SIBUR Reports FY 2015 IFRS Results

PAO SIBUR Holding, an integrated gas processing and petrochemicals company, today published its operational and financial results for the full year 2015 in accordance with International Financial Reporting Standards (IFRS).

In 2015 SIBUR’s gas processing plants (GPPs) processed 21.5 billion cubic metres of APG, an increase of 3%¹ year-on-year. As a result, production of natural gas rose by 2.4%¹ year-on-year to 18.5 billion cubic metres. Raw NGL fractionation volumes increased by 23.1% year-on-year to 7.8 million tonnes following the capacity expansion in Tobolsk.

Natural gas sales volumes increased by 10.1% year-on-year to 17.6 billion cubic metres. External LPG sales volumes increased by 23.1% year-on-year to 4.3 million tonnes.

In 2015 SIBUR increased sales volumes of all types of petrochemical products. Production volumes of polypropylene increased by 30.6% year-on-year to 516 thousand tonnes. Sales of plastics and organic synthesis products increased by 17% year-on-year to 921.6 thousand tonnes. Sales of synthetic rubbers increased by 14.2% year-on-year to 411.1 thousand tonnes largely attributable to improved economics for commodity and specialty rubbers, completion of continued thermoplastic elastomers homologation with key clients by the end of 2014, and respective increase of export sales. Our sales of intermediates and other chemicals increased by 22.4% to 549.8 thousand tonnes following the expansion of the production facilities of the Group.

In 2015, SIBUR demonstrated strong financial results despite the challenging external environment primarily on the back of the expansion of our petrochemical business.

Our revenue increased by 5.2% year-on-year to RR 380 billion, while revenue adjusted for trading operations via the Ust-Luga transshipment facility ceased in 2015, increased by 18.9%.

SIBUR demonstrated the significant growth in revenue and sales volumes of petrochemical products attributable to capacity expansions in PET and BOPP-films, as well as an increase in glycols production due to low base of 2014 as a result of the shutdowns at our production sites in 2014. Our revenue from sales of plastics and organic synthesis products increased by 39.3% year-on-year to RR 63.7 billion. We also increased our revenue from sales of basic polymers by 32.6% year-on-year to RR 50.9 billion following an increase in the average capacity utilisation rate of our polypropylene production in Tobolsk. Our revenue from sales of synthetic rubbers increased by 26% year-on-year to RR 35 billion on the back of improved market environment. In 2015, revenue from sales of petrochemical products increased by 32.7% year-on-year to RR 175.8 billion. Our adjusted profit⁵ decreased by 9.9% year-on-year to RR 62.4 billion.

In 2015, our capital expenditures⁶ increased by 17.9% year-on-year to RR 84.4 billion. SIBUR's Board of Directors has approved the 2016 capital expenditures budget in the amount of RR 147.5 billion⁷. The increase is attributable to the start of the implementation of ZapSibNeftekhim project.

¹Including Rosneft’s share in the processing/production volumes of Yugragazpererabotka in the first quarter of 2014. Including Gazprom Neft’s share in the processing/production volumes of Yuzhno-Priobskiy GPP starting September 2015.

⁵Profit for the reporting period net of the realised foreign exchange loss in 2015 and foreign exchange loss in 2014, the equity-settled share-based payment plans, and the non-cash gains on acquisition of OOO Yugragazpererabotka in March 2014.
⁶Includes purchase of property, plant and equipment, intangible assets and other non-current assets.
⁷The Board of Directors will review the capital expenditures budget later in the year 2016.

Source: SIBUR