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URALCHEM released nine-month unaudited financial resultsqrcode

Nov. 22, 2012

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Nov. 22, 2012
Revenue increased to US $1,804 million, compared to US $1,556 million in the first nine months of 2011.
Operating profit increased to US $553 million, compared to US $487 million in the first nine months of 2011.
Adjusted EBITDA grew to US $632 million, compared to US $560 million in the first nine months of 2011.
Net profit amounted to US $600 million, compared to US $318 million in the first nine months of 2011.
 
URALCHEM HOLDING P.L.C. , a Cypriot holding company of the URALCHEM Group (hereinafter called the Group), one of the largest producers of nitrogen and phosphate fertilisers in Russia, announced its unaudited IFRS financial results for the first nine months of 2012 ending 30 September 2012.
 
Dmitry Konyaev, CEO of URALCHEM, OJSC (part of the Group), commented on the results for the first nine months of 2012: "During nine months of this year the Company showed steady improvement of its financial performance compared to the results for the same period of 2011. To this contributed the acquisition earlier this year of another production unit, Minudobrenia, located in Perm and rising world prices for our main products, ammonia and urea. Looking back at the first nine months, we are optimistic about the full-year results for 2012."
 
Financial Results
Revenue in the first nine months of 2012 grew to US $1,804 million, compared to US $1,556 million in the first nine months of 2011. Operating profit amounted to US $553 million compared with operating profit of US $487 million in the first nine months of 2011. Operating profit margin amounted to 31% both in the first nine months of 2012 and in the same period of the previous year.
 
In the first nine months of 2012, net profit amounted to US $600 million, compared with US $318 million in the same period in 2011.
 
In the first nine months of 2012 adjusted EBITDA reached US $632 million compared to US $560 million for the same period last year, an increase of 13%. Adjusted EBITDA margin in the first nine months of 2012 comprised 35%, compared with 36% in the first nine months of 2011.
 
Markets
During the third quarter of 2012, price dynamics for fertilizers and intermediate products were different.
 
Prices for ammonia in the third quarter showed a significant increase due to growing demand and limited supply. During these three months, the price level rose by $50 / t, and reached $650 / t FOB Port of Yuzhny by the end of September.
 
In the absence of a strongly marked trend, the urea market was characterized by high volatility. Prices have not shown any significant increase or noticeable reduction, remaining within the limits of $360 to $400 / t FOB the ports of the CIS.
 
Ammonium nitrate prices mainly matched the dynamics of urea prices during the third quarter.
 
The global market for phosphate fertilizers in the third quarter of 2012 showed low levels of activity. In September, there has been a downward trend in prices amid a lack of demand in South Asia (India, Pakistan).
 
Sales
As the demand for the Group’s products both in Russia and abroad was high and stable, the volume of sales in the first nine months of 2012 increased by 16% compared to the same period in 2011 and totalled 4,357 thousand tonnes for all products. Sales of urea, increased by 144%, largely contributed to the rise. Due to high demand in the ammonia market, sales of ammonia increased by 54%, while sales of ammonium nitrate decreased by 6%. Sales of "other chemicals" increased by 19%, mainly due to increased sales of ammonium nitrate for industrial use in the domestic market.
 
Financial Situation
Increased revenues contributed to the increase of cash generated from operations to US $472 million in the first nine months of 2012 rise, compared to US $330 million in the same period last year.
 
As at September 30, 2012 the Company's net debt amounted to US $945 million. The weighted average interest rate in the loan portfolio during the first nine months of 2012 comprised 5.8% per annum compared to 7.9% in the same period last year.
 

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