Press release -



Revenue increased to US $ 566 million, compared to US $ 325 million in Q1 2010
Operating profit increased to US $ 160 million, compared with US $ 39 million in Q1 2010
Adjusted EBITDA grew to US $ 186 million, compared to US $ 66 million in Q1 2010
Net profit amounted to US $ 161 million compared to US $ 19 million in Q1 2010

URALCHEM Holding P.L.C. (hereinafter URALCHEM Holding or the Company), 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 1st Quarter of 2011 ending 31 March 2011.

Dmitry Konyaev, CEO of URALCHEM, OJSC (part of the URALCHEM Group), commented on the results for the 1st Quarter of 2011: “In the first Quarter of 2011 the market conditions for mineral fertilisers continued to be favorable. The global demand and prices for fertilisers almost reached their pre-crisis levels. This confirms that the global industry continues to be one of the most steadily growing segments of the economy. Continued implementation of our strategy aimed at increasing the share of high margin products has strengthened the Company's position in the premium markets. 56% of the Company's export sales in the first quarter of 2011 were in the European market.”

Financial Results

Revenue in Q1 2011 grew by 74% to US $ 566 million, compared to US $ 325 million in Q1 2010. Operating profit amounted to US $ 160 million, or 28% of the revenue, compared with operating profit of US $ 39 million, or 12% of the revenue in Q1 2010.

In Q1 2011 net profit increased 8.5 times and amounted to US $ 161 million, compared with US $ 19 million in Q1 2010.

In Q1 2011 adjusted EBITDA reached 186 million US $ compared to US $ 66 million for the same period last year, the increase by 182%. Adjusted EBITDA margin in Q1 2011 comprised 33% of revenue, compared with 20% of revenue in Q1 2010.


During Q1 2011 the volume of export sales almost doubled, reaching US $ 411 million compared to the volume of export sales of US $ 214 million in Q1 2010. Export sales comprised more than 75% of total sales.

During Q1 2011 the volume of domestic sales amounted to US $155 million in comparison with US $ 111 million in Q1 2010.

The ammonia market was characterized by a steady increase in prices. In late March, these reached $ 508/t FOB Baltic. The main factor determining the price dynamics was the continuing shortage of available product against the background of strong demand in several major markets.

In the urea market, as in 2010, there was a price correction downwards. The main reason for this was lack of import demand in most markets, while world production remained at a high level. However, the prices remained at a fairly high level: $ 330-350/t FOB Baltic and Black Sea ports.

Prices for ammonium nitrate during almost the entire 1st Quarter remained consistently high - at $ 300/t FOB Baltic and Black Sea ports. This situation was mainly determined by the absence of free product in the market, since large amounts of nitrate from the CIS were sold in the domestic market.

During the 1st Quarter of 2011 prices for phosphate fertilisers grew steadily, exceeding $ 600/t FOB Baltic and Black Sea ports by the end of the Quarter. The main growth drivers were the strong demand in the markets of Latin America and Europe, as well as shortages of supply and the absence of the product from Tunisia in the market.


In Q1 2011, sales of commercial products of the Group amounted to 1.45 million tons, up 20% from Q1 2010. Sales have grown considerably thanks to the restoration of the agrochemical market. The sales volume of urea increased by 50% in Q1 2011. Sales of ammonia decreased by 14% due to the increase of the share of dry products.

Aleksei Strakhov, Commercial Director of URALCHEM, OJCS commented on the sales of commodity products in Q1 2011: "During the 1st quarter of 2011 our products sales reached their record of 1.45 million tons, 20% higher than during the same period last year. These significant results were achieved thanks to the investment program to build capacity for the production of ammonia and dry fertilisers, as well as to the favorable market conditions for phosphate fertilisers. The growth of sales in the segment of phosphorus in the 1st Quarter of 2011 amounted to 120% of the sales in the 1st Quarter of 2010 "

Financial situation

Cash generated from operations (before tax and interest) increased by 496% to reach US $ 167 million in Q1 2011 from US $ 28 million in Q1 2010. This largely resulted from increased revenue, which occurred as a result of significant growth in demand and prices in the fertiliser market.

On March 31, 2011 the Company's net debt amounted to US $ 1227 million. The weighted average interest rate in the loan portfolio in Q1 2011 decreased to 8.0% per annum compared to 9.6% in the same period last year.


URALCHEM is one of the largest producers of nitrogen and phosphate fertilisers in Russia and the CIS with production capacities of over 2.5 million tons of ammonium nitrate, 2.2 million tons of ammonia, 0.8 million tonnes of MAP and DAP, 0.8 million tons of complex fertilisers and 0.5 million tons of urea. URALCHEM is the second largest ammonium nitrate producer in the world and number one in Russia. URALCHEM's key production assets include Kirovo-Chepetsk Chemical Works, OJSC in Kirovo-Chepetsk, Kirov region; Azot, OJSC in Berezniki, Perm 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.

Media Contact Information
Name: Eva Smit
Phone: +44 (0) 7538 978986
Country: United Kingdom