Moscow, 7 August 2018. PJSC SIBUR Holding, an integrated petrochemicals company, today publishes its operational and financial results for the three and six months ended 30 June 2018 in accordance with International Financial Reporting Standards (IFRS).
Dmitry Konov, Chairman of the Management Board of SIBUR Holding, said: “In the first half of 2018, SIBUR delivered strong sales volumes and revenue, underscoring the efficiency of our strategic focus on boosting output of cutting-edge products with high added value. In the reporting period we reached a historical record LTM EBITDA of RUB 175 billion. I would also like to highlight the progress we have achieved in the construction of ZapSibNeftekhim, Russia's largest petrochemical facility, which is set to become a growth driver for the whole industry.”
Operational efficiency continues to improve thanks to SIBUR’s investment in high-tech solutions and focus on higher productivity.
In the first half of 2018, SIBUR’s gas processing plants (GPPs) processed 10.8 billion cubic metres2 of APG, an increase of 0.7% year-on-year. As a result, natural gas output totalled 9.4 billion cubic metres2. Raw NGL fractionation volumes increased by 5.6% year-on-year to 3.7 million tonnes,1 contributing to an 18.4% increase in LPG sales volumes year-on-year to 2.6 billion cubic metres. Natural gas sales volumes stayed almost flat and totalled 9 billion cubic metres.
Continuing growth of demand for petrochemicals helped to increase sales volumes of most products in this segment. Sales volumes of polypropylene increased by 5.4% year-on-year to 293 thousand tonnes despite a scheduled maintenance shutdown at the Tobolsk production site, which was offset by faster growth of sales of this product from other SIBUR facilities and JVs. Sales volumes of polyethylene (LDPE) increased by 3% year-on-year to 136 thousand tonnes as we channelled higher volumes for export, primarily to China and Europe, where the market environment was more favourable. Sales volumes of plastics and organic synthesis products decreased by 4.4% year-on-year to 387 thousand tonnes following the shifts in shutdowns schedule at some production sites in comparison with the same period of 2017. New contracts boosted sales volumes of elastomers by 4.2% year-on-year to 248 thousand tonnes.
|Six months ended 30 June||Change|
|Thousand tonnes, except as stated||2018||2017||%|
|Processing and production volumes|
|APG processing (thousand cubic metres) 3||11,026||10,949||0.7%|
|APG processing, SIBUR's share (million cubic metres) 2||10,769||10,692||0.7%|
|Natural gas production (thousand cubic metres)3||9,566||9,518||0.5%|
|Natural gas production, SIBUR's share (thousand cubic metres) 2||9,373||9,322||0.5%|
|Raw NGL fractionation4||4,346||4,148||4.8%|
|Raw NGL fractionation, SIBUR's share1||3,746||3,548||5.6%|
|Natural gas (million cubic metres)||8,975||8,922||0,6%|
|Petrochemical products, including||1,814||1,842||(1.5%)|
|Plastics and organic synthesis products||387||405||(4,4%)|
|Intermediates and other chemicals||235||272||(13,6%)|
In the first half of 2018, revenue increased by 21.6% year-on-year to RUB 257.7 billion with the following dynamics across the segments:
EBITDA increased by 18.7% year-on-year to RUB 89.2 billion, fuelled by the strong performance of the Midstream segment, where EBITDA increased by 58% year-on-year and partially offset by the decrease in EBITDA from the Olefins & Polyolefins segment on the back of tighter polyolefin spreads.
Net profit in the first half of 2018 decreased by 30.3% year-on-year to RUB 45.9 billion largely on the back of a gain recorded in the first half of 2017 from the disposal of JSC Uralorgsintez, versus FX loss incurred in the first half of 2018 due to the depreciation of the ruble against the US dollar and respective euro and revaluation of the Company’s FX-denominated debt.
Capital expenditures5 increased by 44.3% year-on-year to RUB 70.3 billion as spending on ZapSib rose as a result of the transition to the final stage of project implementation. Overall progress on the project increased from 71% as of 1 January 2018 to 84% as of 30 June 2018. As of 30 June 2018 investment in the project totalled RUB 354 billion, or approximately USD 6 billion.
|Six months ended 30 June||Change|
|RUB millions, except as stated||2018||2017||%|
|Revenue (net of VAT and export duties):||257,694||211,944||21,6%|
|Olefins & Polyolefins||48,189||42,634||13,0%|
|Plastics, Elastomers & Intermediates||78,151||76,192||2,6%|
|Net cash from operating activities||70,645||63,291||11,6%|
|Net cash used in investing activities, including:||(71,011)||(29,413)||>100%|
As of 30 June 2018, total debt amounted to RUB 325.5 billion, an increase of 4.2% from 31 December 2017. The increase was attributable to new drawdowns of ZapSib-related financing, as well as to the depreciation of the Russian rouble against euro and US dollar. As such, the growth in gross total debt was compensated by a repayment of conventional debt that is not related to the construction of ZapSib project.
Net debt6 as of 30 June 2018 amounted RUB 301.7 billion, an increase of 14.3% compared to 31 December 2017
The net debt6 to EBITDA ratio in ruble terms was 1.7х as of 30 June 2018.
|RUB millions||As of 30 June 2018||As of 31 December 2017||Change, %|
|Total debt Debt excluding related to ZapSib ZapSib related debt||325,531 124,231 201,300||
|Cash and cash equivalents||23,782||48,456||(50,9%)|
The full version of the Consolidated Interim Condensed Financial Information (unaudited) as of and for the three and six months ended 30 June 2018 in accordance with International Financial Reporting Standards (IFRS) is available on our website (http://investors.sibur.com/results-centre/financial-results.aspx?sc_lang=ru-RU )
SIBUR is a leader in the Russian petrochemicals industry with uniquely positioned vertically integrated business model. More than 27,000 employees working in SIBUR contribute to the success of customers engaged in the chemical, fast moving consumer goods (FMCG), automotive, construction, energy and other industries in 80 countries worldwide.
In 2017, SIBUR reported revenue of USD 7.8 billion and adjusted EBITDA of USD 2.9 billion.
* In the reporting period, the Company renamed the Feedstock and Energy segment to “Midstream”, which, in Management’s opinion, more accurately characterises the Company’s activities within this segment and allows for proper comparison with peer companies in domestic and international markets. The implemented changes do not affect the segment composition or financial results
1 Including volumes processed at third-party capacities and excluding third-party volumes processed at SIBUR’s capacities.
2 Excluding third-party volumes processed at SIBUR’s capacities.
3 Including third-party volumes processed at SIBUR’s capacities.
4 Including fractionation volumes under processing arrangements.
5 Includes purchase of property, plant and equipment, intangible assets and other non-current assets.
6 Net debt is calculated as total debt less cash and cash equivalents.
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