ZAO SIBUR Holding reports its audited combined financial information (1) for the year ended 31 December 2011, prepared in accordance with International Financial Reporting Standards (“IFRS”).
In 2011, our full year revenues increased by 31.9% year-on-year to RR 248,660 million from RR 188,563 million in 2010. The growth was attributable to higher production volumes, positive demand trends, strong pricing environment for both energy and petrochemical products, and our efforts to enhance sales efficiency.
In 2011, our EBITDA totaled RR 86,669 million, increasing from RR 58,178 million in 2010 or by 49.0%. Our 2011 EBITDA margin reached 34.9%.
Net profit for the year surged 54.2% to RR 62,799 million from RR 40,737 million in 2010, for a profit margin of 25.3%.
|Year ended 31 December||Change, %|
|Millions of Russian roubles except as stated||2011||2010|
|Total revenues (net of VAT and export duties)||248,660||188,563||31.9%|
|Energy products (Natural gas, LPG, MTBE, Naphtha, etc.)||112,396||79,809||40.8%|
|EBITDA margin, %||34.9%||30.9%|
|Operating margin, %||31.6%||27.5%|
|Profit for the year||62,799||40,737||54.2%|
|Profit margin, %||25.3%||21.6%|
In 2011, SIBUR’s gas processing plants (GPPs) processed over 18 billion cubic meters of APG, produced 15.8 billion cubic meters of natural gas (2) and 4.2 million metric tons of natural gas liquids (NGL). We also produced 4.5 million metric tons of petrochemical products (3).
In 2011, natural gas sales volumes declined by 5.8% compared to 2010, due to the transfer of our GPP in Nyagan, OOO Nyagangazpererabotka, to our JV with TNK-BP, which increased the overall volumes of natural gas produced by our GPPs but decreased SIBUR’s share.
Sales volumes of liquid hydrocarbons, which comprise liquefied petroleum gases (LPG), naphtha and an insignificant portion of NGL, increased by 20.9% compared to 2010 due to higher production and purchases from third parties. Sales volumes of MTBE and other fuel additives and fuels increased by 10.8% on the back of increased production.
Petrochemicals sales volumes increased slightly as production growth was partially offset by stock accumulation at the end of 2011. The stock accumulation was primarily due to change of our marketing and distribution strategy with a view of getting direct access to customers through elimination of intermediaries. While this increased average transportation distances and required accumulation of stock at our regional warehouses, we expect this to strengthen our market positions and enhance sales efficiency in the future.
|Year ended 31 December||Change %|
|Feedstock Processing and Production|
|APG processing (4) (thousand cubic meters)||18,032,320||17,453,926||3.3%|
|APG processing, SIBUR share (5) (thousand cubic meters)||12,697,565||12,963,731||(2.1%)|
|Natural gas production(4) (thousand cubic meters)||15,806,351||15,325,007||3.1%|
|Natural gas production, SIBUR sharу (5) (thousand cubic meters)||10,864,052||11,154,101||(2.6%)|
|NGL production (4) (metric tons)||4,175,843||3,954,516||5.6%|
|NGL production, SIBUR share (5) (metric tons)||2,864,371||2,627,054||9.0%|
|Production of petrochemical products (3) (metric tons)||4,546,460||4,171,688||9.0%|
|Natural gas sales volumes (thousand cubic meters)||9,165,517||9,734,209||(5.8%)|
|Hydrocarbon liquids sales volumes (metric tons)||3,986,810||3,298,682||20.9%|
|MTBE and other fuel additives sales volumes (metric tons)||626,625||565,415||10.8%|
|Petrochemical products sales volumes (metric tons)||2,142,011||2,129,365||0.6%|
As of 31 December 2011, our total borrowings amounted to RR 82,910 million compared to RR 58,698 million as of 31 December 2010, an increase of RR 24,212 million or 41.2% year-on-year. The increase was attributable to additional long-term borrowings to finance our capital expenditure program and transactions that resulted in changes in the shareholder structure. The maturity and currency profile of our debt portfolio improved in line with our financial policy objectives.
As of 31 December 2011, cash and cash equivalents amounted to RR 14,971 million, net debt to RR 67,939 million, increasing from RR 43,282 million as of December 2010. As of 31 December 2011, net debt/EBITDA amounted to 0.78х.
Debt Maturity Profile
|Year ended 31 December|
|Millions of Russian roubles except as stated||2011||% of total borrowings||2010||% of total borrowings||Change %|
|Year ended 31 December|
|Millions of Russian roubles except as stated||2011||2010|
|Cash and cash equivalents||14,971||15,416|
|Net debt (6) /EBITDA||0.78x||0.74x|
|EBITDA/interest expenses (7)||34x||18x|
Full version of the combined financial information for the years ended 31 December 2011, 2010 and 2009, prepared in accordance with International Financial Reporting Standards (“IFRS”) is available on our web-site at www.sibur.com or using the link.
(1) The combined financial information excludes the results of the mineral fertilizers and tires businesses, which were divested by SIBUR in December 2011, for all the reporting periods. The combined financial information forms a proper basis for analysis of the underlying performance of the Group as it provides fully comparable data for the periods under review. In addition to the combined financial information, SIBUR releases consolidated financial statements that include the results of the divested assets.
(2) Hereinafter “natural gas” means “dry gas”, a product of APG processing that is used as usual natural gas.
(3) Including intermediates, which are used by SIBUR for further processing and production of higher value-added petrochemical products. In 2011, approximately 80% of the total intermediates production volumes were used for further processing.
(4) Including TNK-BP share in OOO Yugragazpererabotka processing/production volumes.
(5) Excluding TNK-BP share in OOO Yugragazpererabotka processing/production volumes.
(6) Net Debt is calculated as Gross Debt decreased by cash and cash equivalents
(7) EBITDA/interest expenses is calculated as EBITDA divided by interest expenses
SIBUR is the largest integrated petrochemical company in Russia as well as in CIS and Central and Eastern Europe as measured by revenues. We purchase associated petroleum gas and liquid hydrocarbon feedstock from major Russian oil and gas companies and process them into energy products, including liquefied petroleum gases, natural gas and naphtha and further into various petrochemical products, including basic polymers, synthetic rubbers, plastics, products of organic synthesis, intermediates and other chemicals. We sell to over 2,000 customers in the energy, automotive, construction, retail and other industries in more than 60 countries. As of 31 December 2011 SIBUR owned and operated 22 production sites across Russia and employed approximately 30,200 people.
SIBUR is controlled by a group of shareholders led by Mr. Leonid Mikhelson, the CEO and founder of NOVATEK. Our shareholding structure is as follows: Mr. Leonid Mikhelson – 57.5%, Mr. Gennady Timchenko (a co-founder of the independent oil-trading company Gunvor) – 37.5% and a group of current and former senior SIBUR managers – 5%.
This press release can contain forward-looking statements, based on the current expectations and projections of the Company about future events and are subject to change without notice. All statements, other than statements of historical fact, contained herein are forward-looking statements. Forward-looking statements are subject to inherent risks and uncertainties, such that future events and actual results may differ materially from those set forth in, contemplated by or underlying such forward-looking statements. The Company may not actually achieve or realize its plans, intentions or expectations. There can be no assurance that the Company's actual results will not differ materially from the expectations set forth in such forward-looking statements. Factors that could cause actual results to differ from such expectations include, but are not limited to, the state of the global economy, the ability of the petrochemical sector to maintain levels of growth and development, risks related to petrochemical prices and regional political and security concerns. The above is not an exhaustive list of the factors that could cause actual results to differ materially from the expectations set forth in such forward-looking statements. The Company and its Affiliates are under no obligation to update the information, opinions or forward-looking statements in this press release. The material contained in this press release is presented solely for information purposes and is not to be construed as providing investment advice. As such, it has no regard to the specific investment objectives, financial situation or particular needs of any recipient.