Moscow, 3 April 2013. ОAO SIBUR Holding, integrated gas processing and petrochemicals company, today published its operational and financial results for the year ended 31 December 2012 in accordance with International Financial Reporting Standards (IFRS).
Operational Results
In 2012, SIBUR’s gas processing plants (GPPs) processed 18.7 billion cubic metres(1) of associated petroleum gas (APG), an increase of 3.8% year-on-year to. As a result, production of natural gas(2) rose 3.6% year-on-year to 16.4 billion cubic metres(1). Raw natural gas liquids (raw NGL) production increased by 1.0% year-on-year to 4.2 million metric tons(1).
In 2012, our natural gas sales volumes increased by 15.6% year-on-year to 10.6 billion cubic metres. External sales of natural gas liquids (NGLs), which comprise liquefied petroleum gases (LPG), naphtha and an insignificant portion of raw NGL, rose 1.9% year-on-year to 4.1 million metric tons. Sales volumes of petrochemical products reached 2.3 million metric tons, an increase of 4.9% year-on-year.
Operational Highlights
| Year ended 31 December | Change,% | |
Metric tons, except as stated
| 2012 | 2011 | |
Processing and production volumes
| |||
APG processing(1) (thousand cubic metres) | 18,709,246 | 18,032,320 | 3.8% |
APG processing, SIBUR’s share(3) (thousand cubic metres) | 12,986,326 | 12,697,565 | 2.3% |
Natural gas production(1) (thousand cubic metres) | 16,371,383 | 15,806,351 | 3.6% |
Natural gas production, SIBUR’s share(3) (thousand cubic metres) | 10,993,627 | 10,864,052 | 1.2% |
Raw NGL production(1) | 4,216,067 | 4,175,843 | 1.0% |
Raw NGL production, SIBUR’s share(3) | 2,870,761 | 2,864,371 | 0.2% |
Basic polymers production | 385,794 | 372,967 | 3.4% |
Synthetic rubbers production | 423,348 | 426,200 | (0.7%) |
Plastics and organic synthesis production | 844,836 | 607,293 | 39.1% |
Intermediates and other chemicals production | 3,445,000 | 3,147,238 | 9.5% |
Sales volumes
| |||
Natural gas sales volumes (thousand cubic metres) | 10,572,284 | 9,144,938 | 15.6% |
NGLs sales volumes | 4,060,897 | 3,986,810 | 1.9% |
MTBE, other fuels & fuel additives sales volumes | 569,454 | 627,776 | (9.3%) |
Petrochemical products sales volumes | 2,269,887 | 2,164,387 | 4.9% |
(1) Including GPPs that are part of SIBUR’s JV with TNK-BP (OOO Yugragazpererabotka) and TNK-BP’s share in processing/production volumes of OOO Yugragazpererabotka.
(2) An equivalent to dry gas, a product of APG processing.
(3) Excluding TNK-BP’s share in processing/production volumes of OOO Yugragazpererabotka.
Financial Results
In 2012, SIBUR’s revenue increased by 9.1% year-on-year to RR 271.3 billion. Revenue growth was driven primarily by energy products on higher production and sales volumes for majority of the products, helped by indexation of regulated natural gas prices and the Russian rouble depreciation against the US dollar on almost flat global oil and oil derivative prices in US dollar terms. Selective acquisitions that we made at the end of 2011 and in early 2012 allowed us to enter new attractive market niches and strengthen our existing positions in the petrochemicals segment. We also increased our production and launched new petrochemical capacity. This enabled us to more than compensate for the effects of the challenging market environment in petrochemicals, which was volatile throughout 2012 both globally and in Russia and resulted in stagnant demand and weak pricing trends for majority of our petrochemical products, particularly synthetic rubbers.
Our 2012, EBITDA amounted to RR 82.3 billion, a year-on-year decline of 5.1%. Our 2012 EBITDA margin totaled 30.3%. The decrease in EBITDA is explained primarily by tighter spreads between feedstock and petrochemical prices, particularly in the synthetic rubber product group, an increase in transportation expenses and higher staff costs due to changes in staff composition, higher social taxes as well as a non-cash charge related to a non-recurring change in treatment of bonus provisions. Additionally there was an increase in repairs and maintenance costs related to the implementation of several programs aimed at further industrial and ecological safety improvement.
Our profit for 2012 totaled RR 60.1 billion, a decrease of 4.3% year-on-year. 2012 net margin amounted to 22.1%.
In 2012, our capital expenditures increased by 33.7% year-on-year to RR 74.3 billion. The growth was attributable to our substantial investments in the development of our feedstock processing and transportation infrastructure as well as in our petrochemical projects in line with our strategic objectives. In 2012, our net cash from operating activities increased by 15.7% year-on-year to RR 62.7 billion.
Financial Highlights
| Year ended 31 December | Change,% | |
RR millions, except as stated
| 2012 | 2011 | |
| |||
Revenue (net of VAT and export duties) | 271,330 | 248,660 | 9.1% |
Energy products | 129,409 | 112,337 | 15.2% |
Petrochemical products
| 126,439
| 121,902 | 3.7% |
Other
| 15,482 | 14,421 | 7.4% |
EBITDA | 82,291 | 86,669 | (5.1%) |
EBITDA margin, % | 30.3% | 34.9% |
|
Profit for the year | 60,085 | 62,799 | (4.3%) |
Profit margin, % | 22.1% | 25.3% |
|
Net cash from operating activities | 62,661 | 54,181 | 15.7% |
Capital expenditures | (74,274) | (55,553) | 33.7% |
Borrowings
As of 31 December 2012, SIBUR’s total debt amounted to RR 96.0 billion, an increase of 15.8% year-on-year. The increase is primarily attributable to raising funds to finance our capital expenditure programme.
Net debt(1) increased by 21.3% year-on-year to RR 82.4 billion as of 31 December 2012 mainly due to growth in total debt. As of 31 December 2012, our net debt to EBITDA ratio was 1.00xcompared to the limit of 2.5x stipulated by SIBUR’s financial policy. Objectives of SIBUR’s financial policy are stricter than the bank covenants included in the Company’s most restrictive credit agreements.
In January 2013, SIBUR placed its debut USD 1 billion Eurobond due 2018. This placement was aimed at short-term debt refinancing and allowed SIBUR to improve the structure and maturity profile of its debt portfolio to be reported in SIBUR’s financial statements for the first quarter 2013.
Borrowings
RR millions, except as stated
| As of 31 December 2012 | As of 31 December 2011 | Changе, % |
Total debt | 95,995 | 82,910 | 15,8% |
Cash and cash equivalents
| 13,570 | 14,971 | (9,4%) |
Net debt | 82,424 | 67,939 | 21,3% |
Key ratios
| |||
Debt/EBITDA | 1,17x | 0,96x |
|
Net debt(1)/EBITDA | 1,00x | 0,78x
|
|
(1) Net debt is calculated as total debt less cash and cash equivalents.
Borrowings by scheduled maturities
RR millions, except as stated
| As of 31 December 2012 | % of total debt | As of 31 December 2011 | % of total debt | Changе, % |
Due for repayment: |
|
|
|
|
|
Within one year | 54,936 | 57.2% | 31,194
| 37.6% | 76.1% |
Between one and two years | 15,175 | 15.7% | 16,364
| 19.7% | (8.1%) |
Between two and five years
| 12,679 | 13.4% | 22,636 | 27.3% | (43.4%)
|
After five years | 13,204 | 13.8% | 12,716 | 15.4% | 3.8% |
Total debt | 95,995 | 100.0%
| 82,910 | 100.0% | 15.8%
|
Full version of the audited combined financial information as of and for the years ended 31 December 2012 and 2011, prepared in accordance with International Financial Reporting Standards (IFRS) is available on our web-site (at http://www.sibur.com/disclosure_info/statements/financial_statements/).
About SIBUR
SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. We own and operate Russia’s largest gas processing business in terms of associated petroleum gas processing volumes and are a leader in the Russian petrochemicals industry.
As of 31 December 2012, SIBUR operated 27 production sites across Russia, had over 1,500 large customers operating in the energy, automotive, construction, fast moving consumer goods, chemical and other industries in approximately 60 countries and employed over 31,000 personnel.