03 April 2013 12:52 [Source: ICIS news]
LONDON (ICIS)--SIBUR’s net profit for 2012 fell by 4.3% year on year to rouble (Rb) 60.1bn (€1.5bn, $1.9bn) as a result of tighter spreads between feedstock and petrochemical prices, “stagnant” demand and weak pricing trends for many of its products, the Russia-based petrochemicals giant said on Wednesday.
The group’s earnings before interest, tax, depreciation and amortisation (EBITDA) also fell by 5.1% year on year to Rb82.3bn, despite a 9.1% increase in revenues in 2012 to Rb271.3bn.
Petrochemical product revenues increased by 3.7% year on year to Rb126.4bn. The figures were in accordance with International Financial Reporting Standards.
According to SIBUR, strategic acquisitions and an increase in production during the year acted as mitigating factors, helping it to compensate for the sluggish market environment.
“We also increased our production and launched new petrochemical capacity,” the company said in an earnings statement.
“This enabled us to more than compensate for the effects of the challenging market environment in petrochemicals, which was volatile throughout 2012 both globally and in Russia, and resulted in stagnant demand and weak pricing trends for majority of our petrochemical products – particularly synthetic rubbers,” it added.
Margins were particularly squeezed for synthetic rubbers production, SIBUR added, while increased transportation expenses, maintenance and staff costs also cut into its EBITDA margin, which was 30.3% for 2012, compared to 34.9% for 2011.
Sales volumes for petrochemical products increased by 4.9% in 2012, compared to 2011, to 2.27m tonnes. Plastics and organic synthesis production levels increased by 39.1% during the year to 844,836 tonnes, while synthetic rubbers production fell by 0.7% year on year to 423,348 tonnes.
Basic polymers production increased by 3.4% year on year to 385,794 tonnes, while production of intermediates and other chemicals rose by 9.5% annually to 3.45m tonnes.
($1 = €0.78, €1 = Rb40.12, $1 = Rb31.31)
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