Moscow, 17 November 2016. PAO SIBUR Holding, an integrated gas processing and petrochemicals company and a leader in the Russian petrochemicals industry, today publishes limited operational update for the three and nine months ended 30 September 2016.
KEY HIGHLIGHTS FOR 9 MONTHS 2016
- Associated petroleum gas (APG) processing volumes increased by 6.9% (1) (  ) year-on-year;
- Natural gas production volumes increased by 8.0% (1) year-on-year;
- Raw natural gas liquids (raw NGL) fractionation volumes increased by 4.1% (2) (  ) year-on-year;
- Liquid hydrocarbons sales volumes increased by 12.8% year-on-year;
- Polypropylene sales volumes increased by 12.3% year-on-year;
- Total revenue increased by 8.6% year-on-year;
- Revenue from sales of energy products increased by 3.3% year-on-year;
- Revenue from sales of petrochemicals increased by 8.7% year-on-year.
|Tonnes, except as stated||2016||2015||%||2016||2015||%|
|Processing and production volumes|
|APG processing (1) (thousand cubic metres)||5,901,360||5,390,615||9 .5%||16,812,048||15,722,096||6. 9 %|
|APG processing, SIBUR's share (3) (  ) (thousand cubic metres)||5,789,964||5,302,532||9.2%||16,457,833||15,603,020||5.5%|
|Natural gas production (1) (thousand cubic metres)||5,106,991||4,588,440||11.3%||14,571,471||13,495,487||8.0%|
Natural gas production, SIBUR's share
(thousand cubic metres)
|Raw NGL fractionation (2)||2,327,390||1,945,773||19.6%||5,959,618||5,726,113||4.1%|
|Raw NGL fractionation, SIBUR’s share||2,034,890||1,645,773||23.6%||5,329,058||4,826,113||10.4%|
|Natural gas (thousand cubic metres)||4,818,103||4,409,848||9.3%||13,685,342||12,961,544||5.6%|
|Liquid hydrocarbons||1,691,912||1,494,529||13 . 2%||4,685,981||4,155,083||12 . 8%|
|MTBE, other fuels & fuel additives||175,843||140,896||24 . 8%||492,171||439,402||12.0%|
|Petrochemical products||636,867||608,787||4 . 6%||2,029,159||1,950,430||4 . 0%|
|Plastics and organic synthesis products||227,818||223,234||2.1%||706,572||695,803||1.5%|
|Synthetic rubbers||106,636||100,328||6.3%||335,278||312,804||7 . 2%|
|Intermediates and other chemicals||129,992||138,437||(6.1%)||443,116||419,538||5 . 6%|
|Revenue (RR millions)|
|Total energy products sales revenue||50,758||46,918||8.2%||138,776||134,377||3.3%|
|Total petrochemical products sales revenue||45,569||43,887||3.8%||142,121||130,728||8.7%|
|Total revenue||104,119||95,134||9 . 4%||300,243||276,531||8.6%|
|Energy Products Sales Revenue|
|Three months ended 30 September||Change,||Nine months ended 30 September||Change,|
|RR millions, except as stated||2016||% of energy products sales||2015||% of energy products sales revenue||%||2016||% of energy products sales revenue||2015||% of energy products sales revenue||%|
|Liquid hydrocarbons||32,875||64 . 8%||29,077||62 . 0%||13 . 1%||86,917||62 . 6%||84,282||62 . 7%||3 . 1%|
|Natural gas||12,095||23.8%||11,112||23 . 7%||8.8%||34,468||24.8%||31,221||23.2%||10.4%|
|MTBE||4,879||9.6%||5,773||12 . 3%||(15.5%)||14,802||10.7%||15,964||11.9%||(7.3%)|
|Other fuels and fuel additives||909||1.8%||957||2 . 0%||(5.0%)||2,589||1.9%||2,909||2.2%||(11.0%)|
|Total energy products sales revenue||50,758||100%||46 , 918||100%||8.2%||138 , 776||100%||134 , 377||100%||3.3%|
In the nine months ended 30 September 2016, our revenue from sales of energy products increased by 3.3% year-on-year to RR 138,776 million primarily on higher revenue from sales of liquid hydrocarbons and natural gas, partially offset by lower revenue from MTBE sales.
- Liquid hydrocarbons: sales revenue up 3.1% year-on-year to RR 86,917 million on a 12.8% higher sales volumes as a result of fractionation capacity expansion in Tobolsk in the middle of 2016, as well as higher raw NGL supplies from NOVATEK.
- Natural gas: sales revenue up 10.4% year-on-year to RR 34,468 million. Sales volumes up 5.6% on higher production volumes following the increase in APG processing as a result of recent capacity expansions. Effective average selling price up 4.6% on a 7.5% indexation of the regulated natural gas prices in July 2015.
- MTBE: sales revenue down 7.3% year-on-year to RR 14,802 million. Effective average selling price down 18.4% following the dynamics of international market prices in RR terms. Sales volumes up 13.6% year-on-year on a 14.4% increase in production following capacity expansion, as well as higher feedstock availability due to shutdowns at the production of feedstock for MTBE a year earlier.
|Petrochemical Products Sales Revenue|
|Three months ended 30 September||Nine months ended 30 September|
|RR millions, except as stated||2016||% of petchem sales revenue||2015||% of petchem sales revenue||Change, %||2016||% of petchem sales revenue||2015||% of petchem sales revenue||Change, %|
|Plastics and organic synthesis products||15,966||35.0%||16,696||38.0%||(4.4%)||49,273||34.7%||47,723||36.5%||3.2%|
|Intermediates and other chemicals||6,220||13.6%||6,819||15.5%||(8.8%)||20,685||14.6%||19,727||15.1%||4.9%|
|Total petrochemical products sales revenue||45,569||100.0%||43,887||100.0%||3.8%||142,121||100.0%||130,728||100.0%||8.7%|
In the nine months ended 30 September 2016, our revenue from sales of petrochemical products increased by 8.7% year-on-year to RR 142,121 million with each petrochemical product group contibuting to the growth. Revenues from sales of basic polymers increased on higher polypropylene sales volumes and benefited from favorable market environment domestically supported by the Russian rouble depreciation. The increase in revenue from synthetic rubbers sales was a result of higher production capacity utilisation of commodity rubbers and completed homologation of thermoplastic elastomers with key clients a year earlier. The growth in revenue from sales of plastics & organic synthesis products was primarily driven by higher sales of BOPP-films and glycols on higher capacity utilisation rates.
- Plastics and organic synthesis products: sales revenue up 3.2% year-on-year to RR 49,273 million primarily driven by higher BOPP-film and glycols sales volumes on increased production volumes.
- Basic polymers: sales revenue up0% year-on-year to RR 42,567 million primarily driven by higher PP sales volumes on increased capacity utilisation rate at our production site in Tobolsk. The growth was also attributable to higher average selling prices for PP and LDPE due to the Russian rouble depreciation and favourable market environment domestically.
- Synthetic rubbers: sales revenue up 11.4% year-on-year to RR 29,596 million on higher revenue from sales of commodity rubbers and thermoplastic elastomers primarily due to completed homologation with key clients for thermoplastic elastomers a year earlier, as well as higher commodity rubbers production due to shorter maintenance shutdowns as compared to the respective period of 2015. The effective average selling price for commodity rubbers was supported by the Russian rouble depreciation and local shortage due to the third-party production shutdown. Prices for thermoplastic elastomers were positively affected by canceled discounts applied for premarketing sales in 2015.
Three months ended
None months ended
|RR millions, except as stated||2016||2015||%||2016||2015||%|
In the nine months ended 30 September 2016, other revenue increased by 69.3% year-on-year to RR 19,346 million, which was primarily attributable to higher revenue of NIPIGAZ and sales of power following the acquisition of Tobolsk Heating and Power Plant in February 2016.
The following table presents data on financing of our key investment projects for the three and nine months ended 30 September 2016 and 2015:
|RR millions (net of VAT)||
Three months ended
Nine months ended
|Tomsk||Expansion of PP and LDPE production||846||1,015||2,980||2,689||Completed|
|Tobolsk||Second GFU expansion||605||790||2,015||1,849||Completed|
|Total Debt and Net Debt|
|RR millions, except as stated||
30 September 2016
31 December 2015
|Changе, % 30 Sep 2016 vs 30 Jun 2016||Changе, % 30 Sep 2016 vs 31 Dec 2015|
|Total debt||366,118||367,984||457,149||(0 .5%)||(19.9%)|
|Debt excluding related to ZapSibNeftekhim||204,332||221,314||299,004||(7.7%)||(31.7%)|
|ZapSibNeftekhim related debt||161,786||146,670||158,145||10.3%||2.3%|
|Cash and cash equivalents||70,143||66,164||172,083||6.0%||(5 9 .2 %)|
|Net debt excluding related to ZapSibNeftekhim||184,186||215,392||247,131||(14.4%)||(25.5%)|
|ZapSibNeftekhim related net debt||108,632||83,215||37,935||30.5%||186.4%|
|Debt / EBITDA||2.7x||2.7x||3.4x|
|Net debt (4) / EBITDA (5) , including||2.2x||2.2x||2.1x|
|Net debt excluding related to ZapSibNeftekhim||1.4x||1.6x||1.8x|
|ZapSibNeftekhim related net debt||0.8x||0.6x||0.3x|
Debt Maturity Profile
The following table presents scheduled maturities of our outstanding debt as of the dates indicated:
|Debt Maturity Profile|
|RR millions, except as stated||As of 30 September 2016||% of total borrowings||As of 30 June 2016||% of total borrowings||As of 31 December 2015||% of total borrowings||
30 Sep 2016 vs 31 Dec 2015
|Due for repayment:|
|Within one year||16,772||4.6%||43,106||11.7%||47,745||10.4%||(64.9%)|
|Between one and two years||57,548||15.7%||70,738||19.2%||48,794||10.7%||17.9%|
|Between two and five years||146,268||40.0%||119,563||32.5%||212,286||46.4%||(31.1%)|
|Between five and ten years||23,449||6.4%||16,723||4.5%||17,280||3.8%||35.7%|
|After ten years||122,081||33.3%||117,853||32.0%||131,044||28.7%||(6.8%)|
|Debt Currency Structure|
|RR millions, except as stated||As of 30 September 2016||% of total borrowings||As of 30 June 2016||% of total borrowings||As of 31 December 2015||% of total borrowings||Change, %|
- Total debt : largely unchanged from 30 June 2016 and a 19.9% decrease vs. 31 December 2015 to RR 366,118million due to the repayment of debt denominated primarily in foreign currencies, as well as to Russian rouble appreciation as RR/USD rate decreased by 13.3% to 63.1581 as of 30 September 2016 from 72.8827 as of 31 December 2015.
- Net debt: a 1.9% decrease to RR 292,858 million vs. 30 June 2016 due to higher cash balances and a 2.7% increase vs. 31 December 2015, as we substantially utilised sources provided by the National Wealth Fund for financing of ZapSibNeftekhim capital expenditures.
- Credit lines: RR 234,350 million available under existing credit facilities denominated in Russian roubles, US dollars and euros, both short- and long-term, of which an equivalent of RR 132,225 million committed.
The published data may be revised when we publish the IFRS audited consolidated financial information as of and for the year ended 31 December 2016 and supporting MD&A.
(1) Including Gazprom Neft’s share in the processing / production volumes of Yuzhno-Priobskiy GPP starting September 2015.
(2) Including fractionation volumes under processing arrangements.
(3) Excluding Gazprom Neft’s share in the processing / production volumes of Yuzhno-Priobskiy GPP starting September 2015.
(4) Net debt represents total debt less cash and cash equivalents and bank deposits.
(5) Unaudited data.