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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, 10 June 2014. OAO SIBUR Holding, an integrated gas processing and petrochemicals company, today published its operational and financial results for the three months ended 31 March 2014 in accordance with International Financial Reporting Standards (IFRS).
Operational highlights
Financial highlights
Operational Results
In the first quarter of 2014, SIBUR’s gas processing plants (GPPs) processed 5.04 billion cubic metres of APG(1), an increase of 3.4% year-on-year. As a result, production of natural gas(2) rose by 3.2% year-on-year to 4.4 billion cubic metres(1). Raw NGL production increased by 7.5% year-on-year to 1.4 million tonnes(1).
SIBUR increased sales volumes of the majority of its energy products primarily due to substantial expansion of trading activities for LPG and naphtha following the launch of Ust-Luga transshipment facility. External sales of NGLs, including liquefied petroleum gases (LPG), naphtha and raw NGL, rose 40.5% year-on-year to 1.5 million tonnes. Natural gas sales volumes decreased by 17.8% year-on-year to 2.9 billion cubic metres. Sales volumes of petrochemical products totaled 496.4 thousand tonnes, a decrease of 6.2% year-on-year.
Operating results| Tonnes, except as stated |
Three months ended 31 March | Change % |
|
| 2014 | 2013 | ||
| Processing and production volumes | |||
| APG processing (thousand cubic metres)(1) | 5,038,650 | 4,872,095 | 3.4% |
| APG processing, SIBUR's share (thousand cubic metres)(3) | 3,632,942 | 3,428,147 | 6.0% |
| Natural gas production (thousand cubic metres)(1) | 4,360,023 | 4,223,915 | 3.2% |
| Natural gas production, SIBUR's share (thousand cubic metres)(3) | 3,030,307 | 2,863,610 | 5.8% |
| Raw NGL production(1) | 1,392,966 | 1,295,491 | 7.5% |
| Raw NGL production, SIBUR’s share(3) | 1,000,938 | 920,575 | 8.7% |
| Basic polymers production | 133,422 | 100,290 | 33.0% |
| Synthetic rubbers production | 96,590 | 119,363 | (19.1%) |
| Plastics and organic synthesis production | 215,943 | 236,603 | (8.7%) |
| Intermediates and other chemicals production | 1,061,761 | 1,102,025 | (3.7%) |
| Sales volumes | |||
| Natural gas sales volumes (thousand cubic metres) | 2,898,382 | 3,523,923 | (17.8%) |
| NGLs sales volumes | 1,538,274 | 1,095,126 | 40.5% |
| MTBE, other fuels & fuel additives sales volumes | 151,928 | 181,770 | (16.4%) |
| Petrochemical products sales volumes | 496,383 | 529,203 | (6.2%) |
Financial Results
In the first quarter of 2014, our revenue increased by 20.9% to RR 80,002 million compared to RR 66,184 million in the first quarter of 2013. Our energy product group delivered strong performance on higher sales volumes. Our revenue from sales of energy products increased by 42.4% year-on-year to RR 49,622 million from RR 34,846 million in 2013. SIBUR substantially expanded its trading activities for LPG and naphtha with the launch of Ust-Luga transshipment facility. In the first quarter of 2014, our revenue from sales of basic polymers increased by 47.8% year-on-year to RR 7,396 million from RR 5,004 million in the first quarter of 2013. The increase was primarily attributable to higher PP sales volumes following the launch of Tobolsk-Polymer plant the second half of 2013.
This was partially offset by declining revenue from sales of synthetic rubbers, intermediates & other chemicals and processing services. Our synthetic rubber business remained under significant pressure on the back of persistent market price correction for our synthetic rubber grades. An unscheduled shutdown at our steam cracker in Kstovo resulted in a decrease in production of certain intermediates and the respective decline in revenue from sales of intermediates & other chemicals. Following the deconsolidation of OOO Yugragazpererabotka as of 12 March 2013, we did not consolidate its revenue until March 2014, when we gained full control over OOO Yugragazpererabotka, which resulted in a decrease in sales of processing services in the first quarter of 2014(4).
Our EBITDA for the period amounted to RR 22,569 million, a year-on-year growth by 10.1% from RR 20,505 million in the first quarter of 2013. Our EBITDA margin totaled 28.2% compared to 31.0% reported a year earlier. The year-on-year increase in EBITDA was primarily attributable to the completion of large-scale investment projects, such as Tobolsk-Polymer plant, the biggest polypropylene production facility in Russia. The EBITDA was positively affected by the foreign exchange rate fluctuations.
Our profit for the first quarter of 2014 increased four times to RR 56,774 million from RR 15,634 million a year earlier. The increase was primarily attributable to non-cash gain on consolidation of Yugragazpererabotka and the revaluation of SIBUR’s share in the JV accounted for at historical cost before the transaction.
In the first quarter of 2014, our capital expenditures decreased by 36.4% to RR 13,682 million in the first quarter of 2014 from RR 21,507 million a year earlier, resulting from completion of several large-scale projects in feedstock & energy and petrochemicals segments.
In the first quarter of 2014, SIBUR made a payment of the first tranche for the acquisition of RN-Holding’s 49% stake in OOO Yugragazpererabotka in the amount of RR 20,547 million.
Financial results| RR millions, except as stated |
Three months ended 31 March | Change % |
|
| 2014 | 2013 | ||
| Revenue (net of VAT and export duties) | 80,002 | 66,184 | 20.9% |
| Energy products | 49,622 | 34,846 | 42.4% |
| Petrochemical products | 28,233 | 28,326 | (0.3%) |
| Other | 2,147 | 3,012 | (28.7%) |
| EBITDA | 22,569 | 20,505 | 10.1% |
| EBITDA margin, % | 28.2% | 31.0% | |
| Profit for the year | 56,774 | 15,634 | 263.1% |
| RR millions, except as stated |
Three months ended 31 March | Change, % |
|
| 2014 | 2013 | ||
| Net cash from operating activities | 16,860 | 23,105 | (27.0%) |
| Net cash used in investing activities, including: | (35,627) | (22,131) | 61.0% |
| Capital expenditures | (13,682) | (21,507) | (36.4%) |
| Acquisition of interest in OOO Yugragazperabotka | (20,547) | - | - |
Borrowings
As of 31 March 2014, our total debt amounted to RR 131,452 million compared to 100,474 million as of 31 December 2013, an increase of 30.8%.
Our net debt(5) increased by 29.7% to RR 119,984 million as of 31 March 2014 from RR 92,526 million as of 31 December 2013. The net debt to EBITDA ratio stood at 1.48x, demonstrating the company’s strong financial position.
Borrowings| RR millions, except as stated |
As of 31 March 2014 |
As of 31 December 2013 |
Change, % |
| Total debt | 131,452 | 100,474 | 30.8% |
| Cash and cash equivalents | 11,468 | 7,948 | 44.3% |
| Net debt(5) | 119,984 | 92,526 | 29.7% |
| Key ratio | |||
| Debt/EBITDA | 1,62x | 1,27x | |
| Net debt(5)/EBITDA | 1,48x | 1,17x | |
Borrowings by scheduled maturities
| RR millions, except as stated |
As of 31 March 2014 | % of total borrowings | As of 31 December 2013 | % of total borrowings | Change, % |
| Due for repayment: | |||||
| Within one year | 68,551 | 52.1% | 42,743 | 42.5% | 60.4% |
| Between one and two years | 8,466 | 6.4% | 6,344 | 6.3% | 33.4% |
| Between two and five years | 45,248 | 34.4% | 42,454 | 42.3% | 6.6% |
| After five years | 9,187 | 7.0% | 8,933 | 8.9% | 2.8% |
| Total debt | 131,452 | 100.0% | 100,474 | 100.0% | 30.8% |
Full version of the unaudited consolidated interim condensed financial information as of and for the three months ended 31 March 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 31 March 2014, SIBUR operated 27 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 27,000 personnel.
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(1) Including Rosneft’s share in the processing / production volumes of OOO Yugragazpererabotka.
(2) Equivalent to natural gas.
(3) Excluding Rosneft’s share in the processing / production volumes of OOO Yugragazpererabotka.
(4) On 12 March 2013, SIBUR's call options for RN-Holding's (former TNK-BP Holding) interest in Yugragazpererabotka expired. Since that date, SIBUR started to recognise this investment in Yugragazpererabotka under IFRS 11 as an investment in a joint venture using the equity method, while previously SIBUR had consolidated Yugragazpererabotka, and RN-Holding's share had been booked as loans received.
(5) Net debt is calculated as total debt less cash and cash equivalents.
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