MOSCOW (MRC) -- Operational efficiency continues to improve thanks to SIBUR’s investment in high-tech solutions and focus on higher productivity, as per the company's press release.
In the first half of 2018, SIBUR’s gas processing plants (GPPs) processed 10.8 billion cubic metres2 of APG, an increase of 0.7% year-on-year. As a result, natural gas output totalled 9.4 billion cubic metres2. Raw NGL fractionation volumes increased by 5.6% year-on-year to 3.7 million tonnes,1 contributing to an 18.4% increase in LPG sales volumes year-on-year to 2.6 billion cubic metres. Natural gas sales volumes stayed almost flat and totalled 9 billion cubic metres.
Continuing growth of demand for petrochemicals helped to increase sales volumes of most products in this segment. Sales volumes of polypropylene increased by 5.4% year-on-year to 293 thousand tonnes despite a scheduled maintenance shutdown at the Tobolsk production site, which was offset by faster growth of sales of this product from other SIBUR facilities and JVs. Sales volumes of polyethylene (LDPE) increased by 3% year-on-year to 136 thousand tonnes as we channelled higher volumes for export, primarily to China and Europe, where the market environment was more favourable. Sales volumes of plastics and organic synthesis products decreased by 4.4% year-on-year to 387 thousand tonnes following the shifts in shutdowns schedule at some production sites in comparison with the same period of 2017. New contracts boosted sales volumes of elastomers by 4.2% year-on-year to 248 thousand tonnes.
In the first half of 2018, revenue increased by 21.6% year-on-year to RUB 257.7 billion with the following dynamics across the segments:
Growth was driven primarily by the strong performance of the Midstream segment*, where revenue increased by 34.4% year-on-year to RUB 106.5 billion largely due to higher LPG prices and sales volumes.
Olefins & Polyolefins revenue increased by 13% year-on-year to RUB 48.2 billion, mainly due to higher effective average selling prices for PP, BOPP films and ethylene, and following the launch of new facilities and expansion of existing facilities during previous years. Revenue growth in the segment was offset by a slight decline in revenue from polyethylene sales.
Plastics, Elastomers & Intermediates revenue increased by 2.6% year-on-year to RUB 78.2 billion, largely due to positive pricing for plastics and organic synthesis products.
EBITDA increased by 18.7% year-on-year to RUB 89.2 billion, fuelled by the strong performance of the Midstream segment, where EBITDA increased by 58% year-on-year and partially offset by the decrease in EBITDA from the Olefins & Polyolefins segment on the back of tighter polyolefin spreads.
Net profit in the first half of 2018 decreased by 30.3% year-on-year to RUB 45.9 billion largely on the back of a gain recorded in the first half of 2017 from the disposal of JSC Uralorgsintez, versus FX loss incurred in the first half of 2018 due to the depreciation of the ruble against the US dollar and respective euro and revaluation of the Company’s FX-denominated debt.
Capital expenditures5 increased by 44.3% year-on-year to RUB 70.3 billion as spending on ZapSib rose as a result of the transition to the final stage of project implementation. Overall progress on the project increased from 71% as of 1 January 2018 to 84% as of 30 June 2018. As of 30 June 2018 investment in the project totalled RUB 354 billion, or approximately USD 6 billion.
MRC