17 Jun 2010 11:32

Chelyabinsk Zinc posts 458 mln rubles net profit to IFRS in Q1

MOSCOW. June 17 (Interfax) - Chelyabinsk Zinc Plant closed Q1 2010 with net profit of 458 million rubles to International Financial Reporting Standards (IFRS), compared with losses of 224 million rubles in the same period of last year, the company said.

Sales revenue rose 72% to 2.685 billion rubles and earnings before taxes, depreciation and amortization (EBITDA) were 752 million rubles.

CZP financial results for Q1 2010 (mln rubles):

Q1 2010 Q1 2009
Sales revenue 2 685 1 565
Gross profit 792 161
EBITDA 752 154
EBITDA margin 28% 10%
Pretax profit (loss) 551 (289)
Net profit (loss) 458 (224)

CZP raised zinc production 59% year-on-year in Q1 2010 to 38,600 tonnes, and sold 38,200 tonnes of zinc, up 56%. Revenue from the sale of zinc and its alloys rose 40% year-on-year in the back of higher sales in tonnage and zinc prices on the LME, which rose from $1,174/tonne in Q1 2009 to $2,288/tonne in Q1 2010.

Cost of sales grew 35% year-on-year in Q1 2010 to 1.893 billion rubles, driven partly by higher input costs, which rose to 1.108 billion rubles from 693 million rubles, and partly due to the higher sales in tonnage and LME prices.

CZP produces over 60% of Russia's zinc. Urals Mining and Metals Company (UMMC) teamed up with Russian Copper Company to take CZP over last fall. They acquired 100% of NF Holdings B.V., which owns 58% of CZP. UMMC owns two-thirds of the block of shares acquired in CZP, the holding's chief, Andrei Kozitsyn, has said. The cost of the acquisition has not been disclosed.