SIBUR H1 profit down on weak rubber demand, squeezed margins

12 September 2013 11:04  [Source: ICIS news]

LONDON (ICIS)--Russia-based petrochemicals major SIBUR reported on Thursday a 14% year-on-year fall in net profit for the first half of 2013 to Russian roubles (Rb) 25.54bn (€585m, $779m) due to tighter margins and pressure on its synthetic rubber business.

Group revenues fell by 5% over the same period to Rb130bn as a result of a “price correction” for most synthetic rubber grades exacerbated by weak demand, as well as a fall in mineral fertilizer revenues compared to the first half of 2012 as a result of the decision to divest that business.

The mineral fertilizers business was sold at the end of 2011, but some trading in the materials continued through early 2012, the company said.

First-half 2013 results were also down compared to the first half of 2012 as a result of a decision in March this year to deconsolidate earnings for petroleum and natural gas joint venture Yugragazpererabotka from group results, SIBUR added.

The above factors were only partially compensated by solid performance of our energy product group on strong volume growth and an increase in revenue from sales of plastics & organic synthesis products,” the company said in a statement.

Total petrochemicals sales volumes for the first half of the year were 1.06bn tonnes, an 7.8% year on year fall. Basic polymers production was up 2.5% year on year at 201,047 tonnes, while plastics production jumped 13.8% over the same period to 447,670 tonnes.

Synthetic rubber production was up 1.8% in the first half of the year to 216,665 tonnes, while production of intermediates and other chemicals slumped by 5.8% during the period to 1.61bn tonnes.

Profit for the three months ended 30 June this year was Rb9.91bn, a 17% year on year increase, despite a fall in operating profit for the quarter to Rb14.98bn from Rb17bn during the second quarter of 2012.

($1 = €0.75, €1 = Rb 43.63, $1 = Rb32.78)


By: Tom Brown
+44 208 652 3214



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