7 Aug 2018 15:14

Sibur sees net profit fall 32% to 44 bln rubles in H1, EBITDA up 19%

MOSCOW. Aug 7 (Interfax) - Sibur saw net profit to International Financial Reporting Standards (IFRS) drop 32% to 44.1 billion rubles in H1 2018 compared to 64.8 billion rubles in the same period last year, the petrochemicals company said in a report.

The earnings decline came "largely on the back of a gain recorded in the first half of 2017 from the disposal of JSC Uralorgsintez [19.8 billion rubles], versus FX loss incurred in the first half of 2018 due to the depreciation of the ruble against the US dollar and respective euro and revaluation of the Company's FX-denominated debt," Sibur said.

Revenue rose 21.6% to 257.7 billion rubles and operating costs increased 21% to 186 billion rubles.

EBITDA totaled 89.2 billion rubles in the reporting period, up 19% from 75.2 billion rubles last year while EBITDA margin fell to 34.6% from 35.5% in H1 2017.

The increase in EBITDA was "fueled by the strong performance of the Midstream segment, where EBITDA increased by 58% year-on-year and partially offset by the decrease in EBITDA from the Olefins & Polyolefins segment on the back of tighter polyolefin spreads," it said.

Capital expenditures increased 44.3% year-on-year to 70.3 billion rubles as spending on ZapSibNeftekhim rose as a result of the transition to the final stage of project implementation. Overall progress on the project increased from 71% as of January 1, 2018 to 84% as of June 30, 2018, when investment in the project totaled 354 billion rubles or approximately $6 billion.

Total debt rose 4.2% to 325.5 billion rubles in H1 2018 and net debt was up 14.3% to 301.7 billion rubles. Net debt/EBITDA was 1.7x at the end of the period.

Sibur's gas processing plants (GPPs) processed 10.8 billion cubic meters (bcm) of APG in H1 2018, an increase of 0.7% year-on-year. As a result, natural gas output totaled 9.4 bcm, 0.5% more.

Raw NGL fractionation volumes increased 5.6% year-on-year to 3.7 million tonnes, contributing to an 18.4% increase in LPG sales volumes year-on-year to 2.6 bcm. Natural gas sales volumes stayed almost flat and totaled 9 bcm.

Polypropylene sales increased 5.4% year-on-year to 293,000 tonnes despite a scheduled maintenance shutdown at the Tobolsk production site, which was offset by faster growth of sales of this product from other Sibur facilities and JVs, the company said.

Sales volumes of polyethylene (LDPE) increased 3% year-on-year to 136,000 tonnes as Sibur channeled higher volumes for export, primarily to China and Europe, where the market environment was more favorable. Sales volumes of plastics and organic synthesis products decreased 4.4% year-on-year to 387,000 tonnes following the shifts in shutdowns schedule at some production sites in comparison with the same period of 2017. New contracts boosted sales volumes of elastomers 4.2% year-on-year to 248,000 tonnes.