Page 8 - FSUOGM Week 07 2021
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FSUOGM PERFORMANCE FSUOGM
Sibur reports flat profits in 2020
RUSSIA RUSSIA’S leading petrochemicals company According to Sibur’s financial records, Sino-
Sibur reported an IFRS net profit of RUB93bn pec paid RUB18.27bn ($247mn) for the share.
The petrochemicals ($1.3bn) in 2020, which was flat year on year. The overall project’s budget is now estimated at
producer gained from Revenues inched up by 1.6% y/y to RUB523bn, $10bn, from a previous forecast of $10-11bn.
the ramp-up of supply while EBITDA grew 5.4% to RUB179bn, repre- By having a Chinese partner, Sibur will be
at its ZapSibNefteKhim senting a 34.3% margin. able to access the lucrative Chinese market for
complex. In Q4 2020, revenues were up by 13% y/y polyolefins. China is the world’s biggest importer
at RUB154bn, while EBITDA soared 30% to of PP and PE. The Russian firm wants to market
RUB57bn and adjusted net profit increased by Amur GCC’s output elsewhere in Southeast Asia
9.3% to RUB24.5bn. as well.
Commenting on its operations, Sibur noted Overall Sibur PE sales were up fivefold y/y
that its flagship ZapSibNeftekhim project in in 2020 at 1.3mn tonnes, thanks to ZapSib-
Western Siberia had reached its full capacity of NefteKhim ramping up supply, while PE sales
1.5mn tonnes per year of PE. The facility pro- expanded 51.7% to 1.1mn tonnes.
duced its first polymers in October 2019. The company also noted that US financial
Sibur also plans to finish its Amur gas chem- group MSCI had revised its environmental,
ical complex (GCC) by mid-2024 and under the social and governance (ESG) rating from B to
original budget, the company’s chairman Dmi- BB. Sustainalytics also reduced Sibur’s ESG risk
try Konov said on February 12. Preliminary con- rating to low at the end of last year. Sibur now
struction work began at the site in August. ranks in the top 20 of the 444 global petrochem-
Situated in the Amur region bordering ical companies rated by the agency. ESG ratings
China, the plant is expected to produce 2.3mn are a growing concern to Russian companies as
tpy of polyethylene (PE) and 400,000 tpy of poly- investors and buyers become increasingly cli-
propylene (PP). It will be supplied with 3.5mn mate conscious.
tpy of ethane and LPG feedstock produced at Sibur’s net debt to EBITDA ratio remains
Gazprom’s Amur gas processing plant (GPP), unchanged at 2.2.
which is due to start handling Russian gas en “In 2020, Sibur delivered an increase in key
route to China via the Power of Siberia pipeline financial and operating results and maintained
starting in 2023. high margins despite a challenging macroeco-
Sibur has repeatedly delayed taking a final nomic environment,” Konov said in a statement.
investment decision (FID) on the project “This was possible above all due to the launch of
because of difficulties attracting partners to ZapSibNeftekhim and cost optimisation meas-
cover some of the expenses and risks. How- ure. Despite partial optimisation of our invest-
ever, it finally closed the sale of a 40% stake in ment programme, we maintained our focus on
Amur GCC to China’s Sinopec following years expanding our petrochemical business and con-
of negotiations. tinued implementing our key projects.”
P8 www. NEWSBASE .com Week 07 17•February•2021
