Uralkali could produce 10.2-10.3 mln tonnes of potash in 2012
MOSCOW. April 11 (Interfax) - Fertilizer-maker OJSC Uralkali could turn out 10.2-10.3 million tonnes of potash this year, company General Director Vladislav Baumgertner said at a press conference in Moscow.
"From 10 to 10.5 million tonnes is the range in which our production and sales will be. Probably somewhere in the middle," Baumgertner said. "I think that in May-June we will be working at full capacity," he added.
Then negotiating a new contract with China, also with India, could begin, he said.
Potash consumption this year could run to 57-58 million tonnes, Baumgertner said. Actual sales will amount to some 53-55 million tonnes because of inventory in warehouses.
Uralkali is not planning to put money on its balance sheet in the future and intends to return it to shareholders, he said. "The company continues to generate a large cash flow that our investment program does not use. And all that cash flow we will be returning to shareholders in the most different ways. That is normal dividends and special dividends," he said.
Baumgertner did not exclude the possibility the company might decide to pay out additional dividends this year. "We are not ruling it out," he said, noting that all decisions are to be made by shareholders.
The company has an option program, he continued. "This is a program of phantom options," he said, clarifying that it involves payouts without real cash flow.
The company has bought back from the market $404 million in securities and is actively acquiring shares, Baumgertner said. Uralkali shares have risen significantly since the company's buyback program was announced, he said. The company plans to cancel all the repurchased shares.
Uralkali produced 1.9 million tonnes of potash over the first quarter of this year, which was 27% less year-on-year. The company moved to a 75% load on production capacity in March from February's 50%-60%.