Sibur

From Wikipedia, the free encyclopedia
Sibur
TypeJoint Stock Company
IndustryPetrochemical
Founded1995
Headquarters
Moscow
,
Russia
Key people
 (Chairman of the Management Board)
Revenue$9.1 billion [1] (2018)
$2.6 billion[1] (2018)
$2.06 billion[2] (2017)
Total assets$18.6 billion[3] (2017)
Total equity$7.84 billion[4] (2017)
Number of employees
26,000[5] (2018)
Websitesibur.ru

SIBUR (PJSC SIBUR Holding) is a Russian petrochemicals company founded in 1995 and headquartered in Moscow.[6] SIBUR operates production sites located all over Russia, has over 1,400 major customers engaged in industries including energy, automotive, construction, fast-moving consumer goods (FMCG), and chemical, in approximately 70 countries worldwide, and employs around 26,000 personnel as of 2019. In 2018, its revenue was US$9.1 bln and EBITDA USD 3.2 bln.[1]

History[]

Background[]

AK Sibur, the group's predecessor, was established by government decree in March 1995.[7] The integration was underpinned by the production cooperation of petrochemical enterprises from the former Soviet Union (FSU), while Gazprom became the driving force of petrochemical asset consolidation around SIBUR. Although petrochemicals were not its core business, the gas company embarked on the mission set by the government to create a powerful national player in the deep hydrocarbon conversion market.

In 1995, the new company absorbed gas processing plants and infrastructure assets of Sibneftegazpererabotka; Permsky Gas Processing Plant producing petrochemical products and NIPIgaspererabotka, a design institute.

In 1998, in addition to Gazprom, entrepreneur Yakov Goldovsky became a co-owner and head of SIBUR. Towards the end of 1998, AK Sibur started its transformation into a vertically integrated petrochemical holding with a full production chain from the processing of raw materials through to the manufacture of finished goods.  AK Sibur subsequently built up assets by buying stakes in petrochemical companies all over Russia, including some 60 companies. As a result, the company accumulated huge debts in excess of USD 1 bn with no finance to repay them.

By 2001, Gazprom had acquired a 51% stake in AK Sibur, thus gaining control of the company.[8][9] In 2003, Alexander Dyukov was appointed as the chief executive officer (CEO) of AK Sibur, and a new management team was formed. Under new management, the company improved its operational and financial results and reached an agreement with its creditors.

Reorganization[]

In 2005, in accordance with a debt restructuring plan, AK Sibur established SIBUR Holding (whose legal successor is today's SIBUR), which consolidated all the assets of AK Sibur. A 25% interest in SIBUR was sold to Gazprom, and the remaining 75% was sold to Gazprombank[10], while the proceeds were used to repay the debt owed to Gazprom. In December 2005, AK Sibur Holding was renamed SIBUR Holding[11].

In 2007, Gazprom, as part of its strategy to exit from non-core businesses, disposed of its interest in the company by selling its 25% stake to the Gazfond private pension fund. In 2008, Gazprombank attempted to sell its 75% stake in the group as a part of a management buyout. However, the sale was not completed due to the unavailability of financing. In a series of transactions completed between November 2010 and November 2011, Leonid Mikhelson, a Russian entrepreneur and a co-owner of NOVATEK, acquired a controlling stake in the group. That same year energy trader Gennady Timchenko, ex-co-owner of Gunvor trading house, acquired a 37.5% stake in SIBUR[12]. Between 2012 and 2017, there were several changes in shares. As a result, Mikhelson's equity interest totalled 48.8% of the Group's share capital, Timchenko’s stake stands at 17% and the total stake of current and former managers amounted to 14.5%[13].

Since 2011, SIBUR completed a number of selective divestments, selling its tyre and mineral fertiliser businesses. Instead, the company focused on investing in polymers[14]. At the end of December 2011, SIBUR exited SIBUR-Russian Tyres, having sold a 75% stake to the company's management and the remaining stake to the partners of Vadim Gurinov, the CEO of SIBUR-Russian Tyres[15]. At the end of December 2011, SIBUR sold its mineral fertiliser assets to Uralchem (Mineral Fertilisers, Perm) and Siberian Business Union (Kemerovo Azot and Angarsk Azotno-Tukovy Zavod)[16].

Expansion[]

After the decision has been made to focus on polymer business the company started investing into the expansion of the midstream infrastructure, which, once in place, would provide the necessary feedstock for SIBUR’s polymer facilities. Overall, between 2012 and 2019, the Company completed 14 large-scale investment projects, with total capital expenditures amounting to 210 billion roubles[17]. The expansion and modernisation of its assets allowed the Company to capitalise on growth opportunities in both gas processing and petrochemical markets in Russia. The new strategy[18] was supported by the rebuilding of the company’s management in 2016, replacement of a CFO and the devolving of power to regional operations.

By 2020, SIBUR is planning to launch ZapSibNeftekhim on the basis of the Tobolsk Production Site which is to become Russia's largest petrochemical complex, permitting SIBUR to double polymer production.[19][20]

Corporate affairs[]

Ownership[]

By the autumn of 2011, 100% of SIBUR were owned by the company SIBUR Limited, which since 2013 is 82.5% owned by Leonid Mikhelson and Gennady Timchenko. The owners of the remaining 17.5% include SIBUR's former and current top management. In 2014 Timchenko's share was purchased by Kirill Shamalov, deputy chairman of SIBUR, increasing his share to 21.3%.[21]

As of 28 April 2017, ownership of SIBUR was divided as follows: Leonid Mikhelson – 48.5%, Gennady Timchenko – 17%, current and former managers of SIBUR Holding 14.5%, Sinopec 10%, Silk Road Fund 10%.[22] In December 2015, Sinopec completed a 10% minority strategic investment in SIBUR. In January 2017, Silk Road Fund closed the deal on its acquisition of 10% equity stake in SIBUR.[23]

Acquisitions[]

In 2009, SIBUR acquired a 50% stake in BIAXPLEN, a Russian producer of BOPP films. In March 2012, SIBUR gained control of the BIAXPLEN group of companies by increasing its stake from 50% to 100%. At the time of the acquisition, production facilities belonging to the BIAXPLEN group comprised three plants located in the Nizhny Novgorod, Kursk and Moscow regions with a total annual capacity of 78,000 metric tonnes of commodity films.[24]

In 2011, SIBUR acquired JSC Acrylate, the only CIS-based producer of acrylic acid and its esters, from ATEK Group.[25]

In July 2019, SIBUR and Gazprom Neft consolidated 100% of the authorised capital in Poliom, a polypropylene plant in Omsk. Sibgazpolimer, a joint venture between the two companies, has signed an agreement to acquire a 50% stake in Poliom from the Titan Group.[26][27]

In November 2019, Tatneft completed the purchase of SIBUR's petrochemical facilities in Tolyatti (SIBUR Togliatti and JSC Togliattisintez).[28]

In April 2021, Sibur bought a controlling stake in oil and gas refiner company TAIF with a view to consolidate the assets.[29] The deal sets to be closed by the end of September 2021,[30] while the merge of Sibur and TAIF is inspecting by European Commission.[31]

Joint ventures[]

  • In June 2007, SIBUR established OOO RusVinyl, a 50/50 joint venture with SolVin Holding Nederland B.V.. This joint venture was established to construct a PVC plant with a capacity of 330 ktpa for PVC and 225 ktpa for caustic soda.
  • In February 2012, SIBUR entered into a joint venture arrangement with Reliance Industries Limited, pursuant to which a JV Reliance Sibur Elastomers Private Limited was set up, in which SIBUR owns a 25.1% stake. This joint venture was established for the development of butyl rubber production facility in India with capacity of 120 ktpa. It would start production by 2015.[32]
  • In October 2012, SIBUR signed an agreement with Solvay S.A.-(after initial negotiations with Rhodia (company) which was acquired by Solvay) to establish RusPav, a 50/50% joint venture. It was established to develop a surfactant and oilfield process chemicals production site in , the Nizhny Novgorod region.
  • In August 2013, SIBUR and China Petroleum and Chemical Corporation (Sinopec Corp.) entered into a joint venture developed on the site of the Krasnoyarsk Synthetic Rubber Plant (KZSK), where Sinopec purchased 25% + 1 share of KZSK.

Financials and capital markets[]

Financials[]

Type 2015 2016 2017 2018 2019 2020
Revenue, million roubles (according to International Financial Reporting Standards (IFRS)) ▲379,852[33] ▲411,812[33] ▲454,619[34] ▲568,647[34] ▼531 306[35] ▼523,010[35]
EBITDA, million roubles ▲135,635[33] ▲139,629[33] ▲160,851[34] ▲201,007[34] ▼170,020[35] ▲179,189[35]
EBITDA margin, % ▲35.7%[33] ▼33.9%[33] ▲35.4%[36] ▼35.3%[36] ▼32.0%[37] ▲34.3%[37]
Assets, million roubles (according to IFRS) ▲846,805[38] ▲886,225[38] ▲1,083,826[34] ▲1,258,646[34] ▲1,462,018[35] ▲1,556,922[35]
Dividends, million roubles (according to company information)[39] ▼7,058 ▲9,367 ▲14,704 ▲22,786 ▼17,558 ▲28,690
Net debt, million roubles (as of 31 December) (according to IFRS) ▲285,066[38] ▼281,178[38] ▼263,888[34] ▲317,628[34] ▲362,296[35] ▲403,247[35]
Equity, million roubles (as of 31 December) (according to IFRS) ▲258,707[40] ▲356,738[40] ▲457,158[34] ▲540,464[34] ▲639,583[35] ▼631,649[35]

Bond issues[]

In 2013, SIBUR first entered the global debt capital market, placing its debut eurobond, due in 2018, raising $1 billion in gross proceeds.[41] In October 2017, the company successfully completed an offering of $500 million in eurobonds due in 2023.[42] In October 2018, the Group bought back approximately USD 192 million of its notes due 2018 in a tender offer.[43]

On 23 September 2019, the group  floated $500 million in five-year eurobonds on the Irish Stock Exchange. The bonds are due in 2024 with an annual interest rate of 3.45%. Total demand exceeded $1.3 billion. The offering saw the company's bonds purchased by global investors, more than half of whom were not Russian.[44][45] On 1 July 2020, the company had raised USD 500 m following the offering of 5-year Eurobonds on the Irish Stock Exchange. The coupon rate is 2.95%, which is a record low for Russian corporate issuers.[46]

Besides eurobonds, SIBUR organised a RUB 15 bn BO-01 and BO-02 series exchange-traded bond placement. The semi-annual coupon rate of the BO-01 and BO-02 bonds was fixed at 5.50%, making it the lowest-ever rate for a market placement by a Russian corporate issuer.[47] On 7 July 2021, SIBUR organized a RUB 10 bn BO-03 series exchange-traded bond placement. The books closed at the lower end of the final guidance range, with the coupon set at 7.65% per annum and the issue enjoying best-in-class distribution at this coupon rate. The issue achieved the narrowest spread to OFZs (ruble-denominated Russian Treasury bonds) on the local bond market in the company’s history.[48]

Awards and prizes[]

In 2019, SIBUR ranked 39th in the ICIS Top 100 Chemical Companies Rating by revenue.[49]

SIBUR is one of the best employers in Russia – the hh.ru rating of Russian employers ranked the company third among the country's 100 best employers in 2019.[50]

Between 2012 and 2017, SIBUR demonstrated the highest increase (+54%) in labour productivity among Russian companies according to ACRA Rating Agency.[51]

Randstad's rating recognises SIBUR as the most attractive employer in the chemical industry.[52][53][54]

SIBUR received an international Customer eXperience World Award in the "Best customer experience in b2b" category among industrial companies in 2020 and 2021.[55][56]

References[]

  1. ^ Jump up to: a b c "2018 Annual Results" (PDF). Sibur.com. Retrieved 7 March 2019.
  2. ^ https://www.sibur.ru/press-center/news/SIBURsoobshchilofinansovykhioperatsionnykhrezultatakhdeyatelnostipoMSFOza2017god/.
  3. ^ http://investors.sibur.com/~/media/Files/S/Sibur-IR/Financial-results/sibur_ifrs_12m2017_rus.pdf.
  4. ^ http://investors.sibur.com/~/media/Files/S/Sibur-IR/Financial-results/SIBUR_IFRS%2012m%202017.pdf.
  5. ^ "2018 Results Summary". Sibur.com. Retrieved 7 March 2019.
  6. ^ Kramer, Andrew E. (2016-01-22). "Russian Fund Under Scrutiny for Loan to Company Linked to Kremlin". The New York Times. ISSN 0362-4331. Retrieved 2021-06-07.
  7. ^ "History". Sibur. Retrieved 31 August 2018.
  8. ^ Sinclair, Neil. "Russia's Sibur contributes Rouble 2.2bn to Gazprom H1 pfts". ICIS. Retrieved 2018-08-31.
  9. ^ ICIS Chemical Business. Reed Business Information. 2009.
  10. ^ Blagov, Sergei. "Gazprom gives nod to $5bn Sibur buyout". ICIS. Retrieved 2018-08-31.
  11. ^ Blagov, Sergei. "Russia's AKS renamed Sibur Holding". ICIS. Retrieved 2018-08-31.
  12. ^ "Energy trader Timchenko buys stake in Russia's Sibur". Reuters. 2011-10-28. Retrieved 2021-08-10.
  13. ^ "Changes in the SIBUR Holding's shareholding structure" (PDF). sibur.com. 2017-04-28. Retrieved 2021-08-16.
  14. ^ "History". Sibur. Retrieved 31 August 2018.
  15. ^ Blagov, Sergei (2012-01-10). "Russia's Sibur divests tyre business". ICIS Explore. Retrieved 2021-08-08.
  16. ^ "Sibur to Sell Fertilizer Assets to Siberian Business Union". www.bloomberg.com. Retrieved 2021-08-08.
  17. ^ "SIBUR. Company presentation" (PDF). 2020.
  18. ^ "Sibur's Dmitry Konov: betting on expansion". www.ft.com. Retrieved 2021-08-10.
  19. ^ "History". Sibur. Retrieved 31 August 2018.
  20. ^ Kobzeva, Oksana (2018-06-08). "Russia's Sibur says new gas chemical complex will cost up to $8 bln". CNBC. Retrieved 2018-08-31.
  21. ^ Editorial, Reuters. "Timchenko sells 17 pct stake in petrochemical company Sibur". U.K. Retrieved 2018-08-31.
  22. ^ "Changes in the SIBUR Holding's shareholding structure". Retrieved 2018-08-31.
  23. ^ "10% stake in SIBUR to be sold to China's Silk Road Fund". Retrieved 2018-08-31.
  24. ^ "Sibur completes sale of rubber assets to Tatneft". Rubber & Plastics News. 2019-11-04. Retrieved 2021-08-09.
  25. ^ "Sibur acquires JSC Acrylate in Russia". worldofchemicals.com. 2011-07-29. Retrieved 2021-08-16.
  26. ^ "Sibur and Gazprom Neft to develop polypropylene production in Omsk, Russia". EXTRUSION: The Online Magazine for Plastics Processing Industry Professionals. 2019-07-30. Retrieved 2021-08-16.
  27. ^ ""Газпром нефть" и "Сибур" купили 100% омского завода полипропилена". РБК (in Russian). 2019-07-19. Retrieved 2021-08-16.
  28. ^ "Sibur and Gazprom Take Control of Poliom | CHEManager". www.chemanager-online.com. Retrieved 2021-08-09.
  29. ^ "Russia`s Sibur buys petrochemicals rival". Financial Times. 2021-04-23.
  30. ^ "Еврокомиссия изучит слияние Сибура и ТАИФа" (in Russian). Интерфакс. 2021-09-09.
  31. ^ "Prior notification of a concentration". EUR-Lex. 2021-09-09.
  32. ^ "India's butyl rubber import my end once Russian JV starts in 2015". IANS. news.biharprabha.com. Retrieved 24 April 2014.
  33. ^ Jump up to: a b c d e f "SIBUR REPORTS FY 2016 IFRS RESULTS" (PDF). PAO SIBUR Holding. 2016-03-14. Retrieved 2021-08-19.
  34. ^ Jump up to: a b c d e f g h i j "International Financial Reporting Standards Consolidated Financial Statements and Independent Auditor's Report" (PDF). PJSC SIBUR Holding. 2018-12-31. Retrieved 2021-08-19.
  35. ^ Jump up to: a b c d e f g h i j "International Financial Reporting Standards Consolidated Financial Statements and Independent Auditor's Report" (PDF). PJSC SIBUR Holding. 2020-12-31. Retrieved 2021-08-19.
  36. ^ Jump up to: a b "SIBUR REPORTS FY 2018 IFRS RESULTS" (PDF). PAO SIBUR Holding. 2019-02-21.
  37. ^ Jump up to: a b "SIBUR reports Q4 and FY 2020 IFRS results" (PDF). PJSC SIBUR Holding. 2021-02-11. Retrieved 2021-08-18.
  38. ^ Jump up to: a b c d "SIBUR REPORTS FY 2016 IFRS RESULT" (PDF). PAO SIBUR Holding. 2017-03-14. Retrieved 2021-08-18.
  39. ^ "Dividends". investors.sibur.com. Retrieved 2021-08-19.
  40. ^ Jump up to: a b "International Financial Reporting Standards Consolidated Financial Statements and Independent Auditor's Report" (PDF). 2016-12-31. Retrieved 2021-08-19.
  41. ^ Volkova, Margaret (2013-06-27). "SIBUR unveils Q1 2013 financial results". www.mrcplast.com. Retrieved 2021-08-19.
  42. ^ "Sibur to buy back part of $500 mln Eurobonds for the sum of $192 mln". TASS. 2018-10-18. Retrieved 2021-08-19.
  43. ^ Larionova, Anna (2018-10-19). "SIBUR announces results of Eurobond buyback offer". www.mrcplast.com. Retrieved 2021-08-19.
  44. ^ Mackenzie, Rhod (2019-09-17). "SIBUR has placed five-year Eurobonds worth $ 500 million more than 2.5-times over subscribed". www.rusmininfo.com. Retrieved 2021-08-19.
  45. ^ "SIBUR'S FIVE-YEAR EUROBOND FLOAT WORTH $500 MILLION OVERSUBSCRIBED BY MORE THAN 2.5X". 2019-09-17.
  46. ^ "Russia's Sibur says it raises $500 million in five-year eurobonds". Reuters. 2020-07-01. Retrieved 2021-08-19.
  47. ^ "Russia's leading petrochemical company Sibur raises $208mn with bonds issue at record low yields". www.intellinews.com. 2020-05-22. Retrieved 2021-08-19.
  48. ^ "SIBUR successfully closed the order book for exchange-traded bonds of the BO-03 series in the amount of RUB 10 billion". Capital Forex Investment. 2021-07-10. Retrieved 2021-08-18.
  49. ^ "The ICIS Top 100 Chemical Companies" (PDF). ICIS Chemical Business: 31. 4–10 September 2020.CS1 maint: date format (link)
  50. ^ "HEADHUNTER RELEASES RATING OF RUSSIA'S BEST EMPLOYERS". mlprussia.com. 2019-03-25. Retrieved 2021-08-08.
  51. ^ "Эксперты оценили производительность крупнейших несырьевых компаний России". РБК (in Russian). 2019-01-25. Retrieved 2021-08-08.
  52. ^ "SIBUR for the fifth time is recognized by the most attractive employer in category award Randstad AwardSostoyalas "Chemical Industry" a ceremony of delivery of annual awards of Randstad Award". news.myseldon.com. 2018-04-09. Retrieved 2021-08-08.
  53. ^ "АНКОР и Randstad наградили самых привлекательных работодателей России". РБК+ (in Russian). 2018-04-06. Retrieved 2021-08-16.
  54. ^ "СИБУР снова самый привлекательный". e-plastic.ru (in Russian). 2018-04-09. Retrieved 2021-08-16.
  55. ^ "Опыт СИБУРа по взаимодействию с клиентами отмечен премией Customer eXperience" (in Russian). 2020-05-27. Retrieved 2021-08-16.
  56. ^ "СИБУР второй год подряд стал лауреатом премии Customer eXperience World Awards". nangs.org (in Russian). 2021-06-03. Retrieved 2021-08-16.

External links[]

Retrieved from ""