-
Revenue increased to US $673 million, compared to US $566 million in
Q1 2011.
-
Operating profit increased to US $178 million, compared with US $160
million in Q1 2011.
-
Adjusted EBITDA grew to US $207 million, compared to US $186 million
in Q1 2011.
-
Net profit amounted to US $354 million, compared with US $174 million
in Q1 2011.
Moscow,
Russia – May 31, 2012 -- URALCHEM
HOLDING P.L.C. (hereinafter URALCHEM Holding or the
Company), a Cypriot holding company of the URALCHEM Group
(hereinafter the Group), one of the largest producers of nitrogen and
phosphate fertilizers in Russia, announced its unaudited IFRS
financial results for the first quarter of 2012 ending 31 March 2012.
Key
Financial Figures for Q1 2012 and 2011 (US
$ million)
Q1
2012
|
Q1
2011
|
Year-on-Year
Change, %
|
|
Revenue
|
673
|
566
|
19%
|
Gross profit
|
375
|
317
|
18%
|
Gross profit margin
|
56%
|
56%
|
-
|
Operating profit
|
178
|
160
|
11%
|
Operating profit
margin
|
26%
|
28%
|
-7%
|
Net profit
|
354
|
174
|
103%
|
Net profit
margin
|
53%
|
31%
|
71%
|
Adjusted EBITDA
|
207
|
186
|
11%
|
Adjusted EBITDA
margin
|
31%
|
33%
|
-6%
|
Net cash
generated from operating activities
|
174
|
167
|
4%
|
Dmitry
Konyaev, CEO of URALCHEM, OJSC (part of the Group), commented on the
first quarter of 2012 results, “I am pleased with the Company’s
results in the first quarter of this year. We are moving ahead as
planned. Net profit in the first quarter of 2012 more than doubled
compared to the same period last year. This happened due to the
acquisition of Minudobrenia in Perm, as well as the reassessment of
our share in the enterprise. Besides, the net profit figure was
influenced by a considerable reduction in interest expenses on loans
which became possible after we refinanced the loan portfolio last
year.”
Financial
Results
Revenue
for the first quarter of 2012 grew 19% to US $673 million, compared
to US $566 million in the first quarter of 2011. Operating profit
amounted to US $178 million, or 26% of the revenue, compared with the
operating profit of US $160 million, or 28% of the revenue in the
first quarter of 2011.
Net
profit for the first quarter of 2012 more than doubled, amounting to
US $354 million, compared to US $174 million in the first quarter of
2011. Without the reassessment of the Company’s share in
Minudobrenia, Perm the net profit growth comprised 15%.
During
the first quarter of 2012, adjusted EBITDA reached US $207 million,
compared to US $186 million the year before, a rise of 11%. Adjusted
EBITDA margin for the first quarter of 2012 comprised 31% of revenue
compared with 33% of revenue for the first quarter of 2011.
Markets
In
the first quarter of 2012 the prices of fertilizers and intermediates
showed significantly different dynamics. Prices for ammonia at the
Yuzhny port fell to $70 / t due to low demand, both in agriculture
and industry, which coincided with the launch of Qafco V. Market
recovery began only in late March.
During
January to early February the urea market repeated its dynamics in
2011. However, in mid-February a rapid increase in the price of urea
started due to high demand in the U.S. The late Q1/early Q2 price
level approached peak figures ??of 2011 even surpassing them at
certain markets. Prospects for market development in the second
quarter remain optimistic for market participants.
Prices
for ammonium nitrate were stable during the first quarter due to high
volumes of domestic market shipments.
The
global market of phosphate fertilizers in the first quarter of 2012
was characterized by low activity, with prices going down slightly.
European demand was limited due to severe weather conditions and
financial instability. Moderate recovery in prices occurred in late
Q1 due to higher demand in Latin America and the U.S. domestic
market.
Sales
In
the first quarter of 2012 the Group’s product sales amounted to 1.7
million tons, up 20% compared to the first quarter of 2011. Through
the acquisition of OJSC Minudobrenia, Perm in January 2012, sales of
urea and of ammonia increased significantly.
Sales
of Commercial Products of URALCHEM Group in Q1 2012-2011 (thousands
of tons)
| Name of Product |
Q1 2012
|
Q1 2011
|
Year-on-Year Change, %
|
Ammonium nitrate and its derivatives
|
651
|
640
|
2%
|
| Urea |
363
|
166
|
119%
|
| Ammonia |
204
|
115
|
78%
|
| Phosphate based fertilizers |
169
|
191
|
-12%
|
| Complex fertilizers |
143
|
175
|
-18%
|
Other chemicals, including ammonium nitrate for
industrial use
|
191
|
153
|
25%
|
Total
|
1,721
|
1,440
|
20%
|
Financial
Situation
Cash
generated from operating activities grew by 4%, from US $167 million
in the first quarter of 2011 to US $174 million in the first quarter
of 2012.
On
31 March 2012, the Company’s net debt amounted to US $1,076
million. The weighted average interest rate in the loan portfolio for
the first quarter 2012 decreased to 5.85% compared to annual 8.0% for
the same period last year.
-Ends-
For
more information, please visit the Company web site
http://www.uralchem.com
or use the following contact information:
PR
department
URALCHEM,
OJSC
Tel:
+7 (495) 721 89 89
E-Mail:
pr@uralchem.com
URALCHEM
HOLDING P.L.C. is a holding company of the URALCHEM Group, which
includes four fertilizer manufacturing facilities in Russia. URALCHEM
Group is one of the largest producers of nitrogen and phosphate
fertilizers in Russia and the CIS with production capacities of over
2.5 million tons of ammonium nitrate, 2.8 million tons of ammonia,
0.8 million tons of MAP and DAP, 0.8 million tons of complex
fertilizers and 1.2 million tons of urea per year. URALCHEM Group is
the second largest ammonium nitrate producer in the world and number
one in Russia, the second largest producer of nitrogen fertilizers in
Russia. URALCHEM Group’s key production assets include Azot Branch
of URALCHEM, OJSC in Berezniki, Perm Region; OJSC
Minudobrenia, Perm; MFP Kirovo-Chepetsk
Chemical Works, OJSC Branch in Kirovo-Chepetsk, Kirov region;
Voskresensk Mineral Fertilizers, OJSC in Voskresensk, Moscow region.
Some
of the information in this press release may contain projections or
other forward-looking statements regarding future events or the
future financial performance of URALCHEM. We wish to caution you that
these statements are only predictions. We do not intend to update
these statements and our actual results may differ materially from
those contained in our projections or forward-looking statements,
including, among others, the achievement of anticipated levels of
profitability, growth, cost and synergy of our recent acquisitions,
the impact of competitive pricing, the ability to obtain necessary
regulatory approvals and licenses, the impact of developments in the
Russian economic, political and legal environment, financial risk
management and the impact of general business and global economic
conditions.
Annex
to the press release about the unaudited financial results for the
first quarter of 2012
EBITDA
is a profit / loss from financial and economic activities during the
reporting period, before deduction of income tax on profits, income
and interest costs, depreciation and amortization. "Adjusted
EBITDA" is EBITDA for the reporting period before goodwill,
profit / loss from associates, profit / loss on foreign exchange
differences arising on financial performance and profit / loss on
operations with derivative financial instruments. Adjusted EBITDA is
operating profit before depreciation and amortization and financial
results of operations with derivative financial instruments. In
accordance with International Financial Reporting Standards ("IFRS"),
depreciation and amortization are included in cost structure, and in
the selling, general and administrative expenses. IFRS does not
require the disclosure and does not describe the calculation of
EBITDA and adjusted EBITDA, among other financial indicators, so they
can not substitute for net profit for the period when evaluating the
results of operations or the measure of cash provided by operating
activities when evaluating liquidity. Approach to the calculation of
EBITDA and adjusted EBITDA, as described earlier, may not coincide
with the approaches used by other companies, therefore, comparability
may be limited. We believe that EBITDA and adjusted EBITDA provide
useful information to investors because they are indicators of the
stability and efficiency of our business and our ability to fund
discretionary spending such as capital expenditures, the acquisition
of subsidiaries and other investments, as well as indicators of our
ability to incur and service debt. IFRS classifies depreciation and
amortization to operating costs, while in fact they are distributed
to the current period non-cash expenses for the acquisition or
creation of fixed assets, incurred in previous periods, and are not
affiliated with the movement of funds.
Calculation
of EBITDA for Q1 2012 - 2011
(Thousands of US$)
Q1 2012
|
Q1 2011
|
||
Net profit
|
354,154
|
173,854
|
|
Add:
|
|||
Income
tax expense
|
37,292
|
39,090
|
|
Interest income
|
(9,384)
|
(989)
|
|
Interest
expense
|
21,258
|
33,263
|
|
Depreciation
and amortisation
|
28,833
|
25,601
|
|
(Profit)/loss
of associates
|
160
|
(12,760)
|
|
Gain from change
in fair value of previously held interest
|
(153,458)
|
-
|
|
Foreign
exchange gain from financing activities
|
(72,120)
|
(72,477)
|
|
Adjusted EBITDA
|
206,735
|
185,582
|
|
