SIPH (INTERNATIONALE DE PLANTATIONS D'HÉVÉAS) 
By Courbevoie, 28th February 2014
SIPHFinancial year 2013:
Rubber turnover: 326.2 M€ Total turnover: 365.0 M€In M€ | 2012 2013 (*) Variation |
1st quarter Total turnover of which rubber | 88.3 96.7 +9.6% 84.7 84.7 +0.1% |
2nd quarter Total turnover of which rubber | 94.9 93.2 -1.8% 90.0 83.0 -7.8% |
3rd quarter Total turnover of which rubber | 115.8 77.3 -33.2% 89.5 71.0 -20.7% |
4th quarter Total turnover of which rubber | 120.4 97.8 -18.8% 94.3 87.4 -7.3% |
Total Total turnover of which rubber | 419.4 365.0 -13.0% 358.5 326.2 -9.0% |
(*) Unaudited data
Within the context of a cyclical downturn, SIPH's turnover from rubber was
€ 326.2 million, down 9%, and due entirely to the fall in selling prices. The increase in production sold (+15.3%) partially offset the lower prices, the unit selling price being down 21% this year.
With related activities, the total turnover was € 365.0 million.
Market background for the financial year: reversal of the upward cycle (-33.1% on the average trading price in euros)
The price of rubber (Sicom 20) which stood at 3 $/kg at the beginning of 2013 steadily fell reaching 2.3
$/kg by the end of the year. The change in the euro / dollar rate had a negative amplifying effect (1.33 $/€ at the start of 2013 against 1.37 $/€ at the end of 2013). Thus the average price in euros was 2.3 €/kg at the beginning of 2013 but finished at 1.64 €/kg at the end of 2013, that is -29% over the financial year. Expressed in euros, the average price in 2013 fell by 33.1 % compared to the year before (1.64 €/kg against 2.45 €/kg in 2012).
6,3
6,0
5,7
5,4
5,1
4,8
4,5
4,2
3,9
3,6
3,3
3,0
2,7
2,4
2,1
1,8
1,5
1,2
0,9
0,6
0,3
0,0
€/kg
US $/kg
Prix vente trimestriel SIPh €/kg moyenne mobile 90jours €/kg
Business for the year 2013
Production levels in line with objectives: rubber production up by 6.3% to 160.8 thousand tonnes
Overall rubber production increased by 6.3% to 160.8 thousand tonnes (against 151.4 thousand tonnes in
2012), in line with the target set for this year. This increase was mainly due to outside purchases which totalled 91.5 thousand tonnes (against 83 thousand tonnes in 2012), an increase of 10%. External purchases now account for 57% of annual production. This dynamism amongst smallholders is apparent in Côte d'Ivoire and Ghana.
Own production also increased (+1.4%), the regular renewal of the plantations gradually improving yields, and stood at 69.3 thousand tonnes against 68.4 thousand tonnes in 2012.
Tonnages sold up 15.3%, partially offsetting the fall in sales prices (-21.1%)
In the 4th quarter, SIPH sold 48.4 thousand tonnes of rubber against 41.4 thousand tonnes in 2012, an increase of 17%. Over the year, the annual sales volume rose by 15.3% with respect to the previous year, to 163.4 thousand tonnes, and included the destocking of 6 thousand tonnes of raw material.
This new record of tonnages of rubber sold only partially offsets the sudden drop in sales prices (average selling price lower by 21.1% compared to that of 2012).
Turnover from rubber totalled € 326.2 million, down 9.0%.
Change expected in the 2013 results and the financial structure
(Unaudited estimates)
The Group's operating results will be lower than those of last year, with gross margin expected to be impacted by about 5 percentage points due to the lower prices and the increased contribution of external purchases.
In addition, the cyclical downswing of rubber will have a mechanical impact on asset valuations: on the fair value of the biological assets (€ 40 million approximately) with no effect on cash flow, and on the value of CRC assets (depreciation of around € 15 million). These non-recurring expenses will penalise the Group's net result which will show a loss of approximately € 30 million in 2013. The amounts shown may change given the sensitivity of fair value assessment models to price forecasts.
In terms of financial structure, the Group's net debt came to € 31.5 million on 31 December 2013, an
amount that reflects the Group's continued investment programme worth almost € 50 million.
Investments have focused on:
Implementing the programme to increase plant capacity and develop industrial processes in
Ghana and Côte d'Ivoire;
Purchasing land in Ghana (2,600 ha.);
Expanding and renewing plantations, with 2,900 hectares planted in 2013, and preparing land for a similar programme in 2014;
Renewing equipment and infrastructure at all sites, including Liberia.
Outlook
S I P H Société Internationale de Plantations d'Hévéas
Since the beginning of the year, the price of rubber has fallen sharply, right now fluctuating between 1.90
$/kg and 1.80 $/kg. The current economic environment continues to weigh on the demand for rubber, especially from China, while production from the new plantings in South East Asia from the year 2005 is coming onto the market.
Unless there is a clear economic recovery, in the current climate the estimated supply of rubber in 2014 looks set to be slightly surplus to demand, by around 0.4 million tonnes within a global production of 11.5 million tonnes (source LMC Rubber T4).
Drawing on its past experience of cyclical lows, the Group intends to leverage a slightly higher level of output, while taking specific measures to reduce costs.
In 2014, SIPH will maintain its strategic investments to gradually increase land surface, and renew and adapt its industrial capacity in order to have at its disposal all the necessary assets in view of a potential market recovery, and will put off certain investments to the future.
Receive free financial information about SIPH by e-mail by registering at:
www.actus-finance.com
Euronext Value Code: SIPH - ISIN Code: FR 0000036857 - Number of shares: 5,060,790
About SIPH
SIPH (Société Internationale de Plantations d'Hévéas) is specialised in the production, manufacturing and marketing of
natural rubber for industrial use. SIPH operates more than forty thousand hectares of mature rubber plantations, and currently has a production capacity of 161,000 tons spread over 4 countries (Ivory Coast, Ghana, Nigeria and Liberia). The treated latex comes either from SIPH's own rubber plantations (43 %) or is bought from independent growers (57 %). SIPH markets its products, which are mainly reserved for the tyre business, on the international market. For more information, visit the website: www.siph.com
Contacts at SIPH
Frédérique Varennes, Secretary General, Tel : +33 (0)1 41 16 28 51
Contacts at ACTUS FINANCE
Anne-Pauline Petureaux, Investor & Analyst Relations, +33 (0)1 53 67 35 74
Jean-Michel Marmillon, Media Relations, +33 (0)1 77 35 04 37
|
distributed by
|
