28 Sep 2009 15:58

Metafrax considering purchase or construction of ammonia, carbamide capacity

MOSCOW. Sept 28 (Interfax) - Metafrax is examining opportunities to acquire or build ammonia and carbamide capacity, board chairman Armen Garslyan said at a presentation for investors on Monday.

"Before the crisis we reckoned it would be better to build a new facility, but during the crisis offers have appeared that do not allow us to make a decision now," he said.

If new capacity is built, it will be located in Gubaha, Metafrax's home base. The capacity of the new facility will be at least 600,000 tonnes of carbamide. A unit with that capacity will cost 800 million-850 million euro, he said.

Metafrax is currently reorganizing its construction assets into a separate division. That process will be completed by December 2009. Chemical production will also be formed into a separate division, a process that might be completed next year.

Metafrax expects revenue in 2009 to total 5.5 billion rubles, down from 7.9 billion rubles in 2008.

In future the company is considering opportunities to conduct an IPO, however it is too early to provide a timeframe. First the company must publish its IFRS financials. The company has prepared IFRS financial since 2005, but won't begin publishing them for a certain amount of time. "I can only say that in 2011 the IFRS accounts will definitely appear," he said.

Garslyan added that the company plans to pay a dividend for 2009. "Unless we adjust it, the dividend for 2009 will be the biggest ever," he said.