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SIBUR Q4 profits jump on ZapSibNeftekhim complex ramp-up

February 12/2021

MOSCOW (MRC) - SIBURs fourth-quarter adjusted profit rose 9% year on year on the back of the ramp-up of capacity at its ZapSibNeftekhim petrochemicals complex, which reached its full design capacity, said the company.

The companys EBITDA margin increased to 37.2% in the fourth quarter from 32.3% a year earlier. The ramp-up to full design capacity ahead of schedule at ZapSibNefthekhim, the companys world-scale petrochemical complex at Tobolsk, Russia, drove earnings and sales higher, the company says.

Fourth-quarter EBITDA at SIBUR's olefins and polyolefins segment more than doubled to R28.3 billion YOY and was up 13.1% quarter on quarter (QOQ). Growth was mainly due to increasing spreads for polypropylene (PP) and polyethylene (PE) amid a gradual recovery of demand in China, the company says.

Revenue in the olefins and polyolefins segment rose sharply in the fourth quarter by 80.2% YOY to R67.5 billion and was up 12.6% QOQ due to positive dynamics in prices of PE and PP, the company says. Segment sales volumes more than doubled YOY to 773,800 metric tons with PE sales volumes jumping more than six fold to 391,000 metric tons and PP volumes growing 30.5% to 291,000 metric tons.

Full-year production at the olefins and polyolefins segment increased 89.7% as ZapSibNeftekhim reached its design capacity utilization rate, with PE output more than tripling and PP production increasing 36.2%. Total sales volumes by the olefins and polyolefins business more than doubled in 2020 to 2.8 million metric tons (MMt) and export sales more than tripled, accounting for more than a half of total sales volumes. SIBUR's PE sales volumes increased five fold in 2020 to 1.3 MMt and PP sales volumes increased 51.7% to 1.1 MMt. The average utilization rate of ZapSib in 2020 was 82%, SIBUR says.

As MRC informed earlier, SUBUR also began construction on a large-scale gas chemical complex in Amur, near the Chinese boarder, to be carried out as a 60-40 joint venture with Sinopec.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers' inventories as of 1 January, 2020).

SIBUR is a uniquely positioned vertically integrated gas processing and petrochemicals company. We own and operate Russias largest gas processing business in terms of associated petroleum gas processing volumes and are a leader in the Russian petrochemicals industry. As of 31 March 2014, SIBUR operated 27 production sites located all over Russia, had over 1,400 large customers engaged in the energy, chemical, fast moving consumer goods (FMCG), automotive, construction and other industries in approximately 70 countries worldwide and employed over 27,000 personnel.
Author:Anna Larionova
Tags:petroleum products, PP, PE, neftegaz, petrochemistry, Sinopec, Amurskiy GHK, ZapSibNeftekhim, Sibur Holding, Russia.
Category:General News
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