On Wednesday, Russia’s largest integrated petrochemical firm PJSC SIBUR Holding announced the second quarter and first half of 2020 results of its operations and finance in accordance with International Financial Reporting Standards (IFRS).
SIBUR's complex in western Siberia, ZapSibNefteKhim, continued to raise production volumes. In the first six months of the year, the complex produced 206,000 t of polypropylene (PP) and 507,000 t of polyethylene (PE). The sales of PP soared by 81.6% while that of PE surged by more than 100%.
On a yearly basis, revenues slumped by 11.6% due to the unprofitable price dynamics in most of its product groups. However, the olefins and polyolefins sector posted a jump of 58.2% due to the increases in sales from PP and PE.
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) lost 14.2% year-on-year due to the negative price dynamics in most product groups. However, the margin was at a consistently high level compared to the industry average at 31.4%.
EBITDA from the olefins and polyolefins sector still posted a 37.2% gain on the back of the jump in sales volumes of PP and PE from ZapSibNeftekhim, although it was still partially offset by weaker prices.
The first half’s operating activities’ net cash flow rose by 8.9% year-on-year to RUB60.1 billion (USD821.47 million) as the weakening currency slashed the expenses for income tax.
On a related note, Russia’s PE imports went down by 7% year-on-year in the first half to 328,000 t with High-density polyethylene (HDPE) make up the significant part of the increase. PP imports went up by 21% year-on-year to 105,300 t, the first increase in six months with Propylene homopolymer (homopolymer PP) posted the main increase.
