OREANDA-NEWS. PAO SIBUR Holding, an integrated gas processing and petrochemicals company, and a leader in the Russian petrochemical industry, today published its operational and financial results for the full year 2014 in accordance with International Financial Reporting Standards (IFRS).

Operational highlights

  • Associated petroleum gas (APG) processing volumes increased by 6.3% year-on-year
  • Raw natural gas liquids (raw NGL) fractionation increased by 20.1% year-on-year
  • NGL sales volumes increased by 34.7% year-on-year

Financial highlights:

  • Revenue increased by 34% year-on-year
  • Revenue from sales of energy products increased by over 50% year-on-year
  • Revenue from sales of basic polymers increased by 68.3% year-on-year, largely attributable to operations at the Tobolsk-Polymer plant
  • Revenue from sales of synthetic rubbers decreased by 14.1% year-on-year
  • EBITDA increased by 30% year-on-year to more than RR 100 billion
  • Net profit decreased by 44.8% year-on-year due to FX fluctuations

Operational results

In 2014 SIBUR’s gas processing plants (GPPs) processed 20.8 billion cubic metres of APG, an increase of 6.3% year-on-year. As a result, production of natural gas(1) rose by 6.4% year-on-year to 18 billion cubic metres. Raw NGL fractionation volumes increased by 6.6% year-on-year to 5.2 million tonnes.

In 2014 SIBUR increased sales volumes of the majority of its energy products. Natural gas sales volumes increased by 35.2% year-on-year to 16 billion cubic metres. Sales of NGLs, including liquefied petroleum gases (LPG), naphtha and raw NGL, rose by 34.7% year-on-year to 6.5 million tonnes. Sales volumes of petrochemical products totaled 2.2 million tonnes, an increase of 5.6% year-on-year, including sales volumes of 397.7 thousand tonnes of polypropylene, a 1.9 times increaseyear-on-year. 

Operating results

Tonnes,
except as stated 		Year ended 31 December Change
%
2014 2013
Processing and production volumes
APG processing (thousand cubic metres) 20,834,647 19,600,139 6.3%
Natural gas production (thousand cubic metres) 17,989,399 16,908,508 6.4%
Raw NGL fractionation 6,315,299 5,256,760 20.1%
Basic polymers production 655,590 403,252 62.6%
Synthetic rubbers production 353,257 418,147 (15.5%)
Plastics and organic synthesis production 900,118 858,970 4.8%
Intermediates and other chemicals production 4,232,671 4,207,925 0.6%
Sales volumes


Natural gas sales volumes (thousand cubic metres) 16,004,874 11,841,787 35.2%
NGLs sales volumes 6,469,868 4,802,073 34.7%
Petrochemical products sales volumes 2,246,660 2,127,895 5.6%

Financial Results

In 2014, SIBUR posted strong financial results despite the challenging external environment in the second half of the year. Our EBITDA for the period amounted to RR 102.8 billion, an increase year-on-year of 30.3%, which was largely attributable to threefold EBITDA growth in petrochemicals and EBITDA growth in energy products. We also increased production and sales of polypropylene following our continued capacity ramp-up at the Tobolsk-Polymer plant during 2014. The launch of the Purovsk–Pyt-Yakh–Tobolsk pipeline provides SIBUR with access to additional available volumes of raw NGL, and the expanded fractionation capacity in Tobolsk enabled us to increase production volumes of energy products.

Our revenue increased by 33.8% year on year to RR 361 billion. Our revenue from sales of energy products increased significantly by 50.1% year-on-year to RR 217.2 billion. The solid performance of our energy product group was primarily attributable to higher sales volumes on expanded naphtha trading activities following the launch of the Ust-Luga transshipment facility in the end of 2013 and higher LPG and naphtha production following the launch of the transportation and fractionation capacities, as well as growth in APG processing volumes. Our revenue from sales of basic polymers increased by 68.3% year-on-year to RR 38.4 billion, largely attributable to operations at the Tobolsk-Polymer plant. The increase of revenue from sales of plastics and organic synthesis products was primarily attributable to higher sales volumes of PET and BOPP-films following respective capacity expansions. 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 14.1% year-on-year to RR 27.8 billion. Our revenue from sales of petrochemical products increased by 14.2% year-on-year to RR 132.5 billion.

Rouble depreciation positively affected our revenue and EBITDA as sale prices for the majority of products are primarily linked to international commodity benchmark prices quoted in in dollars and euros, while operational expenses are predominantly denominated in roubles.

Our net profit in 2014 decreased by 44.8% to RR 25.1 billion. It was negatively affected by the substantial Russian rouble depreciation that resulted in net foreign exchange loss in the amount of RR 85.4 billion, which was partially offset by non-cash gains related to the consolidation of Yugragazpererabotka and its further revaluation at market value.

In 2014, our capital expenditures decreased by 3.3% to RR 67.7 billion as we completed several large-scale projects in 2013 and early 2014, while we started financing ZapSibNeftekhim (ZapSib-2) at the end of 2014. 

Financial results


RR millions, except as stated 		Nine months ended 30 September Change
%
2014 2013
Revenue (net of VAT and export duties) 263,852 197,598 33.5%
Energy products 163,457 103,169 58.4%
Petrochemical products 92,850 87,491 6.1%
Other 7,545 6,938 8.7%
EBITDA 73,140 56,985 28.3%
EBITDA margin, % 27.7% 28.8%  
Profit for the reporting period 67,857 34,410 97.2%
Adjusted profit(i) 24,778 36,124 (31.4%)
Operating cash flows before working capital changes 73,561 56,780 29.6%
Net cash used in investing activities, including (76,182) (55,568) 37.1%
Capital expenditures (49,293) (52,605) (6.3%)

Borrowings

As of 30 September 2014, our total debt amounted to RR 144,939 million, an increase of 12.1% from RR 129,247 million as of 30 June 2014. The portion of long-term debt increased to 75.0% from 62.4% as of 30 June 2014.

Our net debt(ii) increased by 15.8% to RR 132,571 million as of 30 September 2014 from RR 114,466 million as of 30 June 2014. Our net debt to EBITDA ratio was 1.40x compared to 1.27x as of 30 June 2014 demonstrating the company’s strong financial position.

Borrowings

RR millions,
except as stated 		As of
30 September 2014 		As of
30 June 2014 		As of
31 December 2013 		Changе, %
vs 30 June 2014 		Change, %
vs 31 Dec 2013
Total debt 144,939 129,247 100,474 12.1% 44.3%
Cash and cash equivalents 12,368 14,781 7,948 (16.3%) 55.6%
Net debt(iv) 132,571 114,466 92,526 15.8% 43.3%
Key ratio
Debt / EBITDA 1.53x 1.43x 1.27x  
Net debt(iv)/ EBITDA 1.40x 1.27x 1.17x  

Borrowings by scheduledmaturities

RR millions,
except as stated 		As of 30
Sep 2014 		% of total
borrowings 		As of 30
Jun 2014 		% of total
borrowings 		As of 31
Dec 2013 		% of total
borrowings 		Change, %
vs 31 Dec 2013
Due for repayment:
Within one year 36,307 25.0% 48,570 37.6% 42,743 42.5% (15.1)%
Between one and
two years 		35,313 24.4% 30,496 23.6% 6,344 6.3% 456.6%
Between two and
five years 		64,364 44.4% 41,547 32.1% 42,454 42.3% 51.6%
After five years 8,955 6.2% 8,634 6.7% 8,933 8.9% 0.2%
Total debt 144,939 100.0% 129,2472 100.0% 100,474 100.0% 44.3%

About SIBUR

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 September 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.