Sibur blames weak rouble for drop in Q3 profits

Moscow – Sibur Holding has published its operational and financial results for the nine months ended 30 Sept, reporting a 28.3-percent increase in year-on-year income.

Sibur said its earning (EBITDA) for the period amounted to RR 73,140 million (€1,075 million), showing a year-on-year growth of 28.3% from RR 56,985 million in the nine months of 2013. This was largely attributable to the completion of large-scale investment projects.

According to the Russian gas processing and petrochemical company, the year-on-year revenue increased by 33.5 percent, despite a considerable 19.2-percent drop it its revenue from sales of synthetic rubber.

"Our synthetic rubber business remained under significant pressure on the back of persistently negative market environment for our synthetic rubber grades, reported Sibur. "[This resulted] in a decrease of revenue by 19.2 percent  year-on-year to RR 20,124 million, from RR 24,908 million in the corresponding period of 2013."

For the group as a whole, Sibur’s adjusted profit decreased by 31.4 percent year-on-year to RR 24,778 million, compared to the first nine months of last year. The group said its performance was "negatively affected by the substantial Russian rouble depreciation that resulted in net foreign exchange loss of RR 20,263 million."