OAO Sibur Holding said profit fell 29 percent last year amid record investment in modernization.
Net income dropped to 16 billion rubles ($479 million) last year from 22.6 billion rubles a year earlier, the Moscow-based petrochemicals producer said in an e-mailed statement today. Revenue rose 22 percent to 173.5 billion rubles.
“Factors that caused the decline in net income included an increase the overall tax burden, higher debt servicing costs and also losses on operations caused by significant changes in exchange rates,” Sibur said. OAO Gazprombank controls Sibur, according to the Web site of OAO Gazprom.
Sibur invested 33.6 billion rubles in projects and production expansion last year, “the most in the company’s history,” according to the statement.
It doesn’t plan to pay fourth-quarter dividends because of the worsening market situation. Sibur paid 8.7 billion rubles in dividends in the first nine months of 2008, the company said.
“In 2009, we forecast a decline of all financial results while retaining profitability,” Sibur President Dmitry Konov said in the statement.