SIBUR reports H1 2021 IFRS results

PJSC SIBUR Holding, the largest integrated petrochemicals company in Russia and one of the fastest-growing companies in the petrochemical industry globally, today announces its operating and financial results for the second quarter and the six months ended 30 June 2021 in accordance with International Financial Reporting Standards (IFRS).

Highlights for Q2 2021:

 

  • Revenue of RUB9 bln, up 15.8% quarter-on-quarter
  • EBITDA of RUB5 bln, up 31.2% quarter-on-quarter
  • Adjusted profit net of FX of RUB 62.8 bln, up 9% quarter-on-quarter
  • EBITDA margin of 48%
  • Net Debt to EBITDA decreased from6x to 1.2x amid positive dynamics of operating results

 

Financial and operating results

Financial results

RUB mln, except as stated

Q2 2021

Q1 2021

Change

Q2 2020

Change

H1 2021

H1 2020

Change

Revenue

200,856

173,384

15.8%

114,645

75.2%

374,240

235,316

59.0%

EBITDA

96,454

73,522

31.2%

36,437

164.7%

169,975

73,865

130.1%

EBITDA margin

 48.0%

 42.4%

 

 31.8%

 

 45.4%

 31.4%

 

Adj. profit1

62,828

44,909

39.9%

4,235

1,383.5%

107,737

35,866

200.4%

Net debt/EBITDA

1.2x

1.6x

 

2.7x

 

 

 

 

Operating results

Thousand tonnes, except as stated

Q2 2021

Q1 2021

Change

Q2 2020

Change

H1 2021

H1 2020

Change

Processing and production2

 

 

 

 

 

 

 

 

APG processing (mln cu. m)

4,999

4,848

3.1%

5,162

(3.2%)

9,847

10,896

(9.6%)

Raw NGL fractionation

1,971

1,992

(1.1%)

1,826

7.9%

3,963

3,850

2.9%

Sales volumes

 

 

 

 

 

 

 

 

Petrochemical products

1,293

1,418

(8.8%)

1,357

(4.8%)

2,711

2,414

12.3%

PE

383

434

(11.7%)

419

(8.4%)

818

551

48.3%

PP

291

321

(9.5%)

266

9.2%

612

509

20.3%

Other sales

619

662

(6.6%)

672

(8.0%)

1,281

1,354

(5.4%)

Midstream products

986

893

10.4%

1,002

(1.6%)

1,879

2,326

(19.2%)

Debt

RUB mln, except as stated

30 Jun 2021

31 Mar 2021

Change

30 Jun 2020

Change

 

 

 

Total debt

388,082

406,130

(4.4%)

464,091

(16.4%)

 

 

 

Net debt

334,689

353,015

(5.2%)

419,101

(20.1%)

 

 

 

1Adjusted profit equals profit for the period attributable to shareholders of the parent company, adjusted for foreign exchange gain/loss and result of subsidiary’s acquisition and/or disposal and remeasurement of related liabilities and/or assets. 2SIBUR’s share

Peter O’Brien, Chief Financial Officer and member of the Management Board at SIBUR, said:

“The global market recovery has had a positive effect on demand for petrochemical products overall, including continued growth in the consumption of products used in medicine and food packaging. We also benefited considerably from our efforts aimed at increasing the efficiency of product distribution and logistics across various markets, as well as from the development of new sales channels both domestically and in key export markets. As a result, in the second quarter, SIBUR’s revenue was up 15.8% and our EBITDA increased by 31.2% quarter-on-quarter.

 

“Our robust financial performance including strong operating cash flow enabled us to further optimise our debt portfolio and reduce our Net Debt/EBITDA ratio from 1.6x to 1.2x in both RUB and USD terms.

 

“In the beginning of July, we successfully closed the order book for a new issue of exchange-traded bonds totalling RUB 10 billion. The issue achieved the narrowest spread to OFZs (ruble-denominated Russian Treasury bonds) on the local bond market in the Company’s history, and the order book was more than five times oversubscribed.

 

“Earlier in the second quarter, we secured a loan with an interest rate linked to SIBUR’s performance on sustainability targets. This was a logical next step in our integrated approach to our business, allowing us to reduce the cost of borrowing as we deliver on our sustainability goals, and it serves as yet another testimony to our commitment not only to financial efficiency, but also to the principles of sustainable development.”

 

Financial results

In Q2 2021, revenue increased by 15.8% to RUB 200.9 billion, compared to RUB 173.4 billion a quarter earlier, as a result of the following trends across business segments:

  • Revenue in the Olefins & Polyolefins segment increased by6% to RUB 89.3 billion, primarily due to global price dynamics for these products.
  • Revenue in the Plastics, Elastomers & Intermediates segment increased by 7% to RUB 51.5 billion, also due to positive price dynamics in RUB terms across all product categories.
  • Revenue in the Midstream segment increased by 2% to RUB 47.8 billion, mainly as a result of an increase in external LPG and naphtha sales amid scheduled maintenance works at ZapSibNeftekhim.

In Q2 2021, operating expenses increased by 3.9% quarter-on-quarter from RUB 115.6 billion to RUB 120.1 billion. The result was affected by a significant increase in the cost of feedstock and a rise in transportation and logistics costs, as well as by higher repairs and maintenance costs.

Capital expenditures decreased by 12.1% quarter-on-quarter to RUB 22.2 billion.

 

Operating results

In Q2 2021, SIBUR’s gas processing plants processed 5 billion cubic metres of APG, up 3.1% quarter-on-quarter, amid an increase in associated petroleum gas (APG) supplies, which are subject to seasonality. Raw NGL fractionation volumes remained nearly unchanged from Q1 2021 at 2 million tonnes. External LPG sales increased by 5% to 702.8 thousand tonnes.

 

Sales of polypropylene were down 9.5% to 291 thousand tonnes, and sales of polyethylene were down by 11.7% to 383 thousand tonnes, due to an increase in the share of volumes exported to distant markets and stocks accumulated to meet growing domestic demand. Despite a temporary decrease in production volumes, SIBUR met demand for polypropylene and polyethylene, supporting above all domestic customers. Sales of plastics and organic synthesis products remained unchanged from Q1 2021 at 204 thousand tonnes. Sales of elastomers decreased by 13% to 94.5 thousand tonnes.

 

Borrowings

 

As of 30 June 2021, the Company’s total debt amounted to RUB 388.1 billion, down 4.4% compared to 31 March 2021. This decrease was, above all, due to the early repayment of the Company’s debt that was used to finance the construction of ZapSibNeftekhim, the redemption of RUB bonds in the amount of RUB 10 billion, as well as due to the appreciation of the Russian ruble against the dollar and the euro.

 

As of 30 June 2021, SIBUR’s Net Debt decreased by 5.2% to RUB 334.7 billion compared to RUB 353 billion at 31 March 2021.

 

The Net Debt/EBITDA ratio as of 30 June 2021 was 1.2x in both RUB and USD terms.

Results by segment

Olefins & Polyolefins

Financial results

RUB mln, except as stated

Q2 2021

Q1 2021

Change

Q2 2020

Change

H1 2021

H1 2020

Change

Revenue1

104,984

85,611

22.6%

51,210

105.0%

190,595

91,715

107.8%

External revenue

89,340

74,082

20.6%

46,777

91.0%

163,422

77,719

110.3%

PP

37,527

29,741

26.2%

17,661

112.5%

67,268

33,985

97.9%

PE

40,685

35,996

13.0%

22,347

82.1%

76,681

29,929

156.2%

BOPP-films

7,548

5,281

42.9%

5,035

49.9%

12,829

9,265

38.5%

Ethylene

2,358

2,192

7.6%

1,093

115.7%

4,550

2,782

63.6%

Other polymers

925

652

41.9%

442

109.3%

1,577

1,353

16.6%

Other sales

297

220

35.0%

199

49.2%

517

405

27.7%

EBITDA

51,519

36,523

41.1%

20,095

156.4%

88,042

31,065

183.4%

EBITDA margin

 49.1%

 42.7%

 

 39.2%

 

 46.2%

 33.9%

 

Adj. EBITDA2

58,115

41,277

40.8%

22,990

152.8%

99,392

36,263

174.1%

Production

Tonnes, except as stated

Q2 2021

Q1 2021

Change

Q2 2020

Change

H1 2021

H1 2020

Change

Production

1,688,747

1,694,907

(0.4%)

1,275,308

32.4%

3,383,654

2,634,008

28.5%

PP

317,984

326,092

(2.5%)

235,261

35.2%

644,075

504,435

27.7%

PE

438,526

437,261

0.3%

316,791

38.4%

875,787

645,049

35.8%

BOPP-films

38,307

34,820

10.0%

40,058

(4.4%)

73,127

76,971

(5.0%)

Ethylene

539,281

537,623

0.3%

419,031

28.7%

1,076,905

862,884

24.8%

Propylene

354,649

359,111

(1.2%)

264,167

34.3%

713,761

544,669

31.0%

Sales

Tonnes, except as stated

Q2 2021

Q1 2021

Change

Q2 2020

Change

H1 2021

H1 2020

Change

Gross sales, including:

852,871

929,109

(8.2%)

856,472

(0.4%)

1,781,980

1,415,091

25.9%

Intercompany sales

87,856

84,646

3.8%

79,030

11.2%

172,503

154,606

11.6%

External sales

765,015

844,463

(9.4%)

777,443

(1.6%)

1,609,477

1,260,485

27.7%

Domestic

394,531

380,532

3.7%

268,861

46.7%

775,063

520,175

49.0%

Export

370,484

463,930

(20.1%)

508,581

(27.2%)

834,415

740,311

12.7%

1Including inter-segment transfers; 2EBITDA adjusted for the Group’s portion of EBITDA of joint ventures and associates and net of the non-controlling interest of related subsidiaries’ EBITDA

 

In Q2 2021, EBITDA in the Olefins & Polyolefins segment reached RUB 51.5 billion, up 41.1% quarter-on-quarter amid strong price dynamics. EBITDA margin increased by 6.4 p.p. quarter-on-quarter to 49.1%. In H1 2021, EBITDA was up 183.4% year-on-year, due to an increase in the production of polypropylene and polyethylene at ZapSibNeftekhim, as well as due to the segment’s price dynamics, which reflected substantial increases off the lows during the peak of the pandemic in 1H 2020. SIBUR continued to meet the demand of the Russian market, supporting above all domestic customers.

External sales of olefins and polyolefins decreased by 9.4% to 765 thousand tonnes quarter-on-quarter. Domestic sales increased by 3.7% while export sales decreased by 20.1%, as sales were re-routed amid stronger domestic demand.

 Plastics, Elastomers & Intermediates

Financial results

RUB mln, except as stated

Q2 2021

Q1 2021

Change

Q2 2020

Change

H1 2021

H1 2020

Change

Revenue1

53,951

44,161

22.2%

26,845

101.0%

98,112

59,629

64.5%

External revenue

51,534

41,999

22.7%

26,368

95.4%

93,533

57,124

63.7%

POSP2

23,088

16,952

36.2%

11,140

107.3%

40,040

21,958

82.3%

Elastomers

12,983

12,456

4.2%

9,095

42.7%

25,439

19,117

33.1%

I&OC3

11,987

10,146

18.1%

4,582

161.6%

22,133

11,565

91.4%

MTBE and fuel additives

3,316

2,240

48.0%

1,387

139.1%

5,556

4,106

35.3%

Other sales

160

205

(22.0%)

164

(2.4%)

365

378

(3.4%)

EBITDA

16,566

11,673

41.9%

3,117

431.5%

28,239

5,253

437.6%

EBITDA margin

 30.7%

 26.4%

 

 11.6%

 

 28.8%

 8.8%

 

Adj. EBITDA4

16,710

11,537

44.8%

3,128

434.2%

28,247

5,255

437.5%

Production

Tonnes, except as stated

Q2 2021

Q1 2021

Change

Q2 2020

Change

H1 2021

H1 2020

Change

Production

1,520,862

1,610,747

(5.6%)

1,401,492

8.5%

3,131,609

2,931,159

6.8%

Transfers5

87,856

84,646

3.8%

79,030

11.2%

172,503

154,606

11.6%

Purchases from third parties

18,618

19,981

(6.8%)

47,712

(61.0%)

38,599

102,221

(62.2%)

Production, transfers and purchases

1,627,337

1,715,374

(5.1%)

1,528,234

6.5%

3,342,711

3,187,986

4.9%

Sales

Tonnes, except as stated

Q2 2021

Q1 2021

Change

Q2 2020

Change

H1 2021

H1 2020

Change

Gross sales, including:

541,329

583,817

(7.3%)

590,978

(8.4%)

1,125,146

1,190,039

(5.5%)

Intercompany sales

13,596

10,428

30.4%

11,170

21.7%

24,024

36,297

(33.8%)

External sales

527,733

573,389

(8.0%)

579,808

(9.0%)

1,101,122

1,153,743

(4.6%)

Domestic

401,783

424,600

(5.4%)

389,237

3.2%

826,384

773,336

6.9%

Export

125,950

148,789

(15.3%)

190,571

(33.9%)

274,738

380,406

(27.8%)

1Including inter-segment transfers, 2plastics and organic synthesis products, 3intermediates and other chemicals; 4EBITDA adjusted for the Group’s portion of EBITDA of joint ventures and associates and net of the non-controlling interest of related subsidiaries’ EBITDA; 5transfers from olefins and polyolefins segment

In Q2 2021, the PE&I segment’s EBITDA reached RUB 16.6 billion, up 41.9% quarter-on-quarter, and EBITDA margin was up 4.3 p.p. to 30.7%. EBITDA for H1 2021 came in 5x higher than the same period last year when both demand and prices were strongly affected by the onset of the pandemic.

External sales of plastics, elastomers and intermediates decreased by 8% quarter-on-quarter primarily due to maintenance works at the company’s Voronezh site. Domestic sales decreased by 5.4% while export sales decreased by 15.3%.

 

 

 

Midstream

Financial results

RUB mln, except as stated

Q2 2021

Q1 2021

Change

Q2 2020

Change

H1 2021

H1 2020

Change

Revenue1

77,355

72,606

6.5%

33,908

128.1%

149,961

96,231

55.8%

External revenue

47,757

44,142

8.2%

28,188

69.4%

91,899

73,898

24.4%

LPG

22,929

22,660

1.2%

12,822

78.8%

45,589

35,284

29.2%

Natural gas

11,824

11,254

5.1%

11,793

0.3%

23,078

24,881

(7.2%)

Naphtha

11,867

8,374

41.7%

2,778

327.2%

20,241

10,956

84.7%

Other sales

1,137

1,854

(38.7%)

795

43.0%

2,991

2,777

7.7%

EBITDA

32,709

28,664

14.1%

7,912

313.4%

61,373

31,403

95.4%

EBITDA margin

 42.3%

 39.5%

 

 23.3%

 

 40.9%

 32.6%

 

Adj. EBITDA2

32,717

28,679

14.1%

7,928

312.7%

61,396

31,431

95.3%

Production3

Tonnes, except as stated

Q2 2021

Q1 2021

Change

Q2 2020

Change

H1 2021

H1 2020

Change

LPG4

1,702,661

1,731,575

(1.7%)

1,497,905

13.7%

3,434,236

3,215,463

6.8%

Natural gas (thsd cu. m)

4,333,943

4,182,825

3.6%

4,474,931

(3.2%)

8,516,769

9,462,854

(10.0%)

Naphtha

362,131

341,909

5.9%

350,366

3.4%

704,040

728,229

(3.3%)

Raw NGL

1,187,224

1,172,838

1.2%

1,254,519

(5.4%)

2,360,062

2,589,868

(8.9%)

Sales

Tonnes, except as stated

Q2 2021

Q1 2021

Change

Q2 2020

Change

H1 2021

H1 2020

Change

External sales

 

 

 

 

 

 

 

 

LPG

702,805

669,122

5.0%

808,576

(13.1%)

1,371,927

1,834,984

(25.2%)

Natural gas (thsd cu. m)

4,172,597

3,963,910

5.3%

4,303,073

(3.0%)

8,136,507

9,066,835

(10.3%)

Naphtha

282,821

223,826

26.4%

193,308

46.3%

506,646

491,080

3.2%

1including inter-segment transfers; 2EBITDA adjusted for the Group’s portion of EBITDA of joint ventures and associates and net of the non-controlling interest of related subsidiaries’ EBITDA; 3SIBUR’s share; 4including ethane-propane mix volumes.

In Q2 2021, the Midstream segment’s EBITDA increased by 14.1% to RUB 32.7 billion quarter-on-quarter, and by 95.4% year-on-year to RUB 61.4 billion in H1 2021. This result is mainly due to positive price dynamics for LPG and naphtha amid rising oil prices. As a result, the segment’s EBITDA margin was 42.3%, up 2.8 p.p. quarter-on-quarter.

In Q2 2021, external sales of LPG and naphtha increased by 5% and 26.4%, respectively, due to lower internal consumption of these products, as well as due to higher production volumes at ZapSibNeftekhim.

The full version of the Consolidated Audited Financial Information as of and for the six months ended 30 June 2021 in accordance with IFRS is available on our website at http://investors.sibur.com/results-centre/financial-results.aspx?sc_lang=en.

International Media Relations
  • Anna Lebed
  • Tel.: +7 (495) 937-17-26
    Fax: +7 (495) 777-55-00
  • E-mail: LebedAI@sibur.ru
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