Tag Archives: Financial Results

URALCHEM HOLDING P.L.C. Reports Unaudited IFRS Financial Results for the First Half of 2012

Moscow, Russia – August 03, 2012 — (For Immediate Release)

– Revenue increased to US $1,261 million, compared to US $1,035 million in H1 2011
– Operating profit increased to US $410 million, compared with US $288 million in H1 2011
– Adjusted EBITDA grew to US $462 million, compared to US $337 million in H1 2011
– Net profit amounted to US $444 million, compared with US $266 million in H1 2011

URALCHEM HOLDING P.L.C. (hereinafter URALCHEM Holding or the Company), a Cypriot holding company of the URALCHEM Group (hereinafter the Group), one of the largest producers of nitrogen and phosphate fertilisers in Russia, announced its unaudited IFRS financial results for the six months ended 30 June 2012.

Dmitry Konyaev, CEO of URALCHEM, OJSC (part of the Group), commented on the results for the first half of 2012, “We achieved good financial results in the first half of this year compared to the same period in 2011. EBITDA increased by more than one-third, sales grew by 18% and reached 3 million tons. The good performance was driven by situation on the urea and ammonium nitrate markets, which was favourable for us, as well as acquisition of Minudobrenia OJSC and our own efforts aimed at improving the efficiency of enterprises, the modernization of production and our responsiveness to changing market needs.”

Financial Results

Revenue for the first half of 2012 grew to US $1,261 million, compared to US $1,035 million in the first half of 2011. Operating profit amounted to US $410 million, or 33% of the revenue, compared with the operating profit of US $288 million, or 28% of the revenue in the first half of 2011.

Net profit for the first half of 2012 amounted to US $444 million, compared to US $266 million in the first half of 2011.

During the first half of 2012, adjusted EBITDA reached US $462 million, compared to US $337 during the same period last year, a rise of 37%. Adjusted EBITDA margin for the first half of 2012 comprised 37% of revenue compared with 33% of revenue for the first half of 2011.

Markets

During the second quarter of 2012 prices of mineral fertilisers and semi-products showed significantly different dynamics. Ammonia prices began to recover due to high demand and limited supply. During the second quarter the price grew by $150/t and by the end of June it reached $600/t FOB at the Yuzhny port.

Prices for urea increased until mid-May and surpassed the peak figures of 2011. Since mid-May there was a significant decline in prices due to low activity of buyers. In late June – early July, the urea market began to show signs of recovery.

Prices for ammonium nitrate repeated the dynamics of the urea market and grew rapidly until mid-May. However, the second half of the quarter was characterized by falling prices for the product, which was also due to low purchasing activity.

The global market of phosphate fertilisers was in the process of recovery during the second quarter of 2012. Due to strong demand in Latin America, spot prices recovered, despite the launch of Chinese products on the market. Market participants are forecasting a stable outlook for the third quarter of the year.

Sales

In the first six months of 2012 the Group’s product sales grew by 18% compared to the same period in 2011 and totalled 3 million tons. Due to the acquisition of OJSC Minudobrenia, Perm, sales of urea and ammonia increased significantly, by 117% and 61% respectively.

Financial Situation

Cash generated from operating activities in the first half of 2012 amounted to US $342 million compared with US $194 million in the first half of 2011.

On 30 June 2012, the Company’s net debt amounted to US $991 million. Interest expenses in the first half of 2012 decreased by US $23 million or 36% compared to the same period last year.

For more information, please visit the Company web site http://www.uralchem.com or use the following contact information:

PR department
URALCHEM, OJSC
Tel: +7 (495) 721 89 89
E-Mail: pr@uralchem.com

URALCHEM HOLDING P.L.C. is a holding company of the URALCHEM Group, which includes four fertilizer manufacturing facilities in Russia. URALCHEM Group is one of the largest producers of nitrogen and phosphate fertilisers in Russia and the CIS with production capacities of over 2.5 million tons of ammonium nitrate, 2.8 million tons of ammonia, 0.8 million tons of MAP and DAP, 0.8 million tons of complex fertilisers and 1.2 million tons of urea per year. URALCHEM Group is the second largest ammonium nitrate producer in the world and number one in Russia, the second largest producer of nitrogen fertilisers in Russia. URALCHEM Group’s key production assets include Azot Branch of URALCHEM, OJSC in Berezniki, Perm Region; OJSC Minudobrenia, Perm; MFP Kirovo-Chepetsk Chemical Works, OJSC, Kirovo-Chepetsk, Kirov region; Voskresensk Mineral Fertilisers, OJSC in Voskresensk, Moscow region.

URALCHEM Achieved Record Financial and Operating Results in 2011

URALCHEM HOLDING P.L.C. Reports IFRS Financial Results for the year ended 31 December 2011.

Moscow, Russia – March 26, 2012 — URALCHEM HOLDING P.L.C. (hereinafter URALCHEM Holding or the Company), a Cypriot holding company of the URALCHEM Group (hereinafter the Group), one of the largest producers of nitrogen and phosphate fertilizers in Russia, announced its audited IFRS financial results for the year ended 31 December 2011.

Dmitry Konyaev, CEO of URALCHEM, OJSC (a Russian holding company of the Group), commented on the 2011 results: “With the favorable market conditions in 2011 the Group achieved record financial and operating results. The volume of marketable production reached 5 million tons, which is in excess of the planned figures. The acquisition of Minudobrenia, Perm will strengthen the Group’s position in the nitrogen segment and will allow it to produce 18% to 20% of domestic urea. Thus, URALCHEM can now become the second largest urea producer in Russia.”

Financial Results

Revenue for the year 2011 grew to US $ 2,080 million, compared to US $ 1,389 million in 2010. Operating profit amounted to US $ 661 million, or 32% of the revenue, compared with the operating profit of US $ 205 million, or 15% of the revenue in 2010. Profit for the year amounted to US $ 445 in 2011, compared to US $ 35 million in 2010.

During the year ended 31 December 2011, adjusted EBITDA reached US $ 752 million, compared to US $ 309 million the year before, a rise of 143%. Adjusted EBITDA margin for the year 2011 comprised 36% of revenue compared with 22% of revenue for the year ended 31 December 2010.

Markets

The urea market dynamics during the period January to September 2011 were significantly different compared to the same period in 2010; the traditional weakening of the market in the 1st quarter was replaced by a sharp rise in prices, which continued throughout the 2nd quarter and amounted to almost $ 200 / t. Then, after a brief downward correction, prices were restored and stabilized in the range of $ 480 – $ 500 / t FOB Yuzhny port. The main reason for the sharp rise in prices was the imbalance between limited supply and the strong demand from the markets in Asia, Latin America and Africa. In the 4th quarter there was a seasonal slump in prices. The situation was determined by high levels of stocks by traders and producers, as well as by the suppliers’ desire to sell their long positions before the Christmas and New Year holidays.

The ammonium nitrate market during the first half of the year basically repeated the dynamics of urea market. However, during the third quarter, because of the effect of lower demand in all major markets, the prices of ammonium nitrate significantly decreased – back to the level of the beginning of the year. During August – September there were price fluctuations within the range of $ 310 – $ 330 / t FOB CIS. In the fourth quarter the decline in prices for ammonium nitrate was mainly due to pressure from the price of urea.

Since the beginning of 2011, the global market of phosphorus fertilizers was characterized by stable shortages that arose due to the decrease in supply from major sources. Prices increased steadily and in September 2011 reached the level that exceeded the same period the year before by 33%. Large volumes of imports of phosphate fertilizers to South Asia and Latin America during the period from the first to the third quarter 2011 allowed large amounts of stocks to accumulate, which led to the decrease in prices in the fourth quarter.

The NPK market in 2011 basically repeated the dynamics of phosphates.

Sales

Against the background of steady high demand for mineral fertilizers in Russia and abroad for most of 2011, the Group’s sales rose by 7% compared to 2010, amounting to a total of 4,920 thousand tons. Sales of urea increased by 18%, sales of phosphate fertilizers grew by 10%. Sales of “other chemicals” increased by 55% due to the increase of sales of ammonium nitrate for industrial use, as well as launch of export sales of new products.

Financial Situation

Due to the increase in revenue, cash generated from operating activities amounted to US $ 525 million for the year ended 31 December 2011, compared to US $ 135 million for the same period the year before.

On 31 December 2011, the Company’s net debt[2] amounted to US $ 930.8 million. The weighted average interest rate in the loan portfolio for the year ended 31 December 2011 amounted to 6.35% compared to 9.07% for the year ended 31 December 2010.

-Ends-

For more information, please visit the Company web site http://www.uralchem.com or use the following contact information:

PR department
URALCHEM, OJSC
Tel +7 (495) 721 89 89
pr@uralchem.com

URALCHEM HOLDING P.L.C. is a holding company of the URALCHEM Group, which includes four fertilizer manufacturing facilities in Russia. URALCHEM Group is one of the largest producers of nitrogen and phosphate fertilizers in Russia and the CIS with production capacities of over 2.5 million tons of ammonium nitrate, 2.8 million tons of ammonia, 0.8 million tons of MAP and DAP, 0.8 million tons of complex fertilizers and 1.2 million tons of urea. URALCHEM Group is the second largest ammonium nitrate producer in the world and number one in Russia, the second largest producer of nitrogen fertilizers in Russia. URALCHEM Group’s key production assets include Azot Branch of URALCHEM, OJSC in Berezniki, Perm Region; OJSC Minudobrenia, Perm; MFP Kirovo-Chepetsk Chemical Works, OJSC Branch in Kirovo-Chepetsk, Kirov region; Voskresensk Mineral Fertilizers, OJSC in Voskresensk, Moscow region.