ERJ staff report (TP)
Moscow – OAO SIBUR Holding, the Russian integrated gas processing and petrochemicals company, today reported an increased revenue of 20.9% in its Q1 2014 results.
In the first quarter of 2014, its revenue rose to RR 80,002 million (€1.7bn) compared to RR 66,184 million in the first quarter of 2013.
Revenue from sales of basic polymers increased by 47.8% year-on-year to RR 7,396 million from RR 5,004 million in Q1 2013. The increase was primarily attributable to higher PP sales volumes following the launch of the Tobolsk-Polymer plant in the second half of 2013.
This was partially offset by declining revenue from sales of synthetic rubbers (down 21.3%), intermediates & other chemicals and processing services. Its synthetic rubber business remained under significant pressure on the back of persistent market price correction for synthetic rubber grades.
An unscheduled shutdown at its steam cracker in Kstovo resulted in a decrease in production of certain intermediates and the respective decline in revenue from sales of intermediates & other chemicals. Following the deconsolidation of OOO Yugragazpererabotka as of 12 March 2013, the firm did not consolidate its revenue until March 2014, when it gained full control over OOO Yugragazpererabotka, which resulted in a decrease in sales of processing services in the first quarter of 2014.
EBITDA for the period amounted to RR 22,569 million, a year-on-year growth by 10.1% from RR 20,505 million in Q1 2013. This increase was primarily attributable to the completion of large-scale investment projects, such as Tobolsk-Polymer plant, the biggest polypropylene production facility in Russia. The EBITDA was positively affected by the foreign exchange rate fluctuations.
Profit for the first quarter of 2014 increased four times to RR 56,774 million from RR 15,634 million a year earlier. The increase was primarily attributable to non-cash gain on consolidation of Yugragazpererabotka and the revaluation of SIBUR’s share in the JV accounted for at historical cost before the transaction.
Capital expenditures decreased by 36.4% to RR 13,682 million from RR 21,507 million a year earlier, resulting from completion of several large-scale projects in feedstock & energy and petrochemicals segments.
SIBUR increased sales volumes of the majority of its energy products primarily due to substantial expansion of trading activities for LPG and naphtha following the launch of the Ust-Luga transshipment facility.