Sibur rubber sales grow 11.5% in first half

Moscow - Sibur Holding has reported an 11.5% year-on-year increase in first half sales of its elastomers business.

The unit’s revenue rose to RUB29 billion (€412 million) during the six months to end of June, helped by a 26% increase in speciality rubbers sales at RUB6.9 billion.

Revenue from thermoplastic elastomers fell 3.6% to RUB5.1 billion, due to a 17% decline in domestic sales.

In general, domestic sales of elastomers fell 8.3% to just under RUB9 billion, which was more than offset by a 23.4% increase in exports at RUB20 billion.

Elastomers production fell 1.7% to 258 kilotonnes for the first half, hit by a 7.9% decline in commodity rubbers. Sibur’s elastomers business is part of its Plastics, Elastomers & Intermediates segment.

Segment earnings (EBITDA) for the first half of the year decreased by 32.6%, despite revenue growth in elastomers business.

Sibur attributed the lower earnings to an increase in cost base, primarily feedstock prices and mainly purchases of terephthalic acid from third parties during the maintenance shutdown at its production site in Blagoveshensk.