Assistant for
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, 16 September 2014. OAO 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 2014 in accordance with International Financial Reporting Standards (IFRS).
Operational highlights
Financial highlights
Operational Results
In the first half of 2014, SIBUR’s gas processing plants (GPPs) processed 10.3 billion cubic metres of APG(ii), an increase of 7.4% year-on-year. As a result, production of natural gas rose by 8% year-on-year to 9.0 billion cubic metres(ii). Raw NGL production increased by 7.4% year-on-year to 2.5 million tonnes(ii).
SIBUR increased sales volumes of the majority of its energy products primarily due to substantial expansion of trading activities for naphtha following the launch of Ust-Luga transshipment facility. Natural gas sales volumes increased by 18.4% year-on-year to 7.4 billion cubic metres. External sales of NGLs, including liquefied petroleum gases (LPG), naphtha and raw NGL, rose 39.1% year-on-year to 3.2 million tonnes. Sales volumes of petrochemical products totaled 1.03 thousand tonnes, a decrease of 3.1% year-on-year.
Operating results
|
Tonnes, except as stated |
Six months ended30 June |
Change % |
|
| 2014 | 2013 | ||
| Processing and production volumes | |||
| APG processing (thousand cubic metres)(ii) | 10,347,137 | 9,635,356 | 7.4% |
| APG processing, SIBUR's share (thousand cubic metres)(iii) | 8,941,429 | 6,786,469 | 31.8% |
| Natural gas production (thousand cubic metres)(ii) | 8,969,388 | 8,303,639 | 8.0% |
| Natural gas production, SIBUR's share (thousand cubic metres)(iii) | 7,637,200 | 5,655,811 | 35.0% |
| Raw NGL production(ii) | 2,541,693 | 2,365,703 | 7.4% |
| Raw NGL production, SIBUR’s share(iii) | 2,214,222 | 1,727,569 | 28.2% |
| Basic polymers production | 301,594 | 201,047 | 50.0% |
| Synthetic rubbers production | 183,825 | 216,665 | (15.2%) |
| Plastics and organic synthesis production | 415,000 | 447,670 | (7.3%) |
| Intermediates and other chemicals production | 1,945,573 | 1,977,678 | (1.6%) |
| Sales volumes | |||
| Natural gas sales volumes (thousand cubic metres) | 7,354,204 | 6,211,514 | 18.4% |
| NGLs sales volumes | 3,247,103 | 2,334,561 | 39.1% |
| MTBE, other fuels & fuel additives sales volumes | 292,514 | 320,791 | (8.8%) |
| Petrochemical products sales volumes | 1,031,689 | 1,064,436 | (3.1%) |
Financial Results
In the first half of 2014, SIBUR reported strong financial results attributable to the completion of large-scale projects on construction of integrated transportation infrastructure, processing capacities, as well as polymers production. The completion of the construction of the Purovsk–Pyt-Yakh–Tobolsk pipeline provides SIBUR with access to the additional available volumes of raw NGL, and the expanded fractionation capacity in Tobolsk enabled us to increase production volumes of energy products. We also increased production and sales of basic polymers following the launch of Tobolsk‑Polymer Plant.
SIBUR’s revenue increased by 32.1% to RR 171,712 million compared to RR 130,030 million in the first half of 2013.
In the first half of 2014, our revenue from sales of energy products increased by 59.8% year-on-year to RR 107,394 million from RR 67,219 million in the first half of 2013. Our energy product group delivered strong performance following the launch of the Ust-Luga transshipment facility in the end of 2013, which resulted in a significant increase in naphtha sales volumes. Moreover, the growth was attributable to the launch of the new integrated transportation and fractionation capacities.
Our revenue from sales of basic polymers increased by 58.2% year-on-year to RR 16,695 million from RR 10,555 million in the first half of 2013 following the launch of Tobolsk-Polymer Plant.
Our synthetic rubber business remained under significant pressure on the back of persistently negative market environment for our synthetic rubber grades resulting in a decrease of revenue by 20.1% year-on-year to RR 13,488 million from RR 16,878 million in the first half of 2013. This resulted in an increase of revenue from sales of petrochemical products by 3.4% year-on-year to RR 59,930 million from RR 57,984 million in the first half of 2013.
Our EBITDA for the period increased by 29.8% year-on-year to RR 49,486 million from RR 38,117 million in the first half of 2013. This was largely attributable to the completion of large-scale investment projects.
SIBUR’s adjusted profit for the first half of 2014 increased by 32.8% year-on-year to RR 30,727 million from RR 23,132 million a year earlier. The profit was positively affected by the increase of operational profit following the launch of new capacities and Russian rouble depreciation.
SIBUR recorded a non-cash gain on acquisition of a 49% stake in OOO Yugragazpererabotka related to the revaluation of SIBUR’s share in the JV accounted for at historical cost before the transaction. This was partially offset by a non-cash charge related to the equity-settled share-based payment plans granted to the Group’s former and current directors and key management in July 2013, and a non-cash gain on deconsolidation of OOO Yugragazpererabotka in the first half of 2013. Our profit for the first half of 2014 increased almost three times to RR 75,691 million from RR 25,545 million a year earlier.
In the first half of 2014, our capital expenditures decreased by 26.4% to RR 26,520 million in the first half of 2014 from RR 36,044 million a year earlier, as we completed several large-scale projects in 2013.
Financial results
|
RR millions, except as stated |
Six months ended30 June |
Change % |
|
| 2014 | 2013 | ||
| Revenue (net of VAT and export duties) | 171,712 | 130,030 | 32.1% |
| Energy products | 107,394 | 67,219 | 59.8% |
| Petrochemical products | 59,930 | 57,984 | 3.4% |
| Other | 4,388 | 4,827 | (9.1%) |
| EBITDA | 49,486 | 38,117 | 29.8% |
| EBITDA margin, % | 28.8% | 29.3% | |
| Profit for the reporting period | 75,691 | 25,545 | 196.3% |
| Adjusted profit(i) | 30,727 | 23,132 | 32.8% |
| Operating cash flows before working capital changes | 49,281 | 37,827 | 30.3% |
| Net cash used in investing activities, including | (51,420) | (36,325) | 41.6% |
| Capital expenditures | (26,520) | (36,044) | (26.4%) |
Borrowings
As of 30 June 2014, our total debt amounted to RR 129,247 million, a decrease of 1.7% from RR 131,452 million as of 31 March 2014. The portion of long-term debt increased to 62.4% from 47.9% as of 31 March 2014
Our net debt(iv) decreased by 4.6% to RR 114,466 million as of 30 June 2014 from RR 119,984 million as of 31 March 2014. As of 30 June 2014, our net debt to EBITDA ratio was 1.27x compared to 1.48x as of 31 March 2014 demonstrating the company’s strong financial position.
Borrowings
|
RR millions, except as stated |
As of 30 June 2014 |
As of 31 March 2014 |
As of 31 December 2013 |
Changе, % vs 31 Mar 2014 |
Change, % vs 31 Dec 2013 |
| Total debt | 129,247 | 131,452 | 100,474 | (1.7%) | 28.6% |
| Cash and cash equivalents | 14,781 | 11,468 | 7,948 | 28.9% | 86.0% |
| Net debt(iv) | 114,466 | 119,984 | 92,526 | (4.6%) | 23.7% |
| Key ratio | |||||
| Debt / EBITDA | 1.43x | 1.62x | 1.27x | ||
| Net debt(iv)/ EBITDA | 1.27x | 1.48x | 1.17x | ||
Borrowings by scheduledmaturities
|
RR millions, except as stated |
As of 30 June 2014 |
% of total borrowings |
As of 31 March 2014 |
% of total borrowings |
As of 31 Dec 2013 |
% of total borrowings |
Change, % vs 31 Dec 2013 |
| Due for repayment: | |||||||
| Within one year | 48,570 | 37.6% | 68,551 | 52.1% | 42,743 | 42.5% | 13.6% |
|
Between one and two years |
30,496 | 23.6% | 8,466 | 6.4% | 6,344 | 6.3% | 380.7% |
|
Between two and five years |
41,547 | 32.1% | 45,248 | 34.4% | 42,454 | 42.3% | (2.1%) |
| After five years | 8,634 | 6.7% | 9,187 | 7.0% | 8,933 | 8.9% | (3.4%) |
| Total debt | 129,247 | 100.0% | 131,452 | 100.0% | 100,474 | 100.0% | 28.6% |
Full version of the unaudited consolidated interim condensed financial information as of and for the three and six months ended 30 June 2014 in accordance with International Financial Reporting Standards (IFRS) is available on our website (http://investors.sibur.com/results-centre/financial-results.aspx).
About SIBUR
SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes, and is a leader in the Russian petrochemicals industry.
As of 30 June 2014, SIBUR operated 26 production sites located all over Russia, had over 1,400 major customers engaged in the energy, automotive, construction, fast moving consumer goods (FMCG), chemical and other industries in approximately 70 countries worldwide and employed over 26,000 personnel.
(i) Profit for the reporting period net of equity-settled share-based payment plans and the non-cash gain on acquisition and deconsolidation of OOO Yugragazpererabotka.
(ii) Including Rosneft’s share in the processing / production volumes of OOO Yugragazpererabotka for 2013.
(iii) Excluding Rosneft’s share in the processing / production volumes of OOO Yugragazpererabotka for 2013.
(iv) Net debt represents total debt less cash and cash equivalents.
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