SIBUR reports IFRS results for the year ended 31 December 2011

ZAO SIBUR Holding reports its audited combined financial information for the year ended 31 December 2011, prepared in accordance with International Financial Reporting Standards (“IFRS”).

In 2011, our full year revenues increased by 31.9% year-on-year to RR 248,660 million from RR 188,563 million in 2010. The growth was attributable to higher production volumes, positive demand trends, strong pricing environment for both energy and petrochemical products, and our efforts to enhance sales efficiency.
In 2011, our EBITDA totaled RR 86,669 million, increasing from RR 58,178 million in 2010 or by 49.0%. Our 2011 EBITDA margin reached 34.9%.
Net profit for the year surged 54.2% to RR 62,799 million from RR 40,737 million in 2010, for a profit margin of 25.3%.

In 2011, SIBUR’s gas processing plants (GPPs) processed over 18 billion cubic meters of APG, produced 15.8 billion cubic meters of natural gas and 4.2 million metric tons of natural gas liquids (NGL). We also produced 4.5 million metric tons of petrochemical products.
In 2011, natural gas sales volumes declined by 5.8% compared to 2010, due to the transfer of our GPP in Nyagan, OOO Nyagangazpererabotka, to our JV with TNK-BP, which increased the overall volumes of natural gas produced by our GPPs but decreased SIBUR’s share.
Sales volumes of liquid hydrocarbons, which comprise liquefied petroleum gases (LPG), naphtha and an insignificant portion of NGL, increased by 20.9% compared to 2010 due to higher production and purchases from third parties. Sales volumes of MTBE and other fuel additives and fuels increased by 10.8% on the back of increased production.
Petrochemicals sales volumes increased slightly as production growth was partially offset by stock accumulation at the end of 2011. The stock accumulation was primarily due to change of our marketing and distribution strategy with a view of getting direct access to customers through elimination of intermediaries. While this increased average transportation distances and required accumulation of stock at our regional warehouses, we expect this to strengthen our market positions and enhance sales efficiency in the future.

As of 31 December 2011, our total borrowings amounted to RR 82,910 million compared to RR 58,698 million as of 31 December 2010, an increase of RR 24,212 million or 41.2% year-on-year. The increase was attributable to additional long-term borrowings to finance our capital expenditure program and transactions that resulted in changes in the shareholder structure. The maturity and currency profile of our debt portfolio improved in line with our financial policy objectives.
As of 31 December 2011, cash and cash equivalents amounted to RR 14,971 million, net debt to RR 67,939 million, increasing from RR 43,282 million as of December 2010. As of 31 December 2011, net debt/EBITDA amounted to 0.78х.

Source: SIBUR