased by 11.9% year-on-year to RR 120 billion on the following dynamics across business segments:
EBITDA increased by 4.8% due to strong performance in the Feedstock & Energy segment, which was somewhat counterbalanced by weaker EBITDA of our petrochemicals businesses reflecting tighter spreads.
Net profit decreased in the first quarter of 2018 compared to the first quarter of 2017 to RR 26.8 billion largely due to the significant foreign exchange gain incurred last year due to the Russian rouble appreciation against euro and US dollar and respective revaluation of the debt denominated in these currencies.
Our capital expenditures4] increased by 42.6% year-on-year to RR 31.9 billion (net of VAT) in the first quarter of 2018 on higher ZapSibNeftekhim financing. Project progress reached 77% at the end of March 2018.
| Financial results | |||
|---|---|---|---|
|
Three months ended 31 March |
Change | ||
| RR millions, except as stated | 2018 | 2017 | % |
| Income statement highlights | |||
| Revenue (net of VAT and export duties), including: Feedstock & Energy Olefins & Polyolefins Plastics, Elastomers & Intermediates Unallocated | 120,092 50,475 22,404 36,344 10,869 | 107,287 41,282 21,400 38,233 6,372 | 11.9% 22.3% 4.7% (4.9%) 70.6% |
| Adjusted EBITDA5 | 44,456 | 42,128 | 5.5% |
| EBITDA | 42,261 | 40,332 | 4.8% |
| EBITDA margin, % | 35.2% | 37.6% | |
| EBITDA of reportable segments | |||
| Feedstock & Energy | 26,599 | 20,665 | 28.7% |
| Olefins & Polyolefins | 9,637 | 12,000 | (19.7%) |
| Plastics, Elastomers & Intermediates | 6,633 | 9,310 | (28.8%) |
| Cash flow highlights | |||
| Net cash from operating activities | 32,532 | 39,313 | (17.2%) |
| Operating cash flows before working capital changes | 43,570 | 42,170 | 3.3% |
| Net cash used in investing activities, including | (32,454) | (21,253) | 52.7% |
| Capital expenditures4 | (31,875) | (22,352) | 42.6% |
| Net cash used in financing activities | (22,405) | (20,407) | 9.8% |
Borrowings
As of 31 March 2018, our total debt decreased by 6.2% comparing to 31 December 2017 and amounted to RR 293.1 billion. The decline was attributable to the redemption of outstanding Eurobond that matured in January 2018.
Our net debt6 to EBITDA ratio was 1.6х.
| Financial results | |||
|---|---|---|---|
| As of | As of | Change, | |
| RR millions |
31 March 2018 |
31 December 2017 | % |
| Total debt | 293,056 | 312,344 | (6.2%) |
| Debt excluding related to ZapSibNeftekhim | 113,520 | 139,147 | (18.4%) |
| ZapSibNeftekhim related debt | 179,536 | 173,197 | 3.7% |
| Cash and cash equivalents | 26,051 | 48,456 | (46.2%) |
| Net debt 6 | 267,005 | 263,888 | 1.2% |
| Debt excluding related to ZapSibNeftekhim | 95,405 | 102,744 | (7.1%) |
| ZapSibNeftekhim related debt | 171,600 | 161,144 | 6.5% |
Full version of the Consolidated Interim Condensed Financial Information (unaudited) as of and for the three months ended 31 March 2018 in accordance with International Financial Reporting Standards (IFRS) is available on our website (http://investors.sibur.com/results-centre/financial-results.aspx).
1 Including volumes under processing arrangements.
2 Including Gazprom Neft’s share in the processing / production volumes of Yuzhno-Priobskiy GPP starting September 2015
3 Excluding Gazprom Neft’s share in the processing / production volumes of Yuzhno-Priobskiy GPP
4 Includes purchase of property, plant and equipment, intangible assets and other non-current assets.
5 EBITDA adjusted for the respective portion of EBITDA of joint ventures and associates
6 Net debt represents total debt less cash and cash equivalents.
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