3 Nov 2009 15:39

Sibur-Mineral Fertilizers expects EBITDA to fall almost 50% in 2009

MOSCOW. Nov 3 (Interfax) - Sibur-Mineral Fertilizers expects EBITDA will decline to 4 billion-4.5 billion rubles in 2009, down from almost 8 billion rubles in 2008, General Director Andrei Teterkin said in an interview with the magazine Gazprom.

"Given the current situation on the nitrate fertilizer market and the cautious forecasts for global economic recovery, Sibur-Mineral Fertilizers expects EBITDA to decline to 4 billion-4.5 billion rubles for the 12 months of 2009," Teterkin said.

The company does not currently plan to enter the markets in phosphate and potassium fertilizers. "In the current market situation we believe the better strategy is to develop the nitrate area; the fertilizer segment that is the most flexible and the least susceptible to the effects of the crisis," he said. Nitrate fertilizer consumption worldwide declined by less than 1% in 2008, compared with declines of 8% and 12% for potassium and phosphate fertilizers respectively.

Prices on nitrate output have risen substantially in recent times, despite the steep drop at the end of 2008: prices are up 5% on carbamide and 35% on ammonia, he said.