OREANDA-NEWS. Uralkali (LSE: URKA, “the Company”), one of the world's largest potash producers, today published its audited financial results for the full year ended 31 December 2013 prepared in accordance with IFRS and audited by PricewaterhouseCoopers.

FY2013 OPERATIONAL HIGHLIGHTS:

Production up 10% y-o-y to 10 million tonnes of KCl

Sales volumes up 5% y-o-y to 9.9 million tonnes of KCl

Strategic capacity development programme on track, with the construction of the Ust-Yayvinsky mine progressing

FY2013 FINANCIAL HIGHLIGHTS1:

Net revenue2 down 20% y-o-y to USD 2,665 million

EBITDA3 down 31% y-o-y to USD 1,634 million

EBITDA margin4 at 61%

Net profit down 58% y-o-y to USD 666 million

Average FCA export price down 28% y-o-y to USD 268 per tonne of KCl

Cash COGS was kept at USD 58 per tonne

2013 CORPORATE HIGHLIGHTS:

Buyback programme from 13 November 2012 to 13 November 2013 completed

Dividend payout ratio for 2012 and H1 2013 over 50% of IFRS net profit as per Company policy

Debut Eurobond issue, placed at an attractive coupon of 3.723%

Revenue maximisation strategy adopted and exports streamlined through Uralkali Trading SA

Shareholder structure changes; new strategic shareholders are ONEXIM Group, Uralchem and Chengdong Investment Corporation (CIC)

Dmitry Osipov appointed as new CEO

Agreement signed to create a potash distribution joint venture between Uralkali Trading SA and the Federal Land Development Authority of Malaysia, enhancing our position in the fast-growing Southeast Asia market

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD:

25% stake acquired in Equiplan Participacoes S.A., the main shareholder in TerminaisPortuarios da Ponta do Felix S.A. port terminal in the city of Antonina, enhancing our logistics infrastructure in Brazil

New Board of Directors elected, reflecting the changes in shareholder structure

Dmitry Osipov, Uralkali CEO, commented:

"I joined Uralkali at the end of a turbulent year for the global potash market, a time when the Company needed to reinforce its position as an industry leader. I would like to take this opportunity to thank the team for their professionalism, flexibility and resilience, which enabled us to address all market challenges. I look forward to working with the Board of Directors and employees to deliver the next phase of the Company's growth in the interests of all shareholders.

Uralkali's adherence to a rigid price-over-volume strategy in H1 2013 resulted in a significant decrease in the Company's market share, as other producers sought to gain market share through aggressive pricing. This had a negative impact on both the Company's operational and financial results; these dynamics were not sustainable for the Company and did not reflect the strengths of the Company's assets. The management and the Board carried out an extensive analysis of the sales strategy and adjusted it in July 2013 to increase the Company's flexibility to respond to market dynamics. As a result, we saw some improvement in the Company's results and the market situation in H2 2013 and expect to build on this momentum in 2014.”