18 Feb 2020 14:09

Sibur ups profit 27.6% in 2019 to 141.4 bln rubles on FX debt revaluation

MOSCOW. Feb 18 (Interfax) - Sibur's net profit to International Financial Reporting Standards (IFRS) in 2019 was up 27.6% to 141.4 billion rubles, the petrochemical company said in a statement.

Net profit growth was largely prompted by revaluation of the company's forex debt, the statement said.

Revenue was down 6.6% compared with the previous year to 531.8 billion rubles. "Revenue declined amid negative trends in the segments of gas processing and infrastructure, as well as elastomer plastics and intermediate goods," the statement said.

The decline of the overall indicator was offset somewhat by revenue growth in the olefin and polyolefin segments as trial sales of polypropylene produced at the ZapSibNeftekhim plant began.

EBITDA fell 15.4% to 170 billion rubles driven by weak performance of Midstream and the Plastics, Elastomers & Intermediates segments. This decline was partially offset by EBITDA growth of 30% to 49 billion rubles in the Olefins & Polyolefins segment, due to lower prices for raw materials (LPG) and increased sales of polypropylene.

In 2019, Sibur's gas processing plants (GPPs) processed 22.6 billion cubic metres of associated petroleum gas (APG), an increase of 1.5% year-on-year. Raw NGL fractionation volumes remained at 2018 levels and amounted to 7.7 million tonnes1. LPG sales decreased by 4.0% to 5.1 million tonnes due to higher internal use of this raw material during the commissioning of ZapSib.

As of December 31, 2019, total debt amounted to 379.7 billion rubles, an increase of 14.2% from December 31, 2018. The increase was driven by drawdown of credit facilities for ZapSib funding, and Group's adoption of IFRS 16 from January 1, 2019.

Net debt as of increased by 14.1% compared to 31 December 2018 and amounted to 362.3 billion rubles.

The net debt to EBITDA ratio as of 31 December 2019 was 2.1x, compared to 1.6x as of 31 December 2018.