Sibur reports h1 2014 ifrs results

OAO SIBUR Holding, an integrated gas processing and petrochemicals company, today published its operational and financial results for the three and six months ended 30 June 2014 in accordance with International Financial Reporting Standards (IFRS).

Operational highlights
Associated petroleum gas (APG) processing volumes increased by 7.4% year-on-year
Raw natural gas liquids (raw NGL) production increased by 7.4% year-on-year
Liquefied petroleum gases (LPG) production increased by 12.6% following the expansion of gas fractionation capacities and completion of the construction of raw NGL pipeline
Basic polymers’ production increased by 50% following the launch of Tobolsk-Polymer Plant

Financial highlights
Revenue increased by 32.1% year-on-year
Revenue from sales of energy products increased by 59.8% year-on-year
Revenue from sales of basic polymers increased by 58.2% year-on-year
Revenue from sales of synthetic rubbers decreased by 20.1% year-on-year
EBITDA increased by 29.8% year-on-year
Adjusted profit increased by 32.8% year-on-year

Operational Results
In the first half of 2014, SIBUR’s gas processing plants (GPPs) processed 10.3 billion cubic metres of APG(ii), an increase of 7.4% year-on-year. As a result, production of natural gas rose by 8% year-on-year to 9.0 billion cubic metres(ii). Raw NGL production increased by 7.4% year-on-year to 2.5 million tonnes.

SIBUR increased sales volumes of the majority of its energy products primarily due to substantial expansion of trading activities for naphtha following the launch of Ust-Luga transshipment facility. Natural gas sales volumes increased by 18.4% year-on-year to 7.4 billion cubic metres. External sales of NGLs, including liquefied petroleum gases (LPG), naphtha and raw NGL, rose 39.1% year-on-year to 3.2 million tonnes. Sales volumes of petrochemical products totaled 1.03 thousand tonnes, a decrease of 3.1% year-on-year.

Financial Results
In the first half of 2014, SIBUR reported strong financial results attributable to the completion of large-scale projects on construction of integrated transportation infrastructure, processing capacities, as well as polymers production. The completion of the construction of the Purovsk–Pyt-Yakh–Tobolsk pipeline provides SIBUR with access to the additional available volumes of raw NGL, and the expanded fractionation capacity in Tobolsk enabled us to increase production volumes of energy products. We also increased production and sales of basic polymers following the launch of Tobolsk‑Polymer Plant.

SIBUR’s revenue increased by 32.1% to RR 171,712 million compared to RR 130,030 million in the first half of 2013.

In the first half of 2014, our revenue from sales of energy products increased by 59.8% year-on-year to RR 107,394 million from RR 67,219 million in the first half of 2013. Our energy product group delivered strong performance following the launch of the Ust-Luga transshipment facility in the end of 2013, which resulted in a significant increase in naphtha sales volumes. Moreover, the growth was attributable to the launch of the new integrated transportation and fractionation capacities.

Our revenue from sales of basic polymers increased by 58.2% year-on-year to RR 16,695 million from RR 10,555 million in the first half of 2013 following the launch of Tobolsk-Polymer Plant.

Our synthetic rubber business remained under significant pressure on the back of persistently negative market environment for our synthetic rubber grades resulting in a decrease of revenue by 20.1% year-on-year to RR 13,488 million from RR 16,878 million in the first half of 2013. This resulted in an increase of revenue from sales of petrochemical products by 3.4% year-on-year to RR 59,930 million from RR 57,984 million in the first half of 2013.

Our EBITDA for the period increased by 29.8% year-on-year to RR 49,486 million from RR 38,117 million in the first half of 2013. This was largely attributable to the completion of large-scale investment projects.

SIBUR’s adjusted profit for the first half of 2014 increased by 32.8% year-on-year to RR 30,727 million from RR 23,132 million a year earlier. The profit was positively affected by the increase of operational profit following the launch of new capacities and Russian rouble depreciation.

SIBUR recorded a non-cash gain on acquisition of a 49% stake in OOO Yugragazpererabotka related to the revaluation of SIBUR’s share in the JV accounted for at historical cost before the transaction. This was partially offset by a non-cash charge related to the equity-settled share-based payment plans granted to the Group’s former and current directors and key management in July 2013, and a non-cash gain on deconsolidation of OOO Yugragazpererabotka in the first half of 2013. Our profit for the first half of 2014 increased almost three times to RR 75,691 million from RR 25,545 million a year earlier.

In the first half of 2014, our capital expenditures decreased by 26.4% to RR 26,520 million in the first half of 2014 from RR 36,044 million a year earlier, as we completed several large-scale projects in 2013.

SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. SIBUR owns and operates Russia’s largest gas processing business in terms of associated petroleum gas processing volumes, and is a leader in the Russian petrochemicals industry.

As of 30 June 2014, SIBUR operated 26 production sites located all over Russia, had over 1,400 major customers engaged in the energy, automotive, construction, fast moving consumer goods (FMCG), chemical and other industries in approximately 70 countries worldwide and employed over 26,000 personnel.

Source: SIBUR