EuroChem Reports Audited IFRS Financial Information for 2010

OREANDA-NEWS. March 2, 2011. EuroChem today reported a consolidated IFRS net profit for the year ended 31 December 2010 of RUB 20.1bn, up 81% from RUB 11.1bn in 2009. Consolidated revenues increased 33% to RUB 97.8bn for 2010 from RUB 73.6bn for the previous year. EBITDA for the full year 2010 was RUB 29.9bn, increasing 81% vs. RUB 16.5bn in 2009. The EBITDA margin for the period was 31%, compared to 22% for 2009.

Due to favorable trends in product prices, revenue and EBITDA in Q4 accounted for 29% and 35% of the full-year result. Net profit for Q4 2010 amounted to RUB 8.3bn, up 285% from RUB 2.2bn in Q4 2009.

Fertilizer sales volumes for 2010 were up 8% year-on-year, with combined nitrogen and phosphate volumes at 8,086 thousand tonnes (KMT) (excl. iron ore and baddeleyite). Iron ore and baddeleyite sales volumes increased 10% to 6,124 KMT in 2010 compared with 5,584 KMT for the year 2009.

CEO Dmitry Strezhnev said: “Our results not only reflect the rising prices for our products but also our past investments in the business, which today allow us to produce an increasing proportion of higher-margin products. Fertilizers remain a key part of the global food supply system, the security of which for the global well-being is hard to overestimate – as recent events around the world have shown. We remain committed to increasing our production capacities in response to the long-term growth in demand for our products regardless of economic cycles such as the one we just went through. We have continued to deliver on our strategy, achieving important milestones on our priority investment projects, including additional granulated urea production, heat recapture systems to generate electricity from heat produced during the production stage, as well as our potash projects, where active shaft sinking started at our Gremyachinskoye deposit.”

Average RUB/USD exchange rate for periods: Q4 2010: 30.71; Q4 2009: 29.47; 2010: 30.37; 2009: 31.72

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