Driven by a massive hike in petrochemicals sales, revenues for the six months to June 30, 2015 at Russian integrated gas processing and petrochemicals company Sibur grew 5.6 per cent year on year.
“In the first half of 2015, revenue increased 5.6 per cent to RR 181,397 million compared to RR 171,712 million in the first half of 2014,” a Sibur press release informed.
This was driven by a steep 44.9 per cent over the same period of 2014 from sales of petrochemical products which touched RR 86,841 million.
Sibur attributed this to higher PP production following a year-on-year increase in Tobolsk polymer plant average capacity utilisation rate that resulted in a 52.6 per cent increase in sales of basic polymers.
Alongside, sales volumes of petrochemical products in the reporting period too soared 30.0 per cent over the year ago period, while PP production volumes drove up 69.5 per cent from the first half of 2014.
Sibur added that its revenue from sales of basic polymers in the first half of 2015 also increased massively by 52.6 per cent year on year.
In the first half of 2015, Sibur recorded a 30.6 per cent growth in EBITDA, led by almost five-fold growth in the EBITDA of its petrochemicals segment.
“We recorded the highest EBITDA margin of 35.6 per cent for the Group and our petrochemicals segment recorded 31.4 per cent EBITDA margin,” it informed.
For the period under review, its adjusted profit rose 11.7 per cent to RR 34,307 million as against RR 30,727 million a year earlier.
Its capital expenditures expanded 15.1 per cent to RR 30,537 million in the first half of 2015 vis-à-vis RR 26,520 million in the comparable period of 2015.
“In the first half of 2015, Sibur delivered strong financial results despite the challenging environment, which proves that the strategy of building a vertically integrated company is right,” CEO Dmitry Konov said.
“Starting from the second quarter of 2014, our feedstock & energy business have been affected by the collapsed pricing for the majority of energy products on the back of lower oil prices,” he too added.
“At the same time, the expansion of our petrochemical business helped to partly mitigate the downward profitability trend in our feedstock & energy segment,” Konov stated. (AR)