SIBUR reports revenue growth of 12.6% for H1 2012

OAO SIBUR Holding today published its combined interim condensed financial information as of and for the three and six months ended 30 June 2012 and 2011, prepared in accordance with International Financial Reporting Standards (IFRS).

In the first half 2012, SIBUR’s gas processing plants (GPPs) processed 9.1 billion cubic meters of associated petroleum gas (APG), an increase of 1.5% year-on-year. As a result, production of natural gas rose 1.4% year-on-year to 8.0 billion cubic meters. Natural gas liquids (NGL) production remained unchanged compared to the same period a year ago at 2.1 million metric tons.

In the first half 2012, SIBUR’s natural gas sales volume increased by 12.1% year-on-year to 5.2 billion cubic meters. External sales volumes of liquid hydrocarbons, which comprise liquefied petroleum gases (LPG), naphtha and an insignificant portion of NGL, rose 1.5% year-on-year to 2.0 million metric tons. In the first six months 2012, sales volumes of MTBE and other fuels and fuel additives amounted to 304.7 thousand metric tons, flat year-on-year. Sales volumes of petrochemical products reached 1.2 million metric tons, an increase of 9.7% compared to the first half 2011.

In the first half 2012, our revenues increased by 12.6% year-on-year to RR 136,926 million. Our EBITDA declined by 5.1% compared to the same period a year ago to RR 42,562 million. The decrease in EBITDA is primarily attributable to a reduction in spreads between feedstock and petrochemicals prices, a non-recurring change in treatment of provisions related to staff costs, higher transportation costs, as well as repairs and maintenance expenses. EBITDA margin equaled 31.1%. Our profit for the reporting period totaled RR 29,662 million, a decrease of 8.7% year-on-year.

The profit for the reporting period was additionally affected by a foreign exchange loss attributable to the revaluation of our USD and EUR-denominated debt. Net margin for the first six months 2012 amounted to 21.7%. Net of foreign exchange loss our net profit for the first half 2012 declined 3.5% year-on-year to RR 31,928 million. Net margin for the first six months 2012 (net of foreign exchange loss) amounted to 23.3%.

SIBUR is the largest integrated gas processing and petrochemicals company in Russia and CIS as well as Central and Eastern Europe as measured by revenues. We purchase associated petroleum gas and liquid hydrocarbon feedstock from major Russian oil and gas companies and process them into energy products, including liquefied petroleum gases, natural gas and naphtha and further into various petrochemical products, including basic polymers, synthetic rubbers, plastics, products of organic synthesis, intermediates and other chemicals. We sell to around 1,500 customers in the energy, automotive, construction, retail and other industries in 60 countries. As of 30 June 2012, SIBUR owned and operated 27 production sites across Russia and employed approximately 31,800 people.
Since September 2011, Leonid Mikhelson, СЕО and founder of NOVATEK, has been the ultimate controlling shareholder of the Group. 100% of the share capital of OAO SIBUR Holding is owned by Sibur Limited.

Source: SIBUR