MOSCOW (MRC) -- SIBUR's Board of Directors has approved a new Regulation on Dividend Policy increasing the minimum dividend payout ratio from 35% to 50% of adjusted net profit under IFRS, said the company.
The new policy applies to reporting periods starting from 1 July 2020. The policy matches the industry average global benchmarks of major petrochemical businesses, with the new ratio reflecting the company’s expected deleveraging on the heels of ZapSibNeftekhim’s successful ramp-up and Amur GCC’s kick-off by our joint venture with Sinopec. The dividend policy perfectly fits SIBUR’s plans to make and finance ongoing and future investments.
Dmitry Konov, Chairman of the Management Board at SIBUR Holding: "In recent years, SIBUR has been heavily investing in building up the company’s petrochemical business. With new capacity now on stream, we have boosted the output of high value-added petrochemical products, managing to generate cash flow and deleverage even in the turbulent global market environment. This in turn enabled us to raise dividend payouts while sticking to the schedule of our long-term investment programme featuring Amur GCC as its flagship project."
Earlier it was reported that the revenue of SIBUR Holding PJSC decreased by 1.6% last year and amounted to 523 billion rubles. At the same time, SIBUR increased EBITDA to 179 billion rubles, which is 5.4% more than in 2019.
Earlier it was noted that in December last year, SIBUR Holding chose Spheripol LyondellBasell polyolefin technology for its Amur Gas Chemical Complex (AGHK) under construction. The technological process will be used at a polypropylene plant with a capacity of 400 thousand tons per year, which will be built in the town of Svobodny, Amur Region.
According to MRC's ScanPlast, the total PP production in Russia increased by 31% in 2020 compared to the same indicator in 2019 and amounted to about 1,883 thousand tonnes. The main increase in production volumes was provided by ZapSibNeftekhim.
SIBUR is the largest vertically integrated gas processing and petrochemical company in Russia, uniting a number of production sites in various regions of the Russian Federation. The company sells products to consumers in the fuel and energy complex, automotive, construction, consumer goods, chemical and other industries in more than 80 countries around the world.
MRC