Moscow, 15 May 2018. PAO SIBUR Holding, an integrated gas processing and petrochemicals company publishes its operational and financial results for the three months ended 31 March 2018 in accordance with International Financial Reporting Standards (IFRS).
- Gas fractionation volumes increased by 9%1 year-on-year
- Liquid hydrocarbons sales volumes increased by 18.3% year-on-year
- Revenue from LPG sales increased by 31.3% year-on-year
- Revenue from Polyolefins sales increased by 4.7% year-on-year
- Revenue up by 11.9% year-on-year
- EBITDA up by 4.8% year-on-year
- EBITDA margin amounted to 35.2%
- Total debt decreased by 6.2% from 2017 year-end
In the first quarter of 2018, SIBUR’s gas processing plants (GPPs) processed 5.6 billion cubic metres2 of APG, an increase of 2.3% year-on-year. As a result, production of natural gas totaled 4.8 billion cubic metres2.. Raw NGL fractionation volumes increased by 9% year-on-year to 2.2 million tonnes1.
In the first quarter of 2018, SIBUR’s sales volumes of liquid hydrocarbons increased by 18.3% year-on-year and totaled 1.5 million tonnes, while natural gas sales volumes increased by 1.9% year-on-year and totaled 4.5 billion cubic metres.
In the first quarter of 2018, polyolefin sales volumes increased by 3.2% and reached 210 thousand tonnes, while sales of plastics and organic synthesis products increased by 2.2% to 197 thousand tonnes year-on-year on higher capacity load.
Three months ended|
|Thousand tonnes, except as stated||2018||2017||%|
|Processing and production volumes|
|APG processing2 (million cubic metres)||5,582||5,457||2.3%|
|APG processing, SIBUR's share3 (million cubic metres)||5,450||5,326||2.3%|
|Natural gas production2 (million cubic metres)||4,844||4,738||2.2%|
|Natural gas production, SIBUR's share3 (million cubic metres)||4,745||4,638||2.3%|
|Raw NGL fractionation1||2,246||2,060||9.0%|
|Raw NGL fractionation, SIBUR’s share||1,946||1,760||10.6%|
|Natural gas (million cubic metres)||4,521||4,437||1.9%|
|LPG Naphtha||1,305 202||1,067 207||22.3% (2.5%)|
|Petrochemical products, including||883||930||(5.0%)|
|Polyolefins (PP and PE)||210||203||3.2%|
|Plastics and organic synthesis products||197||193||2.2%|
|Intermediates and other chemicals||130||144||(10.0%)|
In the first quarter of 2018 our revenue increased by 11.9% year-on-year to RR 120 billion on the following dynamics across business segments:
- In the first quarter of 2018, our Feedstock & Energy external revenue increased by 22.3% primarily on the growth in LPG sales volumes on higher raw NGL fractionation volumes. The increase in revenues from sales of liquid hydrocarbons was also attributable to favorable market conditions.
- Olefins & Polyolefins segment revenue increased by 4.7% mostly due to the growth in PP benchmark prices, which was partially offset by a downturn in PE prices.
- Plastics, Elastomers & Intermediates segment external revenue decreased by 4.9%, and totaled RR 36.3 billion which was mainly attributable to decline in elastomers sales on lower prices as compared to the spiked level a year earlier. Decrease in revenue from MTBE and fuel additives was attributable to divestment of Uralorgsintez in April 2017. This was partially compensated by higher revenues from Plastics and organic synthesis products driven by positive price dynamics across the product group.
- Unallocated revenue increased up to RR 10.9 billion due to higher revenue from NIPIGAZ services.
EBITDA increased by 4.8% due to strong performance in the Feedstock & Energy segment, which was somewhat counterbalanced by weaker EBITDA of our petrochemicals businesses reflecting tighter spreads.
Net profit decreased in the first quarter of 2018 compared to the first quarter of 2017 to RR 26.8 billion largely due to the significant foreign exchange gain incurred last year due to the Russian rouble appreciation against euro and US dollar and respective revaluation of the debt denominated in these currencies.
Our capital expenditures4] increased by 42.6% year-on-year to RR 31.9 billion (net of VAT) in the first quarter of 2018 on higher ZapSibNeftekhim financing. Project progress reached 77% at the end of March 2018.
Three months ended |
|RR millions, except as stated||2018||2017||%|
|Income statement highlights|
|Revenue (net of VAT and export duties), including: Feedstock & Energy Olefins & Polyolefins Plastics, Elastomers & Intermediates Unallocated||120,092 50,475 22,404 36,344 10,869||107,287 41,282 21,400 38,233 6,372||11.9% 22.3% 4.7% (4.9%) 70.6%|
|EBITDA margin, %||35.2%||37.6%|
|EBITDA of reportable segments|
|Feedstock & Energy||26,599||20,665||28.7%|
|Olefins & Polyolefins||9,637||12,000||(19.7%)|
|Plastics, Elastomers & Intermediates||6,633||9,310||(28.8%)|
|Cash flow highlights|
|Net cash from operating activities||32,532||39,313||(17.2%)|
|Operating cash flows before working capital changes||43,570||42,170||3.3%|
|Net cash used in investing activities, including||(32,454)||(21,253)||52.7%|
|Net cash used in financing activities||(22,405)||(20,407)||9.8%|
As of 31 March 2018, our total debt decreased by 6.2% comparing to 31 December 2017 and amounted to RR 293.1 billion. The decline was attributable to the redemption of outstanding Eurobond that matured in January 2018.
Our net debt6 to EBITDA ratio was 1.6х.
|As of||As of||Change,|
|31 December 2017||%|
|Debt excluding related to ZapSibNeftekhim||113,520||139,147||(18.4%)|
|ZapSibNeftekhim related debt||179,536||173,197||3.7%|
|Cash and cash equivalents||26,051||48,456||(46.2%)|
|Net debt 6||267,005||263,888||1.2%|
|Debt excluding related to ZapSibNeftekhim||95,405||102,744||(7.1%)|
|ZapSibNeftekhim related debt||171,600||161,144||6.5%|
Full version of the Consolidated Interim Condensed Financial Information (unaudited) as of and for the three months ended 31 March 2018 in accordance with International Financial Reporting Standards (IFRS) is available on our website (http://investors.sibur.com/results-centre/financial-results.aspx).
1 Including volumes under processing arrangements.
2 Including Gazprom Neft’s share in the processing / production volumes of Yuzhno-Priobskiy GPP starting September 2015
3 Excluding Gazprom Neft’s share in the processing / production volumes of Yuzhno-Priobskiy GPP
4 Includes purchase of property, plant and equipment, intangible assets and other non-current assets.
5 EBITDA adjusted for the respective portion of EBITDA of joint ventures and associates
6 Net debt represents total debt less cash and cash equivalents.