Sibur sees Q1 IFRS net profit plummet 26% to 15.6 bln rubles
MOSCOW. June 18 (Interfax) - Sibur's net profit to International Financial Reporting Standards (IFRS) plummeted 26% year-on-year in Q1 2013 to 15.6 billion rubles, the petrochemicals company said in a report.
Earnings before taxes, depreciation and amortization (EBITDA) fell 11.1% to 20.5 billion rubles and the EBITDA margin was 31%. "The year-on-year decrease in EBITDA and the EBITDA margin is primarily explained by tighter spreads between feedstock and petrochemicals prices, particularly in the synthetic rubber product group," Sibur said.
Revenue fell 7.6% year-on-year to 66.2 billion rubles.
Sibur attributes the revenue drop to two factors. "First, our revenues from sales of synthetic rubbers decreased on the back of low demand and a significant decline in prices. Second, in the first quarter of 2012, we continued trading activities in favor of the mineral fertilizers business, which had been divested at the end of 2011. Revenue from such trading activities, which we reported as 'trading and other sales' in the first quarter of 2012, is nonrecurring, as these activities were discontinued from the second quarter of 2012," the company said in management discussion and analysis of the first quarter results.
In Q1, its fuel and feedstock segment brought Sibur almost 53% of revenue, an increase of 7% to 35 billion rubles, while revenue from petrochemical product sales was down 14.4% at 28.3 billion rubles.
Operational indicators
Sibur's revenue from synthetic rubber fell most of all amid continuing weak demand - 32% year-on-year to 8.6 billion rubles. Siber did not reduce, but increased the production of basic and special caoutchouk by a respective 3% and 1%, although output of thermo-elastic plastics was down 7.6%. Coupled with a reduction in caoutchouk procurement from third parties, overall production and purchases were down 2.7%. However, sales declined 17% (export sales 21% and domestic sales 9%). The company said caoutchouk inventory in warehouses increased as a result.
Revenue from synthetic rubber sales dropped 20% last year due to stagnant demand, and the company warehoused some product as well.
In Q1, Sibur gas refineries, including those in the joint venture LLC Yugragazpererabotka, increased the processing of associated petroleum gas 5.3% year-on-year to 4.9 billion cubic meters (bcm). As a result, the refineries processed 4.2 bcm of natural gas - 4.2% more than in Q1 last year - and produced 1.3 million tonnes of broad fractions of light hydrocarbons - 12% more than a year earlier.
Natural gas sales revenue was up 26.7% in Q1 at 3.5 bcm, and production was up 6% at 2.9 bcm.
Sales of liquid hydrocarbons, including liquid hydrocarbon gases, naphtha, and broad fractions of light hydrocarbons amounted to 1.1 million tonnes this past Q1, up 11.7% year-on-year.
Production of methyl-tert-butyl ether increased 2% to 114,500 tonnes and 6,500 tonnes was bought from third parties, 10% more than the year before. Sibur increased sales of this product 27% to almost 140,000 tonnes, with domestic sales up 47% at 107,000 tonnes but export sales down 12% at 33,000 tonnes.
Petrochemical product sales amounted to 529,200 tonnes, down 13.3% year-on-year, "primarily attributable to the reclassification of a significant portion of external polypropylene sales to intercompany following the consolidation of BIAXPLEN, as well as lower sales of synthetic rubbers due to weak demand," Sibur said.
