OREANDA-NEWS. Uralkali (LSE: URKA “the Company”), announces that the Board of Directors at a meeting on 28 August 2014 approved the Company's audited financial results for the six months ended 30 June 2014 prepared in accordance with IFRS and audited by PricewaterhouseCoopers Audit.

1H 2014 FINANCIAL HIGHLIGHTS1:

Revenue up 7% y-o-y to USD 1,726 million

Net revenue2 down 2% y-o-y to USD 1,316 million

EBITDA3 down 12% y-o-y to USD 767 million

EBITDA margin4 down to 58%

Net profit down 7% y-o-y to USD 370 million

Cash COGS down 12% to USD 51 per tonne

1H 2014 OPERATIONAL HIGHLIGHTS:

Production up 33% y-o-y to 6.0 million tonnes of potassium chloride (KCl)

Sales volumes up 42% y-o-y to 6.1 million tonnes of KCl

Average FCA export price down 30% to USD 220 per tonne of KCl

Strategic capacity development programme on track, with sinking started at Shaft No.2 of the Ust-Yayvinsky mine

CORPORATE HIGHLIGHTS:

Acquisition of a 25% stake in Equiplan Participacoes S.A. to enhance the Company's logistics infrastructure in Brazil

Election of the new Board of Directors following changes in the shareholder structure

Dividend payout ratio for 2013 approx. 50%

Agreement of a USD 450 million 5-year unsecured club facility with five international banks, with an interest rate of LIBOR plus 175 bps margin

SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD:

In July, the Company obtained a licence to develop the Romanovsky block of the Verkhnekamskoye deposit with estimated commercial reserves of 385 million tonnes of sylvinite ore

In July, an extraordinary general meeting of shareholders (EGM) took the decision to merge Uralkali-Technology into Uralkali and cancel all shares of Uralkali previously owned by Uralkali-Technology

In August, Uralkali signed an agreement with Promsvyazbank to open a USD 250 million unsecured credit line with a 10-year repayment period

Dmitry Osipov, Uralkali CEO, commented:

“In 1H 2014, the potash market demonstrated signs of recovery both in terms of volumes and price. Following sluggish buying activity in 2H 2013, customers sought to replenish depleted stocks. Tight availability of granular product boosted spot prices, while robust demand enabled Uralkali to achieve a high utilisation rate and generate solid revenues.

With the fundamentals for long-term potash demand remaining strong, Uralkali is well-positioned to maintain its market share in a competitive environment. The Company strives to constantly improve its operational and logistical efficiency and the Ust-Yayvinsky mine construction is progressing in line with the planned schedule, with the first ore extraction planned for 2020. In July, we were also able to obtain a licence to develop the Romanovsky block of the Verkhnekamskoye deposit at a very favourable price. This will secure our long-term resource sustainability.”