OREANDA-NEWS. May 12, 2010. Metafrax has released FY2009 financials and 1Q2010. Unfortunately, the company does not disclose financials audited to IFRS; we therefore have focused on RAS financials.

Financial report for 2009

Revenue declined 31% y-o-y to RUB 5.5 billion; COGS slid 15% to RUB 4.4 billion and commercial expenses dwindled 35%. Operating income dropped 59% y-o-y to RUB 900 million. Operating income dropped 59% y - o - y to RUB 900 million . Net income came in at RUB 507 million, down 65% from 2008.

The marked worsening of the FY2009 financials on an annual basis was expected. The downturn is attributable to the average 31% fall in world methanol prices (FOB Rotterdam) in 2009, in comparison with 2008, and a decline in demand for methanol and derivative products. We estimate the FY2009 RAS financials from Metafrax as positive, given that the company has managed to keep its profit margins at acceptable levels amid the crisis.

Financial statement for 1Q2010

1Q revenue surged 67% y-o-y to RUB 1.8 billion. COGS jumped 62% to RUB 1.4 billion, as did commercial expenses, by 123% to RUB 209 million. Operating income soared 60% y-o-y to RUB 222 million. Net income shrank 45% y-o-y to RUB 141 million.

Growth of first-quarter revenue and operating income is linked to the recovery of prices and demand on the methanol market. World methanol prices (FOB Rotterdam) rocketed 116% y-o-y in 1Q2010 to EUR 252 /ton. Growth of Metafrax revenue fell short of the rise in global methanol prices, due to the base effect. In 1Q2009, the worst quarter for methanol produces in terms of demand and prices, Metafrax increased sales domestically, where prices and consumption levels were steadier than on external markets. Accordingly, the fall in revenue in 1Q2009 and its surge in 1Q2010 were flatter than they would have been had the company sold all its methanol on the global market.