SIBUR Nearly Doubles Its 2024 Investment Programme to 440 Billion Rubles

MOSCOW, December 27, 2024 — SIBUR, one of Russia's leading petrochemical producers, closed 2024 with investments of 440 billion rubles, above the planned level and almost double the previous year, the company's chief executive Mikhail Karisalov said in an interview with the Rossiya 24 TV channel, as reported by Interfax. The result turns the company's annual capital programme into one of the largest industrial investment efforts in the Russian processing economy this year.

Investment budget almost doubled against the initial plan

"At the start of the year, we saw the budget as being 1.7 to 1.8 times bigger in 2024 [compared] to 2023. In fact, the investment budget in our company in 2024 almost doubled year-on-year to 440 billion rubles," Karisalov said. The statement confirms that execution outran even an ambitious opening plan: the company entered the year expecting a 1.7-1.8 times increase over 2023 and finished with a near doubling of the investment budget.

For a capital-intensive industry such as petrochemicals, the gap between the planned and the actual programme signals that construction and equipment deliveries under already launched projects moved faster than scheduled, and that the company kept funding its expansion despite a tight monetary environment.

Key parameters of the 2024 investment year

• Investments in 2024: 440 billion rubles, above the planned values.
• Year-on-year dynamics: the investment budget almost doubled versus 2023.
• Initial plan: a 1.7 to 1.8 times increase over the 2023 budget.
• Industry backdrop: the Russian polymer industry grew at an average annual rate of 6% over the past five years, outpacing the country's GDP growth.
• Market mix in 2024: 75%-76% of revenue came from the Russian market.
• Export geography: the Asia-Pacific region, the Middle East and North Africa.
• Capacity outlook: implementation of already launched projects will double production capacity compared to 2021.
• Global ambition: a position in the middle of the top ten global producers of synthetic materials, with Russia at sixth or seventh place in world production of these materials.

High key rate: manageable now, a risk for downstream demand

Karisalov said the high key rate does not currently impose significant restrictions on SIBUR, but it may affect the growth rates of consumer industries in the future. "Undoubtedly, we see potential effects from the actions of the Central Bank. On one hand, the logic behind these decisions by our colleagues at the Central Bank is understandable. And honestly speaking, there might be some delayed negative effect in terms of restraining consumer sectors such as construction and utilities. Consequently, this could also impact us," he said.

Services and cooperation with processors support development

At the same time, the chief executive stressed that the current cost of money does not impose significant restrictions on the company: "We operate in close cooperation with our processors. The services we provide - logistics, financial, trade, and R&D - allow for continued development even in today's environment of high money costs. Overall, the industry is growing both along the chain of our large-scale production and that of our processors. The outlook is positive," Karisalov said.

Export geography without visible restrictions

In 2024, 75%-76% of SIBUR's revenue came from the Russian market, while export markets included the Asia-Pacific region, the Middle East and North Africa. Asked about constraints on the external direction, Karisalov was brief: "Frankly speaking, we do not see any restrictions here." The combination of a dominant domestic base and several external directions gives the investment programme a diversified demand foundation.

Global positioning and the capacity doubling ahead

SIBUR aims to rank in the middle of the top ten global producers of synthetic materials and to position Russia at sixth or seventh place in global production of these materials. According to Karisalov, the implementation of already launched projects will double the company's production capacity compared to 2021, which is the industrial core of the enlarged 2024 investment budget.

1. Start of 2024 — the investment budget is planned at 1.7 to 1.8 times the 2023 level.
2. During 2024 — execution exceeds the plan as projects under construction advance.
3. December 27, 2024 — the CEO confirms 440 billion rubles of investments and a positive industry outlook.
4. Next stages — already launched projects are to double production capacity versus 2021 and move the company toward the middle of the global top ten.

Public company status on the shareholders' agenda

When asked about the upcoming IPO, Karisalov said that "shareholders have consistently emphasized the importance and appropriateness of SIBUR being a public company." He did not disclose the expected timeline or the share of stocks that will be offered on the market, leaving the listing question open while the investment cycle remains the company's first priority.

Company and contacts

SIBUR is a Russian petrochemical company operating large-scale production of synthetic materials together with a network of processors, and providing logistics, financial, trade and R&D services along the chain. The 2024 investment figures and the industry outlook above were stated by CEO Mikhail Karisalov in an interview with the Rossiya 24 TV channel, as reported by Interfax on December 27, 2024.

Contacts: statement of SIBUR CEO Mikhail Karisalov in his Rossiya 24 TV interview, cited in the Interfax news report (MOSCOW, Dec 27, Interfax).

Website: https://www.sibur.ru/