9 November 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 nine months ended 30 September 2017.
KEY HIGHLIGHTS
- Total revenue increased by 8.7% year-on-year;
- Associated petroleum gas (APG) processing volumes remained largely flat(1) year-on-year;
- Natural gas production volumes remained largely flat (1) year-on-year;
- Raw natural gas liquids (raw NGL) fractionation volumes increased by 7.3%(2) year-on-year;
- LPG production volumes increased by 4.0% year-on-year;
- PP & PE sales volumes increased by 16.6% year-on-year;
- Elastomers sales volumes increased by 7.7% year-on-year.
Nine months ended 30 September | Change, % | ||
---|---|---|---|
2017 | 2016 | ||
Revenue (RR millions) | |||
Total external revenue |
326,259 |
300,243 |
8.7% |
Feedstock & Energy |
127,529 |
123,218 |
3.5% |
Olefins & Polyolefins |
64,350 |
62,474 |
(3.0%) |
Plastics, Elastomers & Intermediates |
110,161 |
98,384 |
12.0% |
Unallocated |
24,219 |
16,167 |
49.8% |
Processing and production volumes ( thousand tonnes, except as stated) | |||
APG processing (1) (million cubic metres) |
16,862 |
16,812 |
(0.3%) |
APG processing, SIBUR's share (3) (million cubic metres) |
16,489 |
16,458 |
(0.2%) |
Natural gas production (1) (million cubic metres) |
14,613 |
14,571 |
(0.3%) |
Natural gas production, SIBUR's share (3) (million cubic metres) |
14,330 |
14,298 |
(0.2%) |
Raw NGL fractionation (2) | 6,392 |
5,960 |
7.3% |
Raw NGL fractionation, SIBUR’s share |
5,492 |
5,329 |
3.1% |
Sales volumes ( thousand tonnes, except as stated) | |||
Natural gas (million cubic metres) |
13,678 |
13,685 |
(0.1%) |
LPG | 3,542 | 3,488 | (1.6%) |
Naphtha | 669 | 993 | (32.6%) |
Petrochemical products, including | 2,695 | 2,517 | 7.1% |
Polyolefins (PP, PE, BOPP-films) | 573 | 663 | 13.7% |
Elastomers | 361 | 335 | 7.7% |
Plastics and organic synthesis products | 583 | 588 | (0.9%) |
MTBE and fuel additives | 501 | 491 | (2.0%) |
OPERATIONAL HIGHLIGHTS
External Revenue
In the nine months ended 30 September 2017, our revenue increased by 8.7% to RR 326,259 million on higher revenue across all segments.
- Feedstock & Energy: external segment revenue increased by 3.5% to RR 127,529 million on positive dynamics of international benchmarks for liquids largely offset by Russian rouble appreciation and lower external sales volumes of liquids, which was attributable to the lower raw NGL purchases and higher internal use as petrochemicals feedstock at our crackers.
- Olefins & Polyolefins: external segment revenue increased by 3.0% to RR 64,350 million primarily due to higher polyolefin revenues on higher sales volumes partially negated by lower selling prices. Increase in polyolefin sales volumes was mainly driven by higher capacity utilisation, as well as lower inventory accumulation. This was substantially offset by decrease in BOPP-films revenues on (i) lower selling prices, as positive dynamics in international market prices was fully negated by the Russian rouble appreciation, (ii) lower spreads between BOPP and PP that drive export prices, and (iii) higher share of contract sales on highly competitive export markets.
- Plastics, Elastomers & Intermediates: external segment revenue increased by 12.0% to RR 110,161 million largely due to the highly favorable market environment for elastomers in the first half of 2017, as well as higher sales of intermediates and other chemicals.
- Unallocated revenue increased by 49.8% to RR 24,219 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
Nine months ended 30 September |
Change, % |
||
---|---|---|---|
RR millions, except as stated | 2017 | 2016 | |
NGLs |
23,864 |
17,351 |
37.5% |
APG |
19,070 |
16,662 |
14.5% |
Paraxylene |
5,079 |
5,152 | (1.4%) |
In the nine months ended 30 September 2017, we observed an increase in our expenses related to hydrocarbon feedstock purchases. This was mainly attributable to higher feedstock purchase prices despite lower purchasing volumes for NGLs and flat APG purchasing volumes.
- NGLs: purchasing expenses increased by 37.5% to RR 23,864 million despite lower purchasing volumes due to the increase in average purchase price by RR 4,121 per tonne (61.3%) largely on higher international benchmarks for liquids resulted in the respective export netbacks dynamics, which was only partially compensated by Russian rouble appreciation.
- APG: purchasing expenses increased by 14.5% to RR 19,070 million due to the increase in average purchase price by RR 144 per bcm (14.2%) on higher international benchmarks for liquids, while purchasing volumes were almost flat.
- Paraxylene: purchasing expenses decreased by 1.4% to RR 5,079 million due to lower average purchase price despite higher purchasing volumes.
Capital Expenditures
The following table presents data on financing of our key investment projects for the nine months ended
30 September 2017 and 2016:
RR millions, except as stated | Nine months ended 30 September | Completion | ||
---|---|---|---|---|
Location | Description | 2017 | 2016 | |
Tobolsk | ZapSibNeftekhim |
68,780 |
96,698 |
2019 |
Tobolsk / Kaluga region | Logistic hub for polymers distribution |
5,136 |
929 |
2019 |
Perm | New DOTP production | 312 | 273 | 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 and shifts in payment schedule with our EP-contractors in 2017.
Borrowings
Total Debt and Net Debt
RR millions, except as stated |
As of 30 September 2017 |
As of 30 June 2017 |
As of 31 December 2016 |
Changе, % 30 Sep 2017 vs 30 Jun 2017 |
Changе, % 30 Sep 2017 vs 31 Dec 2016 |
---|---|---|---|---|---|
Total debt | 299,995 | 302,399 | 341,813 | (0.8%) | (12.2%) |
Debt excluding related to ZapSibNeftekhim | 133,745 | 134,693 | 182,128 | (0.7%) | (26.6%) |
ZapSibNeftekhim related debt | 166,250 | 167,706 | 159,68 5 | (0.9%) | (4.1%) |
Cash and cash equivalents | 45,657 | 41,216 | 60,635 | 10.8% | (24.7%) |
Net debt | 254,338 | 261,183 | 281,178 | 2.6% | (9.5%) |
Net debt excluding related to ZapSibNeftekhim | 103,247 | 118,989 | 163,369 | 13.2% | (36.8%) |
ZapSibNeftekhim related net debt | 151,091 | 142,194 | 117,809 | 6.3% | (28.3%) |
Debt / EBITDA | 2.0x | 2.0x | 2.4x | ||
Net debt (4) / EBITDA (5) , including | 1.7x | 1.7x | 2.0x | ||
Net debt excluding related to ZapSibNeftekhim | 0.7x | 0.8x | 1.2x | ||
ZapSibNeftekhim related net debt | 1.0x | 0.9x | 0.8x | ||
Net debt / EBITDA (in USD) | 1.7x | 1.8x | 2.2x |
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 30 September 2017 | % of total borrowings | As of 30 June 2017 | % of total borrowings | As of 31 December 2016 | % of total borrowings | Change, % |
---|---|---|---|---|---|---|---|
Due for repayment: | |||||||
Within one year | 38,711 | 12.9% | 39,594 | 13.1% | 22,188 | 6.5% | 74.5% |
Between one and two years | 32,879 | 11.0% | 7,456 | 2.5% | 41,580 | 12.2% | (20.9%) |
Between two and five years | 68,088 | 22.7% | 115,522 | 38.2% | 135,411 | 39.6% | (49.7%) |
Between five and ten years | 46,914 | 15.6% | 24,764 | 8.2% | 25,540 | 7.5% | (83.7%) |
After ten years | 113,404 | 37.8% | 115,062 | 38.0% | 117,094 | 34.3% | (3.2%) |
Total debt | 299,995 | 100.0% | 302,397 | 100.0% | 341,813 | 100.0% | (12.2%) |
Debt Currency Structure
RR millions, except as stated | As of 30 September 2017 | % of total borrowings | As of 30 June 2017 | % of total borrowings | As of 31 December 2016 | % of total borrowings | Change, % |
---|---|---|---|---|---|---|---|
Denominated in: | |||||||
Russian rouble | 74,851 | 25.0% | 74,432 | 24.6% | 97,690 | 28,6% | (23.4%) |
Euro | 56,450 | 18.8% | 56,168 | 18.6% | 45,156 | 13.2% | (25.0%) |
US Dollar | 168,694 | 56.2% | 171,799 | 56.8% | 198,967 | 58.2% | (15.2%) |
Total debt | 299,995 | 100.0% | 302,399 | 100.0% | 341,813 | 100.0% | (12.2%) |
- Total debt: a 12.2% decrease vs. 31 December 2016 to RR 299,995 million was mainly attributable to substantial repayment of conventional debt, partially offset by new drawdowns from ECA-backed credit facilities for ZapSibNeftekhim funding.
- Net debt: a 9.5% decrease vs. 31 December 2016 to RR 254,338 million on the back of decreasing total debt and financing of ZapSibNeftekhim capital expenditures from the additional cash balances mobilised from AO Uralorgsintez divestment.
- Credit lines: RR 236,159 million was available as of 30 September 2017 under existing credit facilities denominated in Russian roubles, US dollars and euros, both short- and long-term, of which an equivalent of RR 122,230 million was committe.
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.
(4) Net debt represents total debt less cash and cash equivalents.
(5) Unaudited data.