-
Operating profit increased to US $410 million, compared with US $288
million in H1 2011
-
Adjusted EBITDA grew to US $462 million, compared to US $337 million
in H1 2011
-
Net profit amounted to US $444 million, compared with US $266 million
in H1 2011
Moscow,
Russia - August 03, 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 fertilisers in Russia, announced its unaudited IFRS
financial results for the six months ended 30 June 2012.
Key
Financial Figures for H1 2012 and
2011 (US $ million)
|
|
H1
2012
|
H1
2011
|
Year-on-Year
Change, %
|
|
Revenue
|
1,261
|
1,035
|
22%
|
|
Gross profit
|
743
|
577
|
29%
|
|
Gross profit margin
|
59%
|
56%
|
5%
|
|
Operating profit
|
410
|
288
|
42%
|
|
Operating profit
margin
|
33%
|
28%
|
18%
|
|
Net profit
|
444
|
266
|
67%
|
|
Net profit margin
|
35%
|
26%
|
35%
|
|
Adjusted EBITDA
|
462
|
337
|
37%
|
|
Adjusted EBITDA
margin
|
37%
|
33%
|
12%
|
|
Net cash
generated from operating activities
|
342
|
194
|
76%
|
Dmitry
Konyaev, CEO of URALCHEM, OJSC (part of the Group), commented on the
results for the first half of 2012, “We achieved good financial
results in the first half of this year compared to the same period in
2011. EBITDA increased by more than one-third, sales grew by 18% and
reached 3 million tons. The good performance was driven by situation
on the urea and ammonium nitrate markets, which was favourable for
us, as well as acquisition of Minudobrenia OJSC and our own efforts
aimed at improving the efficiency of enterprises, the modernization
of production and our responsiveness to changing market needs.”
Financial
Results
Revenue
for the first half of 2012 grew to US $1,261 million, compared to US
$1,035 million in the first half of 2011. Operating profit amounted
to US $410 million, or 33% of the revenue, compared with the
operating profit of US $288 million, or 28% of the revenue in the
first half of 2011.
Net
profit for the first half of 2012 amounted to US $444 million,
compared to US $266 million in the first half of 2011.
During
the first half of 2012, adjusted EBITDA reached US $462 million,
compared to US $337 during the same period last year, a rise of 37%.
Adjusted EBITDA margin for the first half of 2012 comprised 37% of
revenue compared with 33% of revenue for the first half of 2011.
Markets
During
the second quarter of 2012 prices of mineral fertilisers and
semi-products showed significantly different dynamics. Ammonia prices
began to recover due to high demand and limited supply. During the
second quarter the price grew by $150/t and by the end of June it
reached $600/t FOB at the Yuzhny port.
Prices
for urea increased until mid-May and surpassed the peak figures of
2011. Since mid-May there was a significant decline in prices due to
low activity of buyers. In late June - early July, the urea market
began to show signs of recovery.
Prices
for ammonium nitrate repeated the dynamics of the urea market and
grew rapidly until mid-May. However, the second half of the quarter
was characterized by falling prices for the product, which was also
due to low purchasing activity.
The
global market of phosphate fertilisers was in the process of recovery
during the second quarter of 2012. Due to strong demand in Latin
America, spot prices recovered, despite the launch of Chinese
products on the market. Market participants are forecasting a stable
outlook for the third quarter of the year.
Sales
In
the first six months of 2012 the Group’s product sales grew by 18%
compared to the same period in 2011 and totalled 3 million tons. Due
to the acquisition of OJSC Minudobrenia, Perm, sales of urea and
ammonia increased significantly, by 117% and 61% respectively.
Sales
of Commercial Products of URALCHEM
Group in H1 2012-2011 (thousands of tons)
|
Name of Product
|
H1
2012
|
H1
2011
|
Year-on-Year Change, %
|
|
Ammonium nitrate and its derivatives
|
1,169
|
1,178
|
-1%
|
|
Urea
|
598
|
275
|
117%
|
|
Ammonia
|
353
|
219
|
61%
|
|
Phosphate based fertilisers |
282
|
289
|
-2%
|
|
Complex fertilisers |
293
|
319
|
-8%
|
|
Other chemicals, including ammonium nitrate for
industrial use
|
384
|
329
|
17%
|
|
Total
|
3,079
|
2,609
|
18%
|
Financial
Situation
Cash
generated from operating activities in the first half of 2012
amounted to US $342 million compared with US $194 million in the
first half of 2011.
On
30 June 2012, the Company’s net debt amounted to US $991 million.
Interest expenses in the first half of 2012 decreased by US $23
million or 36% compared to the same period last year.
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
fertilisers 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
fertilisers 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 fertilisers 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, Kirovo-Chepetsk, Kirov
region; Voskresensk Mineral Fertilisers, 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 half 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 H1 2012 - 2011 (thousands of US$)
|
|
H1
2012
|
H1
2011*
|
|
Net profit
|
444,405
|
266,339
|
|
Add:
|
|
|
|
Income tax
|
75,954
|
66,160
|
|
Interest income
|
(11,427)
|
(1,162)
|
|
Interest
expense
|
40,444
|
63,606
|
|
Depreciation
and amortisation
|
52,734
|
48,827
|
|
Loss/(profit)
of associates
|
190
|
(22,690)
|
|
Gain from
change in fair
value of previously held interest
|
(153,458)
|
-
|
|
Foreign
exchange loss/(gain) from financing
activities
|
13,584
|
(84,237)
|
|
EBITDA
|
462,426
|
336,843
|
*Financial
Statements for the first half of the year were restated following the
acquisition of OJSC Minudobrenia.
uralchem,
financial results, ifrs, ifrs financial results, fertilisers, revenue
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