30 May 2017
PAO SIBUR Holding, an integrated gas processing and petrochemicals company and a leader in the Russian petrochemicals industry, today publishes limited operational update for the three months ended 31 March 2017.
KEY HIGHLIGHTS
- Total revenue increased by 5.8% year-on-year;
- Associated petroleum gas (APG) processing volumes decreased by 3.4% ( [1] ) year-on-year;
- Natural gas production volumes decreased by 3.3% (1) year-on-year;
- Raw natural gas liquids (raw NGL) fractionation volumes increased by 2.2% ( [2] ) year-on-year;
- LPG production volumes increased by 3.3% year-on-year;
- Elastomers sales volumes increased by 15.2% year-on-year.
Three months ended 31 March |
Change
,
% |
||
---|---|---|---|
2017 | 2016 | ||
Revenue (RR millions) | |||
Total external revenue | 107,287 | 101,382 | 5.8% |
Feedstock & Energy | 41,282 | 41,132 | 0.4% |
Olefins & Polyolefins | 21,400 | 22,129 | (3.3%) |
Plastics, Elastomers & Intermediates | 38,233 | 33,481 | 14.2% |
Unallocated | 6,372 | 4,640 | 37.3% |
Processing and production volumes ( thousand tonnes, except as stated) | |||
APG processing (1) (million cubic metres) | 5,457 | 5,647 | (3.4%) |
APG processing, SIBUR's share (3) (million cubic metres) | 5,326 | 5,522 | (3.5%) |
Natural gas production (1) (million cubic metres) | 4,738 | 4,897 | (3.3%) |
Natural gas production, SIBUR's share (3) (million cubic metres) | 4,638 | 4,802 | (3.4%) |
Raw NGL fractionation (2) | 2,060 | 2,016 | 2.2% |
Raw NGL fractionation, SIBUR’s share | 1,760 | 1,716 | 2.6% |
Sales volumes ( thousand tonnes, except as stated) | |||
Natural gas (million cubic metres) | 4,437 | 4,575 | (3.0%) |
LPG | 1,067 | 1,144 | (6.7%) |
Naphtha | 207 | 344 | (39.9%) |
Petrochemical products, including | 932 | 889 | 4.8% |
Polyolefins (PP, PE, BOPP-films) | 245 | 241 | 1.6% |
Elastomers | 130 | 113 | 15.2% |
Plastics and organic synthesis products | 193 | 190 | 1.5% |
MTBE and fuel additives | 179 | 179 | (0.1%) |
OPERATIONAL HIGHLIGHTS
External Revenue
Three months ended 31 March |
Change,
% |
||
---|---|---|---|
RR millions, except as stated | 2017 | 2016 | |
External revenue (net of VAT and export duties) | |||
Feedstock & Energy | 41,282 | 41,132 | 0.4% |
Olefins & Polyolefins | 21,400 | 22,129 | (3.3%) |
Plastics, Elastomers & Intermediates | 38,233 | 33,481 | 14.2% |
Unallocated | 6,372 | 4,640 | 37.3% |
Total | 107,287 | 101,382 | 5.8% |
In the first quarter of 2017, our revenue increased by 5.8% to RR 107,287 million with elastomers being the key contributor to the growth. Average Russian rouble appreciation partially offset the growth in international benchmark prices across the product portfolio.
- Feedstock & Energy : external segment revenue was almost flat at RR 41,282 million. Higher LPG revenue on positive dynamics in international benchmarks was largely offset by lower naphtha sales and termination of raw NGL sales. Following the expansion of fractionation capacity in 2016, we ceased external sales of raw NGL and increased internal use of LPG and naphtha as petrochemicals feedstock at our crackers.
- Olefins & Polyolefins : external segment revenue decreased by 3.3% to RR 21,400 million primarily as a result of lower selling prices for polyolefins and BOPP-films, as positive dynamics in international market prices was fully negated by the Russian rouble appreciation, as well as changes in our BOPP-films geographical export sales mix.
- Plastics, Elastomers & Intermediates : external segment revenue increased by 14.2% to RR 38,233 million due to higher elastomers revenue on a significant increase in selling prices resulted from spiked Asian demand and the respective increase in our commodity rubber capacity load. This was partially offset by lower revenue from MTBE and fuel additives on lower prices.
- Unallocated revenue increased by 37.3% to RR 6,372 million, which was driven by higher revenue from NIPIGAZ services and sales of power following the acquisition of Tobolsk Heating and Power Plant in February 2016.
Key Feedstock Purchases
Three months ended 31 March |
Change,
% |
||
---|---|---|---|
RR millions, except as stated | 2017 | 2016 | |
NGLs | 8,861 | 6,283 | 41.0 % |
APG | 6,378 | 6,276 | 1.6 % |
Paraxylene | 1,974 | 1,863 | 6.0 % |
In the first quarter of 2017, we observed an increase in our expenses related to hydrocarbon feedstock purchases. This was largely attributable to higher feedstock purchase prices despite lower purchasing volumes.
- NGLs : purchasing expenses increased by 41.0% to RR 8,861 million despite lower purchasing volumes due to the increase in average purchase price on higher international benchmarks.
- APG : purchasing expenses increased by 1.6% to RR 6,378 million despite lower purchasing volumes due to the increase in average purchase price on higher international benchmarks for liquids.
- Paraxylene : purchasing expenses increased by 6.0% to RR 1,974 million due to the increase in purchasing volumes, while average purchase price remained largely flat.
Capital Expenditures
The following table presents data on financing of our key investment projects for the three months ended
31 March 2017 and 2016:
RR millions (net of VAT) | Three months ended 31 March | Completion | ||
---|---|---|---|---|
Location | Description | 2017 | 2016 | |
Tobolsk | ZapSibNeftekhim | 16,557 | 42,733 | 2019 |
Tobolsk / Central Federal District | Logistic hub for polymers distribution | 725 | 102 | 2019 |
The decrease in ZapSibNeftekhim financing was attributable to substantial advances paid in the first quarter of 2016 ahead of equipment deliveries under contract terms.
Borrowings
Total Debt and Net Debt
RR millions, except as stated |
As of
31 March 2017 |
As of
31 December 2016 |
Changе, % |
---|---|---|---|
Total debt | 309,191 | 341,813 | (9.5%) |
Debt excluding related to ZapSibNeftekhim | 158,761 | 182,128 | (12.8%) |
ZapSibNeftekhim related debt | 150,429 | 159,68 5 | (5.8%) |
Cash and cash equivalents | 57,205 | 60,635 | (5.7%) |
Net debt | 251,985 | 281,178 | (10.4%) |
Net debt excluding related to ZapSibNeftekhim | 136,163 | 163,369 | (16.7%) |
ZapSibNeftekhim related net debt | 115,822 | 117,809 | (1.7%) |
Debt / EBITDA | 2.1x | 2.4x | |
Net debt (1) / EBITDA (2) , including | 1.7x | 2.0x | |
Net debt excluding related to ZapSibNeftekhim | 0.9x | 1.2x | |
ZapSibNeftekhim related net debt | 0.8x | 0.8x |
Debt Maturity Profile
The following table presents scheduled maturities of our outstanding debt as of the dates indicated:
RR millions, except as stated | As of 31 March 2017 | % of total borrowings | As of 31 December 2016 | % of total borrowings | Change, % |
---|---|---|---|---|---|
Due for repayment: | |||||
Within one year | 45,864 | 14.8% | 22,188 | 6.5% | 106.7% |
Between one and two years | 5,601 | 1.8% | 41,580 | 12.2% | (86.5%) |
Between two and five years | 129,421 | 41.9% | 135,411 | 39.6% | (4.4%) |
Between five and ten years | 18,965 | 6.1% | 25,540 | 7.5% | (25.7%) |
After ten years | 109,340 | 35.4% | 117,094 | 34.3% | (6.6%) |
Total debt | 309,191 | 100.0% | 341,813 | 100.0% | (9.5%) |
Debt Currency Structure
RR millions, except as stated | As of 31 March 2017 | % of total borrowings | As of 31 December 2016 | % of total borrowings | Change, % |
---|---|---|---|---|---|
Denominated in: | |||||
Russian rouble | 90,141 | 29% | 97,690 | 29% | (7.7%) |
Euro | 43,690 | 14% | 45,156 | 13% | (3.2%) |
US Dollar | 175,360 | 57% | 198,967 | 58% | (11.9%) |
Total debt | 309,191 | 100.0% | 341,813 | 100.0% | (9.5%) |
- Total debt : a 9.5% decrease vs. 31 December 2016 to RR 309,191 million was mainly attributable to the Russian rouble appreciation as RR/USD rate decreased by 7.1% to 56.4 as of 31 March 2017 from 60.7 as of 31 December 2016, as well as to the repayment of the debt denominated primarily in foreign currencies.
- Net debt: a 10.4% decrease 31 December 2016 to RR 251,985 million was attributable to the decrease in total debt on the Russian rouble appreciation and relatively low financing of ZapSibNeftekhim capital expenditures from the cash balances.
- Credit lines: RR 184,287 million was available as of 31 March 2017 under existing credit facilities denominated in Russian roubles, US dollars and euros, both short- and long-term, of which an equivalent of RR 105,198 million committed.
The published data may be revised when we publish the IFRS unaudited consolidated interim condensed financial information for the first half of 2017 and supporting MD&A.
( [1] ) Including JVs’ share in the processing / production volumes.
( [2] ) Including fractionation volumes under processing arrangements.
(3) Excluding JVs’ share in the processing / production volumes.
(1) Net debt represents total debt less cash and cash equivalents and bank deposits.
(2) Unaudited data for the first quarter of 2017.