OREANDA-NEWS. OAO SIBUR Holding, a unique integrated gas processing and petrochemicals company, today published its operational and financial results for the three months ended 31 March 2013 in accordance with International Financial Reporting Standards (IFRS).

Operational Results

In the first quarter of 2013, SIBUR’s gas processing plants (GPPs) processed 4.9 billion cubic metres((1) of associated petroleum gas (APG), an increase of 5.3% year-on-year. As a result, production of natural gas(2) rose 4.2% year-on-year to 4.2 billion cubic meters(1). Raw natural gas liquids (raw NGL) production increased by 12% year-on-year to 1.3 million tonnes(1).

In the first quarter of 2013, our natural gas sales volumes increased by 26.7% year-on-year to 3.5 billion cubic meters. External sales of natural gas liquids (NGLs), which comprise liquefied petroleum gases (LPG), naphtha and raw NGL, rose 11.7% year-on-year to 1.1 million tonnes. Sales volumes of petrochemical products totaled 529,203 tonnes, a decrease of 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.
Financial Results

In the first quarter of 2013, SIBUR’s revenue decreased by 7.6% year-on-year to RR 66.2 billion. The decrease was largely attributable to two factors. First, our revenues from sales of synthetic rubbers decreased on the back of low demand. Second, in the first quarter of 2012, we continued trading activities in favour of the mineral fertilisers 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 non-recurring, as these activities were discontinued from the second quarter of 2012. The above factors were only partially compensated by solid performance of our energy product group on strong volume growth despite lower prices and an increase in revenue from sales of plastics and organic synthesis products thanks to higher production and change in scope through consolidation of BIAXPLEN.


Our EBITDA for the first quarter of 2013 amounted to RR 20.5 billion, a year-on-year decline of 11.1%. Our EBITDA margin totaled 31%. The year-on-year decrease in EBITDA and EBITDA margin is primarily explained by tighter spreads between feedstock and petrochemicals prices, particularly in the synthetic rubber product group. Net profit for the first quarter of 2013 totaled RR 15.6 billion.


In the first quarter of 2013, our capital expenditures increased by 81.0% year-on-year to RR 21.5 billion. The increase was attributable to our investments in the development of our feedstock processing and transportation infrastructure as well as in our petrochemical projects in line with our strategic objectives. Our cash from operating activities increased by 5.7% year-on-year and reached RR 23.1 billion.
Borrowings

As of 31 March 2013, our total debt amounted to RR 96.1 billion, almost unchanged from 31 December 2012. Our net debt(1) decreased by 5.5% to RR 77.9 billion as of 31 March 2013 as compared to 31 December 2012.

On 31 January 2013, we placed our debut five-year Eurobond due 2018, raising USD 1 billion in gross proceeds. The coupon rate was set at 3.914% per annum and will be paid semi-annually. The placement enabled us to improve our debt maturity profile, as we used part of the proceeds to replace short-term borrowings. As of 31 March 2013, our net debt to EBITDA ratio was 0.98x compared to 1.00x as of 31 December 2012.