OREANDA-NEWS. November 19, 2010.

 

Q3 2010

Q3 2009

Chng

9M 2010

9M 2009

Chng 

RUR bn

USD m

RUR bn

USD m

RUR bn

USD m

RUR bn

USD m

Revenue

24.3

792

18.8

599

 plus29%

69.7

2,305

55.2

1,701

 plus26%

EBITDA

6.3

207

3.1

100

 plus102%

19.4

640

13.5

414

 plus44%

Net profit

4.8

156

3.3

104

 plus46%

11.7

388

8.9

274

 plus32%

Cash from operations

6.0

197

3.4

108

 plus82%

17.2

567

13.0

400

 plus31%

 

30 September 2010

31 December 2009

Net Debt/EBITDA

1.59

2.21

Average RUR/USD exchange rate for periods: Q3 2010: 30.62; Q3 2009: 31.33; 9M 2010: 30.25; 9M 2009: 32.48

EuroChem is today publishing certain features of its consolidated financial performance during the first 9 months of 2010, several days in advance of the planned publication of its auditor-reviewed IFRS financial statements for this period. The company has taken this step in connection with the release of a marketing research document linked to the ongoing placement of Rouble-denominated bonds by EuroChem that contains references to these financial statements.

For the third quarter of 2010, EuroChem expects to report a consolidated IFRS net profit of RUR 4.8bn, an increase of 46% from RUR 3.3bn for Q3 2009. Consolidated revenues also increased 29% to RUR 24.3bn in Q3 2010 from RUR 18.8bn in Q3 2009. Net profit for the first nine months of 2010 amounted to RUR 11.7bn, up 32% from RUR 8.9bn in 9M 2009.  

EuroChem’s gross margin in Q3 2010 was 52% on gross profit of RUR 12.6bn, compared to a 43% / RUR 8.0bn result for Q3 2009.  EBITDA was RUR 6.3bn for the third quarter of 2010, increasing 102% vs. RUR 3.1bn in Q3 2009. The EBITDA margin for the period was 26%, compared to 17% for Q3 2009.

Fertilizer sales volumes in the third quarter of 2010 were flat vs. Q3 2009, with a moderate increase in phosphate volumes offset by a small decrease in nitrogen products. Combined nitrogen and phosphate sales volumes amounted to 1,898 thousand metric tonnes (KMT) (excl. iron ore and baddeleyite). Similarly, the company’s sales of iron ore in the third quarter were virtually unchanged at 1,549 KMT in Q3 2010 compared to 1,556 KMT in Q3 2009.

The Company expects strong financial performance to continue over Q4 2010 and Q1 2011 on demand-driven price strength in nitrogen and phosphate fertilizers against the background of tight supply.

The table below contains details of the Q3 2010 and 9 months’ 2010 performance of EuroChem which have been used in the marketing document expected to be released later today:

EuroChem: selected IFRS consolidated financials and ratios

 

9M2010

9M2009

Change

Revenue, RUR bn

69.7

55.2

 plus26%

Gross profit, RUR bn

34.8

24.3

 plus43%

Gross margin, %

49.9

44.0

 plus5.9 bps

EBITDA, RUR bn

19.4

13.5

 plus44%

EBITDA margin, %

27.8

24.4

 plus3 bps

Net profit, RUR bn

11.7

8.9

 plus32%

Net margin, %

16.8

16.1

 plus0.7 bps

Net cash – operating activities, RUR bn

17.2

13.0

 plus32%

Net cash – investing activities, RUR bn*

(13.1)*

(22.8)*

-42%

Net cash financing activities, RUR bn

(8.4)

(3.6)

 plus2.3х

Net decrease in cash and cash equivalents, RUR bn

(4.6)

(11.7)

 -61%

 

 30 Sept. 2010

31 Dec. 2009

Change

Total assets, RUR bn

136.4

128.8

 plus6%

Total equity, RUR bn

84.0

73.2

 plus15%

Total gross debt, RUR bn

42.4

47.8

-11%

Cash and cash equivalents, RUR bn**

6.7

11.4

-41%

Total gross debt/LTM***EBITDA, times

1.89

2.89

n/a

Total gross debt/Total assets

0.31

0.37

n/a

Total gross debt/Total equity

0.50

0.65

n/a

Net debt, RUR bn

35.9

36.5

-2%

Net debt/LTM***EBITDA, times

1.59

2.21

n/a

* Including net cash inflows of RUR 0.7bn (9M 2009: net cash outflows of RUR 9.7bn) arising from transactions related to the shares of K plusS AG (the purchase and sale of shares, dividends from the shares, proceeds from the sale of derivatives linked to the shares and movements in loan balances granted for the purposes of the shares purchase).

** Including current and non-current restricted cash.

*** Last twelve months.