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URALCHEM Expands Its Own Fleet of Ammonia Transportation Tanks

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In August, URALCHEM’s fleet of rolling stock increased by 100 new ammonia tanks.

Moscow, Russia (August 14, 2014) — In August, URALCHEM‘s fleet of rolling stock increased by 100 new ammonia tanks. A financial leasing contract was signed by URALCHEM-TRANS (part of URALCHEM) and Alpha Leasing. The deal amounted to about 500 million roubles.

The leasing company was chosen on a competitive basis, which allowed URALCHEM to negotiate the best terms for the deal. The new tanks are to be manufactured by the Ruzaevsky Chemical Engineering factory (Ruzhimmash, part of the RM Rail group). URALCHEM-TRANS has long been using Ruzhimmash products. Currently, the company’s fleet includes 533 leased tanks by this manufacturer and another 76 rented.

Expansion of its fleet of ammonia tanks is in line with URALCHEM’s strategy to ensure the independence of its logistics chain. In particular, it is driven by the requirement to reduce its current dependence on leased fleets of other ammonia manufacturers. This allows the company to guarantee uninterrupted supply of raw materials and finished products. By following this strategy in 2012 to 2014, URALCHEM increased the proportion of its own ammonia tanks from 40% to 71% of the total number of tanks in its fleet. In total, URALCHEM’s rolling stock of ammonia tanks consists of 1700 ammonia tanks, of which more than 1200 are owned by the company.

Public Relations Department
URALCHEM, OJSC
Tel: +7 (495) 721 89 89
pr@uralchem.com
http://www.uralchem.com

URALCHEM, OJSC is one of the largest producers of nitrogen and phosphate fertilizers in Russia and the CIS with production capacities of over 2.8 million tonnes of ammonia, 2.5 million tonnes of ammonium nitrate, 1.2 million tonnes of urea and 0.8 million tonnes of phosphate and compound fertilizers per year. URALCHEM, OJSC ranks first in Russia for production of ammonia and ammonium nitrate, and second for the production of urea. Key production assets of URALCHEM, OJSC 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 Fertilisers, OJSC in Voskresensk, Moscow region.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of URALCHEM. We wish to caution you that these statements are only predictions. We do not intend to update these statements and our actual results may differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, financial risk management and the impact of general business and global economic conditions.

Business

URALCHEM Celebrates Its 7th Anniversary

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Last Friday marked the seventh anniversary of the foundation of URALCHEM.

Moscow, Russia (July 14, 2014) — Last Friday marked the seventh anniversary of the foundation of URALCHEM.

Ever since it was set up in 2007, URALCHEM has pursued a strategy of consolidating assets whilst improving the efficiency of business processes, increasing productivity and profitability, as well as reducing transaction costs. Today, URALCHEM is a leading manufacturer of nitrogen fertilizers. Ranking first in Russia in the production of ammonia and ammonium nitrate, the company supplies more than 80 kinds of products in more than 60 countries.

Over the past seven years, URALCHEM has boosted total production by more than 3 times. In 2013 the company produced 6.04 million tons of its main products and set a record for the production of gross ammonia at 2.82 million tons. Revenue has grown more than four-fold for the past seven years, reaching $2.27 billion in 2013. In terms of profitability, URALCHEM is one of the industry leaders, not only in Russia, but also globally. The company’s EBITDA grew from $207 million in 2007 to $632 million in 2013, with an EBITDA margin of 28%. The company is actively reinvesting its profits. Over the period of 2007 to 2013, URALCHEM has invested $682 million in its own development.

General Director of URALCHEM OJSC Dmitry Konyaev commented, “Today URALCHEM is one of the leaders of the chemical industry. This is a company that has managed in a short time to walk a path that has taken many players in the industry decades; a company that is confident in the future. We are developing and launching new products, strengthening our positions in key markets and entering new markets. We believe that URALCHEM is set for a long-term and stable development. Its employees, highly qualified managers and effective business model all guarantee this.”

More than 300 employees, representing all businesses of the company participated in the celebrations. The guests enjoyed a spectacular boat trip on the Moscow River and a concert.

Public Relations Department
URALCHEM, OJSC
Tel: +7 (495) 721 89 89
pr@uralchem.com
http://www.uralchem.com

URALCHEM, OJSC is one of the largest producers of nitrogen and phosphate fertilizers in Russia and the CIS with production capacities of over 2.8 million tonnes of ammonia, 2.5 million tonnes of ammonium nitrate, 1.2 million tonnes of urea and 0.8 million tonnes of phosphate and compound fertilizers per year. URALCHEM, OJSC ranks first in Russia for production of ammonia and ammonium nitrate, and second for the production of urea. Key production assets of URALCHEM, OJSC 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 Fertilisers, OJSC in Voskresensk, Moscow region.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of URALCHEM. We wish to caution you that these statements are only predictions. We do not intend to update these statements and our actual results may differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, financial risk management and the impact of general business and global economic conditions.

Business

URALCHEM reports the results of the Annual General Meeting of Shareholders

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United Chemical Company URALCHEM, OJSC reports on the decisions taken by the shareholders at the Annual General Meeting held on 30th June, 2014.

Moscow, Russia (July 2, 2014) — United Chemical Company URALCHEM, OJSC reports on the decisions taken by the shareholders at the Annual General Meeting held on 30th June, 2014.

The company’s shareholders approved URALCHEM’s annual report and annual financial statements for fiscal year 2013. The shareholders decided not to announce and pay dividends for 2013, beyond the 3.475 billion roubles previously announced for the nine months of 2013.

The meeting also re-elected the current Board of Directors of URLACHEM OJSC. The board includes Dmitry Mazepin, Dmitry Tatianin, Dmitry Konyaev, Julia Orlovskaya, Andrey Pakhomenkov, Mikhail Genkin and independent director Petr Krupnov.

The shareholders’ approved the new edition of the articles of association of the company, which brings it into line with changes in legislation and specifies the responsibilities of the CEO and the Board of Directors. The meeting approved a major deal: namely, the signing of an additional agreement to the VTB loan to purchase shares in OJSC Uralkali, which increased the period of availability of undrawn funds to the end of 2014.

Dmitry Konyaev, CEO of URALCHEM, OJSC said that in 2013 the company demonstrated the stability of the business in difficult market conditions. Among the main results of the year were the completion of its own port terminal in Riga and the purchase of 19.99% of shares in OJSC Uralkali. In 2014, the company will focus on improving business efficiency by continuing to invest in the renovation and modernization of its existing facilities.

Public Relations Department
URALCHEM, OJSC
Tel: +7 (495) 721 89 89
pr@uralchem.com
http://www.uralchem.com

URALCHEM, OJSC is one of the largest producers of nitrogen and phosphate fertilizers in Russia and the CIS with production capacities of over 2.8 million tonnes of ammonia, 2.5 million tonnes of ammonium nitrate, 1.2 million tonnes of urea and 0.8 million tonnes of phosphate and compound fertilizers per year. URALCHEM, OJSC ranks first in Russia for production of ammonia and ammonium nitrate, and second for the production of urea. Key production assets of URALCHEM, OJSC 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 Fertilisers, OJSC in Voskresensk, Moscow region.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of URALCHEM. We wish to caution you that these statements are only predictions. We do not intend to update these statements and our actual results may differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, financial risk management and the impact of general business and global economic conditions.

Business

URALCHEM, OJSC Reports IFRS Financial Results for the First Quarter of 2014

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URALCHEM, OJSC, the Russian holding company of the URALCHEM Group, one of the largest producers of nitrogen fertilizers in Russia, announced its IFRS financial results for the first quarter of 2014.

Moscow, Russia (May 30, 2014)

• Revenue decreased to 19.4 bln RUB, compared to 20.8 bln RUB in January-March 2013.
• Operating profit amounted to 5.3 bln RUB, compared with 6.7 bln RUB in January-March 2013.
• Adjusted EBITDA comprised 6.2 bln RUB, compared to 7.6 bln RUB in January-March 2013.
• Adjusted EBITDA margin amounted to 32%, compared to 37% in January-March 2013.

URALCHEM, OJSC (hereinafter URALCHEM or the Company), the Russian holding company of the URALCHEM Group, one of the largest producers of nitrogen fertilizers in Russia, announced its IFRS financial results for the first quarter of 2014.

Revenue for the first quarter of 2014 decreased by 7% to 19.4 bln RUB, compared to 20.8 bln RUB in January – March, 2013. Operating profit amounted to 5.3 bln RUB (23% of revenue) compared with the operating profit of 6.7 bln RUB (32% of revenue) in the first quarter of 2013.

Adjusted EBITDA comprised 6.2 bln RUB, compared to 7.6 bln RUB, a decrease of 18%. The adjusted EBITDA margin for the first quarter of 2014 amounted to 32% of revenue, compared with 37% of revenue for the first quarter of 2013.

The negative net profit is the result of so-called paper losses. The bulk of the company’s debt is denominated in dollars, and following the sharp rise in the foreign exchange rate in the first quarter of 2014, the company has recognized a foreign exchange loss from financing activities to the amount of 13.56 billion roubles in the reporting period. Of this amount, 13 billion roubles is the exchange difference on the loans, on which there have been no real cash flows. Sharp fluctuations in exchange rates have a significant effect on the net income indicator. For example, movement of the dollar exchange rate in the opposite direction in April and May provided for positive exchange rate differences on the same loans to the total of about 6.5 billion roubles.

In addition, the financial result from operations includes foreign exchange loss in the amount of 957 million roubles arising on intercompany liability, while the corresponding gain is reflected directly in the statement of changes in equity. If these exchange differences were netted off, EBITDA could reach 7.15 billion roubles and its margin would be 37%.

Thus, against the background of declining global prices for major fertilizers, in the first quarter of 2014, URALCHEM showed the sustainability of its business model. Whilst its financial performance was lower in absolute terms, the company has maintained high margins (profitability) and continued to generate a stable positive cash flow. In response to market trends, the company has increased production and sales of key products, ammonium nitrate and its derivatives, as well as continued its efforts to improve the efficiency of business processes, to increase productivity and profitability and to reduce operating costs.

Markets

The first quarter is traditionally a period of significant market activity and prices are being supported by strong demand in premium markets, the US and Europe. However, despite the rise in prices in the first half of the quarter, the average values of quotes were lower than in the first quarter of 2013. In the second and third quarters of 2014 the market expects oversupply associated with the start of Chinese exports. The main demand during the period is expected from South Asia and Latin America, ie regions in which the price is traditionally low. The volume of demand is assessed as insufficient to absorb all available supplies from China and the Middle East. As a result of the oversupply, price cuts will inevitably lead to a halt in production in regions with high costs, including Europe and the CIS.

In January, the activity in ammonia markets stayed low. Quotes based on FOB Yuzhnyi Port remained around 410 to 430 dollars/tonne. In February, prices for ammonia in the ports of the CIS began to rise, which continued until the end of the quarter. Gazprom’s announcement about cancellation of discounts on natural gas prices increased interest in purchasing in the Yuzhnyi Port; the lack of available supplies in Trinidad heightened interest of US importers in purchasing in the CIS. The main growth in demand was due to the start of direct application of ammonia and increased requirements for raw materials from producers of phosphate fertilizers. In March, prices reached 474 dollars/tonne. However, in general, for the quarter the prices amounted to 438 dollars/tonne, which is 22.2 % lower than a year before.

The greatest activity for urea during the quarter was shown in US, Europe and Brazil. The US entered the purchasing season with low stocks. In January, prices in the US rose by 21% and the rapid rise in prices in the United States resulted in an increase in prices in the major sources of shipment: in the Port of Yuzhnyi by 15%, in Egypt also by 15%, in the Middle East by 16%. Prices were also supported by a lack of free product in North Africa and the Middle East. However, beginning with the last week of January, the market trend changed. The devaluation of the Turkish lira and the Brazilian real impeded imports from these countries and by the end of the quarter, prices returned to January levels. The average quotes for urea FOB Baltics in March totalled 314 dollars/tonne. The average urea price for the quarter was $330/tonne, which is 14.3 % lower than a year before.

January and February marked steady growth of quotations for ammonium nitrate caused by deficiency of the product available for export, due to the supply to the Russian domestic market. FOB Baltics quotes grew from $300/tonne up to $320/tonne. But from the beginning of March there was change in the trend due to lower domestic demand. In general, during the first quarter of 2014 quotes amounted to $308/tonne, which is 8.6% lower than a year before.

In the segment of phosphate fertilizers (MAP/DAP) average quotations (FOB Black Sea) for the first quarter of 2014 amounted to $469 dollars/tonne, which is 6% lower than a year before. Since mid-March, demand in this segment declined markedly; importers, relying on high inventories, put off new purchases in anticipation of more lucrative offers. In the second quarter, market participants expect lower prices.

Financial Situation

Cash generated from operating activities in the first quarter of 2014 amounted to 5.6 bln RUB, compared to 5.06 bln RUB in the first quarter of 2013.

As at 31 March 2014, the Company’s net debt amounted to 163.11 bln RUB. The debt burden increased after the Company received a loan from VTB Capital to finance the purchase of 19.99% of shares in OJSC “Uralkali”, which as at 31 March 2014 amounted to 146,01 bln RUB

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

Public Relations Department
URALCHEM, OJSC
Tel: +7 (495) 721 89 89
Email: pr@uralchem.com
Web: http://www.uralchem.com

URALCHEM, OJSC is one of the largest producers of nitrogen and phosphate fertilizers in Russia and the CIS with production capacities of over 2.8 million tonnes of ammonia, 2.5 million tonnes of ammonium nitrate, 1.2 million tonnes of urea and 0.8 million tonnes of phosphate and compound fertilizers per year. URALCHEM, OJSC ranks first in Russia for production of ammonia and ammonium nitrate, and second for the production of urea. Key production assets of URALCHEM, OJSC 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 Fertilisers, OJSC in Voskresensk, Moscow region.

Business

URALCHEM Adds 300 Units to its Fleet of Rail Cars

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URALCHEM OJSC is increasing by 300 its own fleet rail cars for the transportation of mineral fertilizers and liquid ammonia.

Moscow, Russia (September 19, 2013) — URALCHEM OJSC is increasing by 300 its own fleet rail cars for the transportation of mineral fertilizers and liquid ammonia. URALCHEM-TRANS (part of the URALCHEM group) will operate the new cars, along with the rest of URALCHEM’s rolling stock. The cars will be acquired through capital lease agreements, with the participation RB Leasing, LLC. The transaction value exceeds 700 million roubles.

Of the 300 cars purchased, 200 mineral wagons and 100 tank cars are manufactured in Russia. All the cars will be transferred to URALCHEM-TRANS in September and October 2013 and will be used to replace an existing fleet that is being retired. Since the end of 2012, URALCHEM-TRANS’ rolling stock has increased by 500 new cars. Today, the total number of cars under the management of URALCHEM-TRANS is around 8.5 thousand units.

The Director of URALCHEM-TRANS, Vsevolod Kovshov commented: “The planned renovation and expansion of the fleet is one of our key areas of work to ensure the safety of the logistics of the company. The new deal allows us to increase the share of our own rolling stock in the fleet in accordance with the strategic objectives of the Group. The new rolling stock will be used to replace leased, obsolete and worn out cars.”

-Ends-

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

URALCHEM, OJSC is one of the largest producers of nitrogen and phosphate fertilisers in Russia and the CIS with production capacities of over 2.5 million tonnes of ammonium nitrate, 2.8 million tonnes of ammonia, 0.8 million tonnes of MAP and DAP, 0.8 million tonnes of complex fertilisers and 1.2 million tonnes of urea. URALCHEM, OJSC is the second largest ammonium nitrate producer in the world and number one in Russia, the second largest producer of nitrogen fertilisers in Russia. Key production assets of URALCHEM, OJSC 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 Fertilisers, OJSC in Voskresensk, Moscow region.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of URALCHEM. We wish to caution you that these statements are only predictions. We do not intend to update these statements and our actual results may differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, financial risk management and the impact of general business and global economic conditions.

Business

URALCHEM HOLDING P.L.C. Reports IFRS Financial Results for the First Six Months of 2013

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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 unaudited IFRS financial results for the first six months of 2013.

Moscow, Russia (August 19, 2013)

– Revenue increased to US $1,292 million, compared to US $1,261 million in H1 2012.
– Operating profit amounted to US $394 million, compared with US $410 million in H1 2012.
– Adjusted EBITDA comprised US $452 million, compared to US $462 million in H1 2012.
– Net profit amounted to US $253 million, compared with US $444 million in H1 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 unaudited IFRS financial results for the first six months of 2013.

Dmitry Konyaev, CEO of URALCHEM, OJSC (the Russian holding company of the Group), commented on the Company’s results in the first half of 2013, “The overall global market situation has been less favourable for fertilizer producers in 2013 compared to last year. This trend is very likely to continue in the second half of this year. Along with the continuing rise in the cost of raw materials, this situation creates conditions for the further decline in the financial performance of the leading manufacturers of mineral fertilizers. Thanks to its strategy, URALCHEM is continuing to hold a leading position in a number of financial and operational indicators. In the first half of 2013, URALCHEM maintained its sales volume at the level of the first half of 2012 and increased revenues by 2%. In addition, as a result of early repayment of loans to the amount of US $300 million we were able to reduce the Company’s debt to a record low of US $787 million, as well as to withdraw from collateral all of the Group’s property. Net debt currently amounts to US $676 million”.

Financial Results

Revenue for the first six months of 2013 grew to US $1,292 million, compared to US $1,261 million last year. Operating profit amounted to US $394 million, or 31% of the revenue, compared with the operating profit of US $410 million, or 32% of the revenue, in the first half of 2012. Net profit amounted to US $253 million, compared to US $444 million in the first six months of 2012.

During the first half of 2013, adjusted EBITDA reached US $452 million, compared to US $462 million in the first half of the year before, a decrease by 2%. The adjusted EBITDA margin for the first six months of 2013 comprised 35% of revenue compared with 37% of revenue for the same period in 2012.

The main difference in the dynamics of the net profit compared to the other results is due to the fact that the results in 2012 included the revaluation of the Company’s share in Minudobrenia, Perm.

Markets

During the first half of the year, the price of ammonia was declining. The main factor determining the price dynamics was the lack of demand in the agricultural and the industrial segments. Lower demand in the agricultural segment was due to the late start of the sowing season in the Northern Hemisphere. Lack of demand in the industrial segment was caused by reduced production of phosphate fertilizers in North Africa and India.

Urea prices showed significant growth in the beginning of the year due to active procurement in Europe and North America, which coincided with a limited supply of product from Egypt, forcing buyers to look for alternative sources. However, from mid-February to the end of June prices have been decreasing, mainly due to lack of demand. In Europe and the US slowdown in demand was attributed to the late start of the sowing season. Latin American importers were putting off purchases, monitoring the changes in the situation. Additional pressure on prices was created by the accumulation of large stocks of products at Chinese ports, in anticipation of the period of low export duties, which began on 1 July.

During January and February there was a steady growth of quotations for ammonium nitrate. In mid-March, due to the pressure from urea prices, the trend changed. By mid-May, prices for ammonium nitrate decreased by $100/t, compared with the maximum prices registered in the middle of the first quarter. At the end of May, prices stabilized with repair works carried out at that time at CIS plants being one of the factors that contributed to this stabilization. By the end of the second quarter, prices in the CIS were supported by the industrial segment.

Until the middle of the first quarter, global decline in prices for phosphate fertilizers continued due to the lack of current demand. The decrease of production by major suppliers together with increased demand in Latin America stabilized prices. At the same time, Latin America remained the single largest source of demand. Indian buyers refrained from transactions. Since the beginning of the second quarter the decline was caused by the reduction of subsidies in India, the delays of purchases in the US domestic market due to the weather conditions, devaluation of currencies of major importing countries, such as Brazil and India, and policy of procurements to the current needs adopted by importers in other regions lead to oversupply in market and decrease in prices.

Production and sales

Volume of production by the Group’s plants increased by 1%, sales of commercial products of the Group remained virtually unchanged.

Financial Situation

Cash generated from operating activities in the first half of 2013 amounted to US $320 million, compared to US $342 million in the same period of 2012.

As at 30 June 2013, the Company’s net debt amounted to US $676 million. The weighted average interest rate of the loan portfolio in the first six months of 2013 equalled 4.7% annually compared to 5.2% annually during the same period in 2012.

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 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 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 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.

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URALCHEM HOLDING P.L.C. Reports IFRS Financial Results for the First Quarter of 2013

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URALCHEM HOLDING P.L.C., a Cypriot holding company of the URALCHEM Group, one of the largest producers of nitrogen and phosphate fertilizers in Russia, announced its unaudited IFRS financial results for the first quarter of 2013.

Moscow, Russia (May 29, 2013)

– Revenue increased to US $683 million, compared to US $673 million in Q1 2012.
– Operating profit increased to US $220 million, compared with US $178 million in Q1 2012.
– Adjusted EBITDA grew to US $250 million, compared to US $207 million in Q1 2012.
– Net profit amounted to US $161 million, compared with US $354 million in Q1 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 unaudited IFRS financial results for the first quarter of 2013.

Dmitry Konyaev, CEO of URALCHEM, OJSC (the Russian holding company of the Group), commented on the results, “In the first quarter of this year, URALCHEM increased its revenues and the adjusted EBITDA grew substantially. This shows how effectively the Company is working. URALCHEM is still focusing on production of high-margin products demanded by the market. The first three months of 2013 showed the sort of results which we had anticipated. This is a positive testament to our strategy of strengthening our position in the nitrogen segment.”

Financial Results

Revenue for the first quarter of 2013 grew to US $683 million, compared to US $673 million in the first quarter of last year. Operating profit amounted to US $220 million, or 32% of the revenue, compared with the operating profit of US $178 million, or 26% of the revenue, in the first quarter of 2012. Net profit for the first quarter of 2013 amounted to US $161 million, compared to US $354 million in the first quarter of 2012.

During the first quarter of 2013, adjusted EBITDA reached US $250 million, compared to US $207 million the year before, a rise of 19%. The adjusted EBITDA margin for the first quarter of 2013 comprised 37% of revenue compared with 31% of revenue for the first quarter of 2012.

Revenue, EBITDA margin and adjusted EBITDA increased during the first quarter of 2013 as compared to the same period in 2012. The difference in the net profit is due to revaluation of the Company’s share in Minudobrenia, Perm carried out in 2012 and foreign exchange differences that showed opposite dynamics in 2013.

Markets

Ammonia
During the quarter, the price of ammonia was slowly declining. The main factor determining the price dynamics was the lack of demand in both the agricultural and the industrial segments. Reduced production of phosphate fertilizers in North Africa and India resulted in lower demand for ammonia in these regions. US demand for ammonia for direct application was satisfied by supplies from Trinidad and from domestic market. The growth of the industrial segment in East Asia appeared to be insufficient to cover spot volumes and the demand was met by contract supplies. Ammonia production in Egypt decreased due to the limitations of gas supplies for nitrogen production, but at the same time, capacities utilization in Trinidad increased to 90%.

Urea
At the beginning of the quarter prices for urea increased rapidly. Quotes for prilled urea in the Black Sea ports showed growth from $375/t FOB in early January to $445/t FOB in mid-February. In the Baltic, the corresponding figures were at $360/t FOB and $430/t FOB. The most significant factor that determined the dynamics of prices at the beginning of the first quarter was the shift of the market balance towards demand.

On the one hand, the early part of the year is traditionally a period of high demand from Europe and the USA, and European importers had low stocks at the start of the purchasing season. On the other hand, restrictions on the supply of gas to nitrogen production facilities in Egypt at the beginning of the year led to a substantial reduction in export supply.

Shortages of supply of Egyptian urea increased the interest of European buyers in products from other countries, including the supply of prilled urea from the CIS. However, from mid-February, there was a reduction in prices, which continued until the end of the quarter. In the ports of CIS, price reduction was associated with the sale of long positions by traders. A decline in prices for ammonium nitrate in Europe produced additional pressure on the price of urea.

Prices continued to decline in March due to lower demand in the US and Europe, caused by the delay in fertilizer application due to adverse weather conditions. Latin American importers, the biggest buyers of Russian urea, switched to purchasing for current needs, focusing on the dynamics of prices. Toward the end of March, supply increased in the Ukrainian ports in connection with the completion of the season in that area.

Ammonium nitrate
Quotes for ammonium nitrate generally followed the trends in the price of urea. During January and February there was a steady growth in the quotations for the product at the ports of the CIS because of the shortage of the product available for export, due to supplies being allocated for domestic use. In mid-March the trend changed markedly due to lower domestic demand.

Phosphate fertilizers
Until mid-February, global decline in prices continued due to the lack of current demand. In February, major suppliers decreased production, which made it possible to stabilize prices. Then, due to increased demand in Latin America, prices started to restore. By the end of March, indicators of export prices in Tampa rose to $515/t FOB against the lowest prices of $465/t – $475/t FOB. Still, Latin America remained the single largest source of demand. Indian buyers refrained from transactions; closed tenders were held, mostly to test price expectations.

Production and sales

In the first quarter of 2013 the fertilizer market was stable and the Group’s products enjoyed strong demand. Volume of production by the Group’s enterprises remained at the level of the first quarter of last year. A significant portion of production output was sold in April 2013 due to adverse weather conditions and late start of the sowing season.

Financial Situation

Cash generated from operating activities in the first quarter of 2013 amounted to US $168 million, compared to US $174 million in the first quarter of 2012.

As at 31 March 2013, the Company’s net debt amounted to US $801 million. The weighted average interest rate of the loan portfolio in the first quarter of 2013 equalled 4.6% annually compared to 5.8% annually during the same period last year.

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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 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 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 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.

Business

URALCHEM HOLDING P.L.C. Reports IFRS Financial Results for the year 2012

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– Revenue increased to US $ 2,423 million, compared to US $ 2,080 million in 2011.
– Operating profit increased to US $ 734 million, compared with US $ 659 million in 2011.
– Adjusted EBITDA grew to US $ 839 million, compared to US $ 750 million in 2011.
– Net profit amounted to US $ 665 million, compared with US $ 445 million in 2011.

Moscow, Russia (March 12, 2013) — 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, published its audited IFRS Financial Statements for the year 2012.

Dmitry Konyaev, CEO of URALCHEM, OJSC (a Russian holding company of the Group), commented on the 2012 results, “Thanks to the programmes for the modernization of production facilities, which we have successfully implemented in recent years, as well as our efforts to improve the management of the company, the year 2012 was a success for URALCHEM Holding. During the year, we maintained an optimal balance of production, oriented towards current demand, which allowed us to be responsive to the needs of the market. These factors enabled the company to show good operational and financial performance over the past year.”

Financial Results

Revenue for the year 2012 grew to US $ 2,423 million, compared to US $ 2,080 million in 2011. Operating profit amounted to US $ 734 million, or 30% of the revenue, compared with the operating profit of US $ 659 million, or 32% of the revenue in 2011. Net profit for the year 2012 amounted to US $ 665, compared to US $ 445 million in 2011.

During the year 2012, adjusted EBITDA reached US $839 million, compared to US $750 million the year before, a rise of 12%. Adjusted EBITDA margin for the year 2012 comprised 35% of the revenue compared with 36% of the revenue for the year 2011.

Markets

After the fall of the price of ammonia in the first quarter due to lower demand from industrial consumers, prices started to recover in late March and early April. This recovery occurred due to the delayed launch of new facilities and close-down repairs at a number of major enterprises in the Middle East, as well as restrictions on the supply of gas in Trinidad. The same factors determined growth in prices during the second and third quarters. In the fourth quarter, there was a decline in prices associated with the reduction in demand from the industrial consumers in the US, Asia, and North Africa. Over the year, average prices for ammonia on the basis of FOB Yuzhny port grew by 5.2% compared to the same period in 2011.

The urea market remained relatively stable in the first half of the first quarter. However, a sharp rise in prices began later, due to high demand in the United States, backed by demand in Latin America and India. In the second half of the second quarter, prices fell due to the end of seasonal demand in the Northern Hemisphere. During the third quarter, prices were relatively stable, with a tendency to growth towards the end of the quarter, due to increased demand in major markets, which coincided with the closure of a number of CIS and the Middle East facilities for repairs. In the fourth quarter, prices fell due to low buying activity. Overall, in the second half of the year the market was under pressure from massive Chinese exports. As a result, the average price of prilled urea on the basis of FOB Yuzhny port decreased by 3.5% compared to 2011.

The prices of ammonium nitrate in 2012 basically followed the dynamics of the urea price. The price increase in the first quarter was driven by demand in the domestic market of the CIS. Until the middle of the second quarter, prices grew mainly due to the support from price of urea. From the middle of the second quarter, prices fell under the influence of the seasonal decrease in demand and also the pressure of prices for urea. In the third quarter, prices were relatively stable. Near the end of the quarter there was a strong growth in prices due to the lack of available products as a result of a number of enterprises switching to the production of commercial ammonia, as well as due to increased demand in the domestic market of the CIS. Falling prices in the first half of the fourth quarter is associated with pressure from the price of urea. From the middle of the quarter, there was a recovery in prices for ammonium nitrate in the ports of the CIS because of redistribution of the product to the domestic market, as well as switching of production to the manufacture of ammonia. Overall for the year 2012, there was a 2% decline in the prices of ammonium nitrate in the ports of CIS compared to the average price in 2011.

During the first quarter, the price of phosphate fertilizers slightly decreased due to the extremely low market activity. In the second quarter, the signing of the Indian contracts stabilized prices. During the quarter, the market showed a moderate recovery due to demand in Latin America and a number of “niche” markets. The third quarter was characterized by stable prices and low market activity. By the end of the quarter there was a tendency to a slight decrease in prices due to lack of demand in the South Asian markets and the purchasing tactics used by Latin American buyers based on current needs. In the fourth quarter, the downward trend in prices continued. The main reason for the decline in prices remained a lack of demand from South Asia, the low demand activity in Latin America, as well as increasing export supply from the US due to the end of the phosphate season. In 2012 the price of phosphate fertilizers in the CIS ports decreased by more than 12% compared to the average price in 2011.

Sales

Against the background of steady high demand for the Group’s fertilizers in Russia and abroad, the sales in 2012 rose by 18% compared to 2011, amounting to a total of 5,796 thousand tons. Sales of urea increased by 128%, sales of commercial ammonia grew by 50%.

Financial Situation

Due to the increase in revenue, cash generated from operating activities amounted to US $669 million for the year 2012, compared to US $523 million the year before.

On 31 December 2012, the Company’s net debt amounted to US $830 million compared to US $931 million at the end of the previous year. The weighted average interest rate in the loan portfolio of the Group for the year 2012 amounted to 5.2% annually compared to 5.9% annually for the year 2011.

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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 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 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 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.

Business

URALCHEM obtains a Syndicated Loan

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The URALCHEM Group has refinanced part of its loan portfolio by bringing in a five-year syndicated loan.

Moscow, Russia (January 3, 2013) — The URALCHEM Group, a leading Russian producer of mineral fertilizers, has refinanced part of its loan portfolio by bringing in a five-year syndicated loan. As a result of the early redemption of a number of previously obtained loans, all material collaterals have been released, loan payments have been diversified into an optimal currency basket and the average term of the loans in the portfolio has been significantly increased.

The syndicated loan was obtained on 21 December 2012 from a pool of leading international and Russian banks, including JSC Sberbank of Russia, Sberbank (Switzerland) AG, ING Bank NV, Raiffeisenbank, VTB Bank (France) SA, HSBC Bank PLC and Rosbank (Société Générale Group).

The syndicated loan has become the first loan of this kind in the company’s history and attracted considerable interest from the banking community. In the process of syndication, the pool of banks was willing to provide funding of over $500 million, of which URALCHEM took $220 million. The loan documentation made provision for an option of a drawdown in Euros, which the company used. The loan period is 5 years and the company is using assignment of rights on its export contracts as security interest for the loan.

The funds raised have been allocated, among other things, to the early repayment of the company’s current liabilities, which has allowed the removal of collateral obligations from the tangible assets and shares of the Group’s enterprises.

“The banks’ interest in the company confirms its strong financial and operating position, its competitive advantages and the attractiveness of the industry,” said CEO of URALCHEM OJSC Dmitry Konyaev. He added, “The development strategy that we have chosen has allowed the company to significantly improve the structure of its loan portfolio and reduce its volume in 2012. By the end of 2012 the ratio of net debt to EBITDA has become less than 1, which is one of the best results for companies in our industry both domestically and abroad. The fact that first-class banks were willing to provide us with more than twice the amount and that the transaction has allowed us to free up collaterals, is demonstrating URALCHEM’s strong financial position.”

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Public Relations Department
URALCHEM, OJSC
Tel: +7 (495) 721 89 89
E-Mail: pr@URALCHEM.com
Web: http://www.uralchem.com

URALCHEM, OJSC is one of the largest producers of nitrogen and phosphate fertilisers in Russia and the CIS with production capacities of over 2.5 million tonnes of ammonium nitrate, 2.8 million tonnes of ammonia, 0.8 million tonnes of MAP and DAP, 0.8 million tonnes of complex fertilisers and 1.2 million tonnes of urea. URALCHEM, OJSC is the second largest ammonium nitrate producer in the world and number one in Russia, the second largest producer of nitrogen fertilisers in Russia. Key production assets of URALCHEM, OJSC 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 Fertilisers, OJSC in Voskresensk, Moscow region.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of URALCHEM. We wish to caution you that these statements are only predictions. We do not intend to update these statements and our actual results may differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, financial risk management and the impact of general business and global economic conditions.

Business

URALCHEM OJSC Increases Production in the First Nine Months of 2012

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URALCHEM OJSC announces operating results for the first 9 months of 2012.

Moscow, Russia – November 15, 2012 — URALCHEM OJSC announces operating results for the first 9 months of 2012. Production from all the enterprises of the URALCHEM Group increased by 0.5% compared to the same period in 2011, amounting to a total of 4.398 million tonnes. The production of ammonia increased by 9% and there was an 8% increase in the production of urea. The production of chemicals for industrial use increased by 17%, mainly due to increased sales of nitric acid in the domestic market. The production of high-margin products also increased: diammonium phosphate (DAP) was re-launched and the production of complex fertilizers increased by 4%. The manufacture of ammonium nitrate and ammonium phosphate was reduced by 7% and 15% respectively.

Dmitry Konyaev, CEO of URALCHEM, OJSC commented on the operating results for the first nine months of 2012, “Due to a number of successfully implemented modernization and technical upgrading projects, the company’s enterprises worked steadily throughout the first 9 months of 2012. As a result of the market conditions at that time, we focused on increasing the production of ammonia and high-margin products, at the same time reducing production of ammonium nitrate and ammonium phosphate.”

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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, OJSC is one of the largest producers of nitrogen and phosphate fertilisers in Russia and the CIS with production capacities of over 2.5 million tonnes of ammonium nitrate, 2.8 million tonnes of ammonia, 0.8 million tonnes of MAP and DAP, 0.8 million tonnes of complex fertilisers and 1.2 million tonnes of urea. URALCHEM, OJSC is the second largest ammonium nitrate producer in the world and number one in Russia, the second largest producer of nitrogen fertilisers in Russia. Key production assets of URALCHEM, OJSC 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 Fertilisers, OJSC in Voskresensk, Moscow region.