Eurochem boosts IFRS earnings 80% in 2010
MOSCOW. Feb 28 (Interfax) - EuroChem Mineral and Chemicals Company boosted net profit to International Financial Reporting Standards (IFRS) 80% in 2010 to 20.1 billion rubles, the company said.
Sales revenue grew a third to 97.8 billion rubles, earnings before taxes, depreciation and amortization (EBITDA) rose 80% to 29.9 billion rubles and the EBITDA margin grew to 31% in 2010, from 22% in 2009.
Fertilizer sales volumes for 2010 were up 8% year-on-year, with combined nitrogen and phosphate volumes at 8.086 million tonnes excluding iron ore and baddeleyite. Iron ore and baddeleyite sales volumes increased 10% to 6.124 million tonnes in 2010 compared with 5.584 million tonnes in 2009.
Due to favorable trends in product prices, revenue and EBITDA in Q4 accounted for 29% and 35% of the full-year result. Net profit for Q4 2010 amounted to RUB 8.3bn, up 285% from RUB 2.2bn in Q4 2009.
Net debt/EBITDA was 1.13 at end 2010, compared with 2.21 at end 2009.
Sales volumes for EuroChem's nitrogen segment increased 5% to 5.671 million tonnes in 2010 on the back of the overall market recovery. Sales of organic synthesis products, which are also reported as part of the nitrogen segment, were up 23% compared to 2009, amounting to 455,000 tonnes in 2010. Volumes, combined with higher prices on the overall product mix provided for a 19% increase in revenues for the nitrogen segment, to RUB 47.2bn in 2010 vs. RUB 39.6bn a year earlier. Nitrogen EBITDA for 2010 was RUB 13.6bn, 46% higher than the RUB 9.3bn result for 2009, primarily due to revenues rising faster than costs.
EuroChem Group is a top ten agrochemical company globally by nutrient capacity. It produces primarily nitrogen and phosphate fertilizers, which are supplied to agricultural producers and related intermediaries worldwide, as well as certain organic synthesis products and iron ore. EuroChem's main manufacturing assets include Nevinnomysskiy Azot, Novomoskovskiy Azot, Phosphorit, EuroChem - BMU, Kovdorskiy GOK plants in Russia and Lifosa plant in Lithuania. The Group is vertically integrated with activities spanning from mining to production logistics and distribution. EuroChem holds licenses to develop potash reserves in Russia which entitle it to an estimated fifth-largest volume of potash reserves globally.
