«SIBUR» LLC is the managing organization of PJSC «SIBUR Holding».
117218, Moscow, Krzhizhanovsky st., 16/1
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Subscribe to newsMoscow, 21 June 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 months ended 31 March 2016.
KEY HIGHLIGHTS
Three months ended 31 March | Change | ||
---|---|---|---|
Tonnes, except as stated | 2016 | 2015 | % |
Processing and production volumes | |||
APG processing1 (thousand cubic metres) | 5,646,581 | 5,128,636 | 10.1% |
APG processing, SIBUR's share3 (thousand cubic metres) | 5,522,146 | 5,107,400 | 8.1% |
Natural gas production1 (thousand cubic metres) | 4,897,244 | 4,403,952 | 11.2% |
Natural gas production, SIBUR's share3 (thousand cubic metres) | 4,801,525 | 4,387,659 | 9.4% |
Raw NGL fractionation2 | 2,015,845 | 1,884,079 | 7.0% |
Raw NGL fractionation, SIBUR’s share | 1,715,845 | 1,584,079 | 8.3% |
Sales volumes | |||
Natural gas sales volumes (thousand cubic metres) | 4,574,721 | 4,205,797 | 8.8% |
LPG sales volumes | 1,143,630 | 1,018,192 | 12.3% |
MTBE, other fuels & fuel additives sales volumes | 179,291 | 148,480 | 20.8% |
Petrochemical products sales volumes | 709,858 | 646,310 | 9.8% |
Plastics and organic synthesis products | 228,580 | 223,026 | 2.5% |
Basic polymers | 201,958 | 184,454 | 9.5% |
Synthetic rubbers | 113,033 | 105,354 | 7.3% |
Intermediates and other chemicals | 166,287 | 133,476 | 24.6% |
Revenue (RR millions) | |||
Total energy products sales revenue | 47,071 | 44,873 | 4.9% |
Total petrochemical products sales revenue | 48,607 | 42,024 | 15.7% |
Other revenue | 5,704 | 3,222 | 77.0% |
Total revenue | 101,382 | 90,119 | 12.5% |
OPERATIONAL HIGHLIGHTS
Energy Products Sales Revenue
Three months ended 31 March | Change | ||||
---|---|---|---|---|---|
RR millions, except as stated | 2016 | % of energy products sales revenue | 2015 | % of energy products sales revenue | % |
LPG | 20,089 | 42.7% | 20,293 | 45.2% | (1.0%) |
Natural gas | 11,551 | 24.5 | 9,918 | 22.1% | 16.5% |
Naphtha | 7,683 | 16.3% | 8,057 | 18.0% | (4.6%) |
MTBE | 5,699 | 12.1% | 5,148 | 11.5% | 10.7% |
Raw NGL | 1,184 | 2.5% | 537 | 1.2% | 120.5% |
Other fuels and fuel additives | 864 | 1.8% | 920 | 2.0% | (6.1%) |
47,070 | 100.0% | 44,873 | 100.0% | 4.9% |
In the first quarter of 2016, our revenue from sales of energy products increased by 4.9% year-on-year to RR 47,070 million on higher revenue from sales of natural gas and increase in raw NGL and MTBE revenue, which was partially offset by lower revenue from LPG and naphtha sales. The increase in natural gas revenue was a result of a 7.5% indexation of the regulated natural gas prices and higher production volumes following expansion of Vungapurovskiy GPP and launch of Yuzno-Priobskiy GPP. The increase in raw NGL revenue was a result of temporary sale of excess volumes of raw NGL available pending our fractionation capacity expansion in Tobolsk later in 2016. The increase in revenue from MTBE sales was attributable to higher production volumes following capacity expansion. Russian rouble depreciation was a natural hedge for our effective average selling prices from the collapse in market prices for most products.
Petrochemical Products Sales Revenue
Three months ended 31 March | Change | ||||
---|---|---|---|---|---|
RR millions, except as stated | 2016 | % of petrochemical products sales revenue | 2015 | % of petrochemical products sales revenue | % |
Plastics and organic synthesis products | 15,890 | 32.7% | 14,564 | 34.7% | 9.1% |
Basic polymers | 15,632 | 32.2% | 12,125 | 28.9% | 28.9% |
Synthetic rubbers | 9,606 | 19.8% | 9,292 | 22.1% | 3.4% |
Intermediates and other chemicals | 7,479 | 15.4% | 6,043 | 14.4% | 23.7% |
Total petrochemical products sales revenue | 48,607 | 100.0% | 42,024 | 100.0% | 15.7% |
In the first quarter of 2016, our revenue from sales of petrochemical products increased by 15.7% year-on-year to RR 48,607 million on strong performance across all petrochemicals product groups. The growth was primarily attributable to higher sales of basic polymers. We increased sales of certain intermediates and other chemicals on higher production as compared to the first quarter of 2015. Growth in revenues from sales of plastics and organic synthesis products was largely attributable to higher BOPP-film sales. Increase in revenues from synthetic rubbers was largely a result of completed homologation of thermoplastic elastomers with key clients. Russian rouble depreciation strongly supported our petrochemicals products sales.
Other Revenue
Three months ended 31 March | Change | ||||
---|---|---|---|---|---|
RR millions, except as stated | 2016 | % of other revenue | 2015 | % of other revenue | % |
Sales of processing services | 509 | 8.9% | 318 | 9.9% | 60.3% |
Trading and other sales | 5,194 | 91.1% | 2,904 | 90.1% | 78.9% |
Other revenue | 5,704 | 100.0% | 3,222 | 100.0% | 77.0% |
In the first quarter of 2016, other revenue increased by 77.0% year-on-year to RR 5,704 million, which was primarily attributable to the revenue from services as a contractor within Gazprom’s Amur GPP project and sales of power following the acquisition of Tobolsk Heating and Power Plant in February 2016.
Key Feedstock Purchases
Three months ended 31 March | Change | ||
---|---|---|---|
RR millions, except as stated | 2016 | 2017 | % |
NGLs | 6,283 | 5,003 | 25.5% |
APG | 6,276 | 5,533 | 13.4% |
Paraxylene | 1,863 | 1,580 | 17.9% |
In the first quarter of 2016, we observed an increase in our expenses related to hydrocarbon feedstock purchases attributable to higher volumes due to expansion of our gas processing capacitites and additionally available NGLs feedstock from NOVATEK. The increase in paraxylene purchases was attributable to higher purchase price.
CAPITAL EXPENDITURES
The following table presents data on financing of our key investment projects for the three months ended 31 March 2016 and 2015:
RR millions, except as stated | Three months ended 31 March | |||
Location | Description | 2016 | 2015 | Completion |
Tobolsk | ZapSibNeftekhim | 42,733 | 7,355 | 2020 |
Tomsk | Expansion of PP and LDPE production | 994 | 627 | 2016 |
Tobolsk | Second GFU expansion | 547 | 542 | 2016 |
BORROWINGS
Total Debt and Net Debt
RR millions, except as stated | As of 31 March 2016 | As of 31 December 2014 | Change, % |
---|---|---|---|
Total debt | 392,267 | 457,149 | (14.2%) |
Cash and cash equivalents | 94,894 | 172,083 | (44.9%) |
Net debt | 297,373 | 285,066 | 4.3% |
Net debt(4) / EBITDA(5), including | 2.2x | 2.1x | |
Conventional net debt | 1.6x | 1.8x | |
Net debt raised for ZapSibNeftekhim | 0.6x | 0.3x | |
Net debt(4) / EBITDA(5) (in US Dollar) | 2.0x | 1.7x |
Debt Currency Structure
RR millions, except as stated | As of 31 March 2016 | % of total borrowings | As of 31 December 2015 | % of total borrowings | Change, % |
---|---|---|---|---|---|
Denominated in: | |||||
US Dollar | 242,746 | 61.9% | 306,583 | 67.1% | (20.8%) |
Russian rouble | 123,180 | 31.4% | 131,096 | 28.7% | (6.0%) |
Euro | 26,341 | 6.7% | 19,470 | 4.3% | 35.3% |
Total debt | 392,267 | 100.0% | 457,149 | 100.0% | (14.2%) |
The published data may be revised when we publish the IFRS unaudited consolidated interim condensed financial information for the first half of 2016 and supporting MD&A.
1Including Gazprom Neft’s share in the processing / production volumes of Yuzhno-Priobskiy GPP starting September 2015.
2Including fractionation volumes under processing arrangements.
3Excluding Gazprom Neft’s share in the processing / production volumes of Yuzhno-Priobskiy GPP starting September 2015.
4Net debt is calculated as total debt less cash and cash equivalents.
5Unaudited EBITDA for the first quarter of 2016.
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