EuroChem net profit surges to 9.5 bln rubles in Q2
MOSCOW. Aug 17 (Interfax) - Russian chemicals company EuroChem increased net profit to International Financial Reporting Standards 280% year-on-year in the second quarter of 2011 to 9.5 billion rubles, the company reported.
Consolidated revenue grew 30% to 30.9 billion rubles. EBITDA was 11.9 billion, up 54% and the EBITA margin went up by 6 percentage points to 38% from 32%.
The company attributes to growth largely to a rise in prices and an emphasis on products with high added value.
There was a slight increase in nitrogen and phosphorus sales (excluding iron ore and baddelyte) to 2 million tonnes from 1.99 million in the first quarter of 2011. Iron ore and baddelyte sales dropped 10% to 1.44 million tonnes because of reduced iron ore production volumes
Nitrogen sales went up 4% year-on-year in the fourth quarter to 1.42 million tonnes. The biggest climb was for carbamide, urea-ammonium mixtures and calcium nitrate at 26%, 33% and 78%, respectively. Carbamide sales rose to 517,000 tonnes and sales of urea-ammonium mixtures rose to 196,000 tonnes. Calcium nitrate sales totaled 50,000 tonnes. Revenue from nitrogen sales totaled 14.3 billion rubles and the EBITDA was 5.1 billion rubles (up 78%).
Revenue in the phosphorus segment increased 24% to 15.7 billion rubles. EBITDA reached 6.2 billion rubles, up 25%. Iron ore sales dropped 11% in the second quarter. Sales of monoammonium and diammonium phosphate fell 4% to 442,000 tonnes. The company says it had a high result in the first half of 2010 because of liquidation of stocks accumulated in 2009.
EuroChem continued to develop potash fields according to its schedule. Capital spending on development of the Gremyachinskoye and Verkhnekamskoye fields increased in the second quarter and total spending in the first half was 4.2 billion rubles. EuroChem plans to produce a total 8 million tonnes of potash annually by 2021 in both fields. The total cost of both projects is estimated at around $6 billion, of which around 17% has been invested so far.
Fertilizer prices continued to go up in the second quarter carbamide prices averaged $414 per tonne (FOB South), up 75% on the second quarter of 2010. Prices for ammonium nitrate averaged $315 (FOB Black Sea), up 71%.
Phosphate and potash fertilizer prices were consistent with nitrogen segment trends. The average price for diammonium phosphate went up 42% to $622 (FOB Baltic Sea). Contractual prices for potash fertilizer went up $50 to $375 per tonne (FOB Baltic Sea).
The EuroChem Group is one of the top ten international leaders in the agrochemicals industry. It mostly produces nitrogen and phosphorus fertilizer. The group includes the Russian plants - Nevinnomysskiy Azot, Novomoskovskiy Azot, Phosphorit, Belorechenskie Fertilizer and Kovdorskiy GOK, as well as the Lithuanian fertilizer plant Lifosa.