Q1 2013, SIBUR reports a more than 5% increase in APG processing

OAO SIBUR Holding, a unique integrated gas processing and petrochemicals company, today published its operational and financial results for the three months ended 31 March 2013 in accordance with International Financial Reporting Standards (IFRS).

In the first quarter of 2013, SIBUR’s gas processing plants (GPPs) processed 4.9 billion cubic metres of associated petroleum gas (APG), an increase of 5.3% year-on-year. As a result, production of natural gas rose 4.2% year-on-year to 4.2 billion cubic meters. Raw natural gas liquids (raw NGL) production increased by 12% year-on-year to 1.3 million tonnes. In the first quarter of 2013, our natural gas sales volumes increased by 26.7% year-on-year to 3.5 billion cubic meters. External sales of natural gas liquids (NGLs), which comprise liquefied petroleum gases (LPG), naphtha and raw NGL, rose 11.7% year-on-year to 1.1 million tonnes. Sales volumes of petrochemical products totaled 529,203 tonnes, a decrease of 13.3% year-on-year, primarily attributable to the reclassification of a significant portion of external polypropylene sales to intercompany following the consolidation of BIAXPLEN, as well as lower sales of synthetic rubbers due to weak demand.

In the first quarter of 2013, SIBUR’s revenue decreased by 7.6% year-on-year to RR 66.2 billion. The decrease was largely attributable to two factors. First, our revenues from sales of synthetic rubbers decreased on the back of low demand. Second, in the first quarter of 2012, we continued trading activities in favour of the mineral fertilisers business, which had been divested at the end of 2011. Revenue from such trading activities, which we reported as “trading and other sales” in the first quarter of 2012, is non-recurring, as these activities were discontinued from the second quarter of 2012. The above factors were only partially compensated by solid performance of our energy product group on strong volume growth despite lower prices and an increase in revenue from sales of plastics and organic synthesis products thanks to higher production and change in scope through consolidation of BIAXPLEN.

Our EBITDA for the first quarter of 2013 amounted to RR 20.5 billion, a year-on-year decline of 11.1%. Our EBITDA margin totaled 31%. The year-on-year decrease in EBITDA and EBITDA margin is primarily explained by tighter spreads between feedstock and petrochemicals prices, particularly in the synthetic rubber product group. Net profit for the first quarter of 2013 totaled RR 15.6 billion. In the first quarter of 2013, our capital expenditures increased by 81.0% year-on-year to RR 21.5 billion. The increase was attributable to our investments in the development of our feedstock processing and transportation infrastructure as well as in our petrochemical projects in line with our strategic objectives. Our cash from operating activities increased by 5.7% year-on-year and reached RR 23.1 billion.

SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. We own and operate Russia’s largest gas processing business in terms of associated petroleum gas processing volumes and are a leader in the Russian petrochemicals industry. As of 31 March 2013, SIBUR operated 27 production sites across Russia and employed over 30,000 personnel. We serve over 1,500 large customers operating in the energy, automotive, construction, fast moving consumer goods (FMCG), chemical and other industries in approximately 60 countries.

Source: SIBUR