Tag Archives: URALCHEM

URALCHEM Increased Production in the First Half of 2013

July 15, 2013 staronepr Leave a comment

Production from all enterprises in the URALCHEM group of companies amounted to 3.14 million tons in the first half of 2013. Output increased by 0.7% compared to the same period last year.

Moscow, Russia (July 15, 2013) — Production from all enterprises in the URALCHEM group of companies amounted to 3.14 million tons in the first half of 2013. Output increased by 0.7% compared to the same period last year.

Production of ammonium nitrate reached 1.42 million tons, an increase by 1% over the same period last year. Ammonia production increased by 1% to 412 thousand tons. Urea production rose to 613.8 thousand tons, which is 2% more than in the first six months of 2012. Output of complex fertilizers (NPK) increased by 1% to 293.2 thousand tons. Production of phosphate fertilizers (MAP / DAP) decreased by 3% to 245.2 thousand tons.

Dmitry Konyaev, CEO of URALCHEM, OJSC, commented on the results for the first half of 2013, “As a result of ongoing projects to improve production efficiency, URALCHEM is continuing to increase output of its key nitrogen products, thereby maintaining a leading position among Russian manufacturers. During the period, the dynamics of phosphate fertilizer production reflected the overall situation on the global market for mineral fertilizers. The continuing low consumer activity in Asian countries, especially in India, has led to a global decline in the prices for phosphate fertilizers. URALCHEM’s wide range of products allows us to respond flexibly to changes in the market. The company continues to expand its product portfolio and has now entered a new niche, that of water-soluble fertilizers. These high-margin products are the fastest growing segment of today’s global market.”

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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 confirmed its commitment to the UK market

June 14, 2013 staronepr Leave a comment

URALCHEM has successfully exhibited at its fourth Cereals event in Lincoln, UK. The company’s new water soluble products were well received by the participants and visitors of the trade show.

Lincoln, UK (June 14, 2013) — URALCHEM has successfully exhibited at its fourth Cereals event in Lincoln, UK. The company’s new water soluble products were well received by the participants and visitors of the trade show.

Although at the moment the demand for soluble fertilizers in the UK is not particularly large, it is well established, and URALCHEM wants its UK customers to know that it is now supplying these products. Soluble fertilizers are primarily used in greenhouse farming; some interest is also coming from liquid fertilizer producers who want to manufacture speciality and added-value products.

The United Kingdom and Ireland remain strategic markets for URALCHEM’s nitrogen based fertilizers. Due to the weather conditions here, the UK market demand has been volatile, when even normally regular seasonal purchases shifted by a couple of months. However, the company’s position is to remain a reliable supplier to its customers and to keep and grow long-established partnership with them.

Graham Dunn, URALCHEM’s Agent in the United Kingdom and Ireland, said, “We have seen a lot of interest to our products, including the NS 30:7 that we first introduced to the UK market a year ago. URALCHEM is one of the first Russian producers to declare that fertilizer should not be seen as a commodity. The company employs highly qualified agronomists and chemists to develop the precisely formulated fertilizers that farmers need. Today we have a large portfolio of speciality products which we want our customers to get to know and use.”

“It is important for UK to recognize that it is part of an inter-connected global market. Today businesses have to compare markets globally: for example, the UK fertilizer market is 5 million tonnes and the one in Brazil 30 million tonnes. Manufacturers will send their products to those who are prepared to pay higher prices. It is already happening, and traditional products destined for the European market, such as calcium ammonium nitrate, are being diverted to Brazil. So, monitoring and responding to global trends will provide British farmers with a better guarantee that their business will survive and prosper.”

For further information about the company and its products please refer to the web-site http://www.uralchem.com.

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

PR representative in the UK and Ireland
Eva Smit
Tel: +44 (0) 7538 978986
eva.smit@holdensmit.com

Business

URALCHEM presents its new SOLAR product line and launches an NS 30:7 promo campaign at UK Cereals 2013

June 12, 2013 staronepr Leave a comment

URALCHEM is using its traditional participation in the leading technical event for the UK arable industry, Cereals 2013, to present SOLAR, its new line of water-soluble fertilizers, to the British and Irish markets. The exhibition will also mark the beginning of a large-scale, year long promotion campaign for URALCHEM’s sulphur containing fertilizer NS 30:7.

Lincoln, UK (June 12, 2013) — URALCHEM, the second largest ammonium nitrate producer in the world is using its traditional participation in the leading technical event for the UK arable industry, Cereals 2013, to present SOLAR, its new line of water-soluble fertilizers, to the British and Irish markets. The exhibition will also mark the beginning of a large-scale, year long promotion campaign for URALCHEM’s sulphur containing fertilizer NS 30:7.

True to its strategy of developing tailored products that meet the demands of UK market, URALCHEM is now offering its new line of 100% water-soluble fertilizers, SOLAR. Currently, the product portfolio includes potassium nitrate NK 13:46, monoammonium phosphate NP 12:61 and calcium nitrate Ca(NO3)2.With guaranteed high chemical purity, environmental friendliness and high quality, these products support a wide range of applications; they are suitable for drip watering, foliar fertilization of plants, root fertilization of seedlings, fertilizing potted ornamental plants, flowers, lawns, soccer fields and other applications. The physiologically balanced content of nutrients ensures proper feeding of plants. URALCHEM’s SOLAR fertilizers also help to extend the service life of drip irrigation systems because no insoluble mineral salt deposits are formed in drippers and pipelines.

“We are sure that our SOLAR fertilizers will add value in our supply chain and help to cement relationships with on-farm customers. Being able to offer a wider range of grades means that we can respond to the results of soil analyses more precisely with in-house products. This helps to improve crop quality and volumes through better balanced plant nutrition, thus improving on-farm economic outcomes. Furthermore, the company’s product range suits both farmers and distributors alike. We are pleased to say that different grades from the SOLAR product line can be mixed to prepare solutions with predetermined proportions of nutrients,” said URALCHEM’s Business Development Director, Mikhail Genkin.

URALCHEM is also using Cereals 2013 to launch a promotion campaign for NS 30:7 in the United Kingdom. The company presented this product at the last Cereals exhibition in 2012. Since then NS 30:7 has proved very popular worldwide as an excellent source of combined nitrogen and sulphur nutrition.

Within the framework of a new large scale campaign, URALCHEM’s specialists will hold a number of seminars with potential customers in all key regions of the UK. Together with representatives of leading machinery manufacturers, they will carry out dispersion tests and lay a number of test fields. The programme will also include a large-scale media campaign.

Mikhail Genkin commented, “As well as being consumers of URALCHEM’s standard mass usage products, the United Kingdom and Ireland remain key markets for the company’s complex fertilisers. The UK’s long tradition of using fertilizers to increase crops and its high level of agricultural sophistication has created stringent criteria for the quality and effectiveness of products on the market. Using special fertilizer grades with an appropriate ratio of nutrients is becoming essential to ensure the continued improvement of crop yield. That’s why we are interested in bringing here our most state-of-the-art and market-tailored products, and we are prepared to reach out to each farmer showing the advantages of these fertilizers.”

The SOLAR product line and NS 30:7 will be presented at the company’s stand 8-H-830.

Visitors will also be able to see URALCHEM’s other products that the company has been successfully supplying to the UK and Ireland since 2008.

For further information about the company and its products please refer to the web-site http://www.uralchem.com.

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

PR representative in the UK and Ireland
Eva Smit
Tel: +44 (0) 7538 978986
E-Mail: eva.smit@holdensmit.com

Business

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

May 29, 2013 staronepr Leave a comment

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 paid more than 232 Million Roubles for Social Projects in 2012

April 29, 2013 staronepr Leave a comment

In 2012, the URALCHEM group increased funding for social and charitable projects to 232.3 million roubles, compared to more than 90 million roubles in 2011.

Moscow, Russia (April 29, 2013) — In 2012, the URALCHEM group increased funding for social and charitable projects to 232.3 million roubles, compared to more than 90 million roubles in 2011.

“We see the support of social and charitable programmes as one of the most important parts of corporate ethics. Record production levels and the financial results achieved by the company in 2012 have allowed us to increase funding for social programmes by almost 2.5 times compared with 2011,” the Chairman of the Board of Directors of URALCHEM, Dmitry Mazepin, commented.

The main focus of URALCHEM’s charitable activity is the support of children’s and youth sports. The Group’s enterprises in 2012 contributed more than 77.1 million roubles for this purpose. In addition, assistance is provided to child and youth programmes aimed at improving health, education and recreation. Significant donations are also made to the support of veterans and pensioners. Traditionally, URALCHEM assists in organizing various sports and cultural events in the cities where the company’s facilities are located.

The company’s largest plant in Kirovo-Chepetsk became the largest contributor, paying 97.9 million roubles in donations and sponsorships. A significant amount of these funds was provided for an unprecedented initiative to support 70 large low-income families from the Kirov Region; all these families received Lada Granta cars from URALCHEM.

The Azot Branch and Minudobrenia, both located in the Perm Region, allocated 45.8 million roubles for charitable projects. The Voskresensk Mineral Fertilizers plant in the Moscow Region spent 27.7 million roubles on sponsorship and charity. An addition to the generous contributions made by the separate enterprises, nearly 61 million roubles was paid directly by the URALCHEM company itself for good causes.

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

Business

URALCHEM has renovated a lecture hall in the Chemistry Department of Moscow University

April 29, 2013 staronepr Leave a comment

One of the lecture halls at the Chemistry Department of Moscow State University has been completely renovated and re-equipped using funding provided by URALCHEM.

Moscow, Russia (April 29, 2013) — One of the lecture halls at the Chemistry Department of Moscow State University has been completely renovated and re-equipped using funding provided by URALCHEM.

URALCHEM was responsible for both the financing and organization of all phases of the work, which ranged from architectural design and major repairs to the purchase of computer equipment and furniture. Repair work began in October 2012 and is now completed. Today, the renovated hall is a comfortable auditorium, seating 35 students and containing the latest laboratory equipment, computers, office and video conferencing facilities. The project costs were 5.2 million roubles.

URALCHEM and Moscow State University have been collaborating since 2011, since when the Department of Chemistry has set up special training programmes for the company’s employees. The training curriculum includes a 72-hour course for workers without any previous educational background in chemistry (“Chemistry for non-chemists”), and a 105-hour course for those who already hold college and university degrees in chemistry (“Chemical technology of inorganic substances”).

Dmitry Konyaev, CEO of URALCHEM commented, “We attach great importance to our cooperation with the Chemistry Department of Moscow State University. It is the leading university in the country and whose graduates are sought after in many sectors of the economy. The quality of its education remains at a consistently high level. I am therefore pleased that our partnership is developing and I hope that our support will facilitate the maintenance of its high educational standards.”

URALCHEM’s director of Human Resources, Svetlana Chekalova said, “I would like to thank the administration and staff of the Chemistry Department of Moscow State University for its cooperation. The Department’s teachers were very flexible in developing an academic programme that meets the needs of URALCHEM. We are a young company focused on development, and we are pleased with the desire for self-improvement shown by our employees. Since the beginning of our cooperation with Moscow State University, 236 workers from URLACHEM’s enterprises have already completed the courses. Our cooperation with one of the best universities in the country is helping to raise the professional level of our own people and is at the same time increasing the overall prestige of the chemist’s profession.”

Igor Kotlobovsky, Vice Rector of Moscow State University said, “On behalf of Moscow University, I would like to thank URALCHEM for its support, which has allowed the Department of Chemistry to have state-of-the-art equipment installed in one of its halls. The room has been fully modernised, whilst preserving its historical facade and decorative ceiling mouldings. Classes can now even be held remotely, so, students such as URALCHEM’s employees will be able to be trained without leaving their workplace. The partnership between the university and URALCHEM shows how fruitful cooperation of science and business can be.”

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

Business

URALCHEM increased Funding for Environmental Programs in 2012 and Improved its Environmental Performance

April 24, 2013 staronepr Leave a comment

“URALCHEM attaches great importance to the preservation of the environment and pursues a deliberate and transparent environmental policy in the regions where it operates. One of the most important results of our work has been the fact that in 2012 all our enterprises have kept well within the limits for permissible concentrations of pollutants set by the government regulators.” commented by Dmitry Konyaev, CEO of URALCHEM.

Moscow, Russia (April 24, 2013) — In 2012, the URALCHEM group increased funding for environmental programs to 465.6 million roubles. This represents an increase of more than 28% compared with 2011. Successful projects included new modern processing facilities and treatment systems, industrial waste recycling and reclamation of previously polluted sites.

The Azot branch of URALCHEM in Berezniki in 2012 implemented an environmental programme costing a total of more than 44 million roubles. During the year, factory emissions were reduced by 3%, concentration of monoethanolamine pollutants in waste water was reduced by 37% and suspended substances pollutants by 11%, oxides of nitrogen emissions were reduced by 10% and carbon monoxide emissions decreased by 9%.

MFP Kirovo-Chepetsk Chemical Works in Kirovo-Chepetsk in 2012 spent 259 million roubles on environmental measures. During the year, emissions decreased to 52.5% of the limits set by the regulators, compared with 57.8% in 2011. New technical equipment was commissioned and gas cleaning systems were modernized. One of the highlights was the completion of work to eliminate the liquid phase at the 6th section of the chalk tailings storage facility. This work is part of a large, multi-year reclamation project being carried out on the facility.

Minudobrenia in Perm in 2012 spent more than 70 million roubles on environmental activities. Because of the specific type of production at the facility, 90% of costs are related to the improvement of water management through technology improvement projects. These projects reduce water consumption by eliminating leaks in water supply and sewage networks. This is particularly important in light of the fact that the enterprise does not discharge waste water to the surface waters.

URALCHEM’s enterprise in Voskresensk in 2012 spent 92 million roubles on environmental projects. Among the main activities were the modernization of equipment and the improvement of technological processes in the major manufacturing plants, as well as in the shops for the neutralization and treatment of industrial waste water.

Dmitry Konyaev, CEO of URALCHEM commented:
“URALCHEM attaches great importance to the preservation of the environment and pursues a deliberate and transparent environmental policy in the regions where it operates. One of the most important results of our work has been the fact that in 2012 all our enterprises have kept well within the limits for permissible concentrations of pollutants set by the government regulators.”

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

Business

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

March 12, 2013 staronepr Leave a comment

– 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

Business

URALCHEM to Give 100,000 Euros to Schools in Riga

February 11, 2013 staronepr Leave a comment

OJSC URALCHEM, the Ziedot.lv Fund and two secondary schools in Riga have agreed to carry out a joint charity project. A memorandum was signed by URALCHEM CEO Dmitry Konyaev, Manager of the Fund Ziedot.lv Ruta Dimanta and the headmasters of the schools, Iveta Stivrinya and Boris Antonov.

Riga, Latvia – February 11, 2013 — OJSC URALCHEM, the Ziedot.lv Fund and two secondary schools in Riga have agreed to carry out a joint charity project. A memorandum was signed by URALCHEM CEO Dmitry Konyaev, Manager of the Fund Ziedot.lv Ruta Dimanta and the headmasters of the schools, Iveta Stivrinya and Boris Antonov.

Within the framework of the project, URALCHEM will provide funding to the amount of more than 70,000 Lati (about 100,000 Euros), which will be used to equip modern chemistry classrooms to state-of-the-art standards, as well as providing for general update and improvement at both schools. The funds will be distributed in equal proportions between the schools, which have a total enrollment of over 1,000 students. The charitable organization Ziedot.lv will provide organizational and administrative support to the project.

Dmitry Konyaev, CEO of URALCHEM, OJSC: “Supporting charity programmes has always been part of our social policy aimed at improving the life of people in the regions where the company has a presence. In Riga we have been constructing a terminal for transhipment of mineral fertilizers since 2009. That is why we decided to help two schools located in the neighbouring Vecmilgravis area. Since we are a company, based on chemistry, the idea was to start with a project that would improve standards for teaching chemistry, one of the basic subjects for school children.”

Ruta Dimanta, Head of the Fund Ziedot.lv: “We share URALCHEM’s desire to provide real help in the social sphere and are especially grateful for the company’s efforts to support children. Our cooperation with URALCHEM started in September 2012 when we launched a charity programme to help children with disabilities. As part of this programme, which is being successfully implemented, URALCHEM is providing the funding to the amount of 80,000 Euros and the Ziedot.lv Fund is organizing for the treatment of children in leading medical institutions in Russia.”

Boris Antonov – Headmaster: “We would like to thank URALCHEM and the Ziedot.lv Fund for this initiative. Being a chemistry teacher myself, I welcome the fact that URALCHEM has paid attention to this subject. Using state-of-the-art equipment and teaching methods should stimulate our students’ interest in chemistry.”

Iveta Stivrinya – Headmaster: “One of the long traditions of our school is the successful combination of the humanitarian and technical approaches to teaching a variety of curricula. With the help of URALCHEM and the Ziedot.lv Fund, we are very pleased to be able to continue this tradition by offering our students an education in this interesting and important subject.”

URALCHEM’s social policy covers many different aspects of life. A lot of attention is also paid to cultural activities. For example, in June 2012, with the support of URALCHEM, the town of Jurmala hosted Latvia’s first concert performed by the Symphony Orchestra of the Mariinsky Theatre led by Valery Gergiev. In December 2012, thanks to the support of URALCHEM, the company ART Forte organized a visit by the Igor Moiseyev State Academic Ensemble of Popular Dance to Riga performing their programme “Christmas with the people of the world.”

Reference information

School No. 31 opened in 1952. It is located at 11 Skuyu St, Riga. The school has 50 teachers and more than 500 students. The teaching is conducted in Latvian.

School No. 46 was founded in 1954. It is located at 28 Skuyu St, Riga. The school has 56 teachers and more than 500 students. The teaching is conducted in Russia.

URALCHEM is one of the world’s major producers of mineral fertilizers, which are used by Russian and foreign farmers. The company has four enterprises in Russia (Kirov Region, Perm Region and Moscow Region). The company employs about 11.5 thousand people. URALCHEM implements major social and environmental programmes. In 2011, the company gave more than 2.4 million Euros for the development of children and youth sports, educational programmes, assistance to veterans and disabled people. The company’s costs for environmental protection in 2011 amounted to more than 8.5 million Euros.

Contacts:
Yana Krallisha
URALCHEM
PR Consultant
Mobile: 26462844
E-Mail: jana@komunikacijas.lv

Ilze Oshane
Ziedot.lv Fund
Head of Communications
Mobile: 29400422
E-Mail: ilze@ziedot.lv

Business

URALCHEM obtains a Syndicated Loan

January 3, 2013 staronepr Leave a comment

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.”

-Ends-

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