The new policy applies to reporting periods starting from 1 July 2020.
Dmitry Konov, Chairman of the Management Board at SIBUR Holding said:
- In recent years, SIBUR has been heavily investing in building up the company’s petrochemical business
- With new capacity now on stream, we have boosted the output of high value-added petrochemical products, managing to generate cash flow and deleverage even in the turbulent global market environment
- This in turn enabled us to raise dividend payouts while sticking to the schedule of our long-term investment programme featuring Amur GCC as its flagship project
The policy matches the industry average global benchmarks of major petrochemical businesses, with the new ratio reflecting the company’s expected deleveraging on the heels of ZapSibNeftekhim’s successful ramp-up and Amur GCC’s kick-off by our joint venture with Sinopec.
The dividend policy perfectly fits SIBUR’s plans to make and finance ongoing and future investments.
The Amur plant, which is set to be the world’s largest basic polymer production factory when completed in 2024, is being built by a joint venture 60 % controlled by SIBUR and 40 % by Chinese oil and gas group Sinopec.
SIBUR signed a deal in 2020 to sell up to 1 million tonnes of polyethylene a year to Sinopec from the $9 billion plant ZapSibNefteKhim, which uses LPG as a feedstock.
Over the past 10 years, SIBUR has implemented a number of large-scale investment projects worth more than RUB 1 trillion ($14.1 billion)