MOSCOW (MRC) -- After the launch of Zapsibneftekhim at full capacity, SIBUR decided to use the significantly increased free cash flow to reduce debt, according to the Kommersant.
After the launch of Zapsibneftekhim at full capacity, SIBUR decided to use the significantly increased free cash flow to reduce debt, according to the Kommersant newspaper.
According to the newspaper, the company is going to fully repay the loan of the National Wealth Fund (NWF), which was attracted in 2015 for the construction of Zapsibneftekhim. The company borrowed USD1.75 billion (at that time - 118.6 billion rubles) at the rate (inflation in the United States plus 1 percentage point) maturing in 2030.
The Izvestia newspaper notes that the reason for the early repayment of the debt could have been the high efficiency of the complex already in the early days of its operation.
Thus, Zapsibneftekhim had a positive impact on the implementation of the international cooperation and export national project. According to analysts, the contribution of production in Tobolsk to the growth of non-resource exports of Russia exceeded 16%. In addition, according to Sibur itself, products manufactured at Zapsibneftekhim can make a significant contribution to solving the problem of import substitution. For various categories, the volume reaches 85–95% of the total market. For example, in the production of stretch films, pipes and cable insulation, this figure can exceed more than 90%.
According to the Kommersant newspaper, during the period of using the loan, SIBUR paid USD290.5 million (17.8 billion rubles) of coupon income to the state budget. SIBUR has already informed the government of its intention to pay off its debt to the NWF.
As per MRC, On 10 August, the Central Bank registered an additional issue of ordinary shares of PJSC SIBUR Holding, the largest petrochemical holding in Russia and Eastern Europe, reported BusinessOnline. Now the authorized capital of PJSC SIBUR Holding is Rb21,784, 791. There are 2,178,479.1 ordinary shares in circulation with a par value of Rb10 each one. In accordance with the decision on the additional issue, the issuer is placing 384,437,000.489 new ordinary shares by private subscription.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
SIBUR manufactures and sells petrochemical products in the Russian and international markets in two business segments: olefins and polyolefins (polypropylene, polyethylene, BOPP, etc.), as well as plastics, elastomers and intermediate products (synthetic rubbers, expanded polystyrene, PET, etc.).
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