Russia's SIBUR 9 month net profit down 14.7% on forex losses

12 December 2013 10:49  [Source: ICIS news]

MOSCOW (ICIS)--SIBUR's net profit for the first nine months of 2013 fell by 14.7% year on year to Roubles (Rb) 38.54bn ($1.18bn, €853m) due to the impact of foreign currency loss, the Russian petrochemical holding said on Thursday.

Revenue was largely flat at Rb198bn, down slightly from Rb199bn during the same period last year. The company said its energy product group delivered strong performance on higher sales volumes.

Improved performance of SIBUR's plastics and organic synthesis products group was supported by production growth following the commercial launch of the second production line of expandable polystyrene in Perm, and consolidation of the BIAXPLEN Group, both completed in 2012, as well as favourable price environments for certain products, the company said.

However, SIBUR reported lower revenue from sales of synthetic rubbers, intermediates and other chemicals, as the company's synthetic rubber business remained under significant pressure due to weak demand in key markets and continued price correction for the majority of synthetic rubber grades.

The decline in revenue from sales of intermediates and other chemicals followed decommissioning of an outdated chlorine and caustic soda production facility which was completed in April 2013, the company said.

Sales volumes of all petrochemical products for the first nine months totalled 1.6m tonnes, 5% down year on year, according to the company.

Meanwhile, basic polymers production amounted to 275,076 tonnes, 2.9% down year on year, synthetic rubbers output reached 304,983 tonnes, 1% up year on year, and plastics and organic synthesis production was reported at 638,255 tonnes, up by 5.3% year on year, the company said.

SIBUR'S results were reported in accordance with International Financial Reporting Standards (IFRS).

($1 = Rb32.78, €1 = Rb45.20)

By: Sergei Blagov
+44 20 8652 3214

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