URALCHEM, OJSC Reports IFRS Financial Results for the First Nine Months of 2013

Despite the difficult market conditions, the company maintained its revenues at the level of 2012. Thanks to its chosen strategy, URALCHEM has continued to maintain a leading position in the industry in terms of margins, with the EBITDA margin at 32%.

URALCHEM

Moscow, Russia (December 11, 2013)

– Revenue increased to 56.26 bln RUB, compared to 55.96 bln RUB in the first nine months of 2012.
– Operating profit amounted to 14.63 bln RUB, compared with 17.09 bln RUB in the first nine months of 2012.
– Adjusted EBITDA comprised 17.32 bln RUB, compared to 19.55 bln RUB in the first nine months of 2012.

URALCHEM, OJSC (hereinafter URALCHEM Holding or the Company), the Russian holding company of the URALCHEM Group, one of the largest producers of nitrogen and phosphate fertilizers in Russia, announced its unaudited IFRS financial results for the first nine months of 2013*.

Dmitry Konyaev, CEO of URALCHEM, OJSC, commented on the Company’s results for the first nine months of 2013, “In the second half of 2013 the global market situation took a downward turn for fertilizer producers. Despite the difficult market conditions, URALCHEM maintained its revenues at the level of 2012. The Company is one of the leaders in the nitrogen segment in terms of output of ammonia per production unit. It is actively upgrading facilities, seeking to reduce costs and developing production of high-margin niche products. Thanks to its chosen strategy, URALCHEM has continued to maintain a leading position in terms of margins, with the EBITDA margin at 32%. The Company has maintained its financial stability together with its ability to develop strategic operations, as confirmed, among other things, by successive improvements of loan terms provided by banks.”

Financial Results

Revenue for the first nine months of 2013 grew to 56.26 bln RUB, compared to 55.96 bln RUB in the first nine months of 2012. Operating profit amounted 14.63 bln RUB, or 27% of revenue, compared with the operating profit of 17.09 bln RUB, or 32% of revenue, in the first nine months of 2012.

During the first nine months of 2013, adjusted EBITDA reached 17.32 bln RUB, compared to 19.78 bln RUB in the first nine months of 2012, a decrease of 12%.

The adjusted EBITDA margin for the first nine months of 2013 comprised 32% of revenue compared with 37% of revenue for the same period in 2012.

Markets

From the beginning of the year, there was a decrease in demand for ammonia from the industrial segment in East Asia and the producers of phosphate fertilizers in India and North Africa. Demand in the US decreased because of the late start of planting. Partially the market was offset by the decrease in production in Egypt, Trinidad and Saudi Arabia. Recovery began in early August. There was a decline in exports from Ukrainian enterprises, and on the other hand, lower prices provided for growing interest in procurement. Average quotes for ammonia in January-September 2013 amounted to $498 / ton, which is only 4% lower than in the same period in 2012 (FOB Yuzhny Port).

In early 2013, high seasonal demand in Europe and the United States, limited supply from Egypt, and low initial stock in the European market resulted in increased prices for urea. However, in mid-February, prices began to decline, reducing further until the end of the first half of the year. Importing countries were postponing purchases in anticipation of lower prices, while Chinese exporters were actively accumulating stock expecting the “export window”. In the 2nd quarter there was a decrease in production in regions with high costs, namely in Romania and Ukraine. Amid rising purchases from India, Turkey and Latin America, there was a short period of stabilization in June. However, after then, prices continued to decline because of massive Chinese exports. Average quotes for urea in January-September 2013 amounted to $339 / ton, which is 17% lower than in the same period a year earlier (FOB The Baltic Sea).

Steady growth in quotations for ammonium nitrate at the beginning of the year was replaced by a fall in mid-March. In late May, prices stabilized, helped by turnarounds at factories in the CIS. By the end of the 2nd quarter, prices in the CIS received support from the industrial segment. During January-September 2013 quotes for ammonium nitrate averaged $291 / ton, which is 4.6 % lower than a year earlier (FOB, The Baltic Sea). Starting from late September, prices for ammonium nitrate began to recover due to reduced exports from Ukraine, as well as to the beginning of the purchase season in the domestic market of the CIS.

In the phosphate fertilizers segment there was a global decline in prices due to a lack of current demand. The main reason came from India, where high levels of stock, reduction of state subsidies and depreciation of the rupee against the dollar led to a significant reduction in imports. Importers in other regions changed their procurement tactics to just satisfy the current demand, playing on the falling market. Average DAP/MAP quotes for the three quarters of 2013 fell by 14.7 % compared with the previous year, reaching $481 / ton (FOB, The Baltic Sea). Low market activity is expected until the end of the year and in the first quarter of 2014.

Financial Situation

Cash generated from operating activities in the first nine months of 2013 amounted to 13.14 bln RUB, compared to 14.71 bln RUB in the same period of 2012.

As at 30 September 2013, the Company’s net debt amounted to 23.531 bln RUB. The weighted average interest rate of the loan portfolio in the first nine months of 2013 equalled 4.5% annually compared to 5.8% annually during the same period in 2012.

For more information, please visit the Company web site http://www.uralchem.com or use the following contact information:

Public Relations Department
URALCHEM, OJSC
Tel: +7 (495) 721 89 89
Email: pr@uralchem.com
Web: http://www.uralchem.com

URALCHEM is one of the largest producers of nitrogen and phosphate fertilizers in Russia and the CIS with production capacities of over 2.5 million tonnes of ammonium nitrate, 2.2 million tonnes of ammonia, 0.8 million tonnes of MAP and DAP, 0.8 million tonnes of complex fertilizers and 0.5 million tonnes of urea. URALCHEM is the second largest ammonium nitrate producer in the world and number one in Russia. URALCHEM’s key production assets include Kirovo-Chepetsk Chemical Works, OJSC in Kirovo-Chepetsk, Kirov region; Azot, OJSC in Berezniki, Perm region; Voskresensk Mineral Fertilizers, OJSC in Voskresensk, Moscow region.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of URALCHEM. We wish to caution you that these statements are only predictions. We do not intend to update these statements and our actual results may differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, financial risk management and the impact of general business and global economic conditions.

URALCHEM and Stamicarbon will develop a New Technology for Urea Production

URALCHEM signed a joint technology development agreement for the synthesis of urea with Stamicarbon, the world’s top developer and licensor of urea processes.

URALCHEM

Moscow, Russia (December 2, 2013) — URALCHEM, a leading Russian producer of nitrogen fertilizers, signed a joint technology development agreement for the synthesis of urea with Stamicarbon, the world’s top developer and licensor of urea processes.

The agreement should result in the creation of a new technology that will be available for commercial use globally. It is being built on both Stamicarbon’s intellectual property and URALCHEM’s research cooperation with the Moscow State University Department of Chemistry. URALCHEM has been working with the MSU Dept. of Chemistry on the concept of 100% CO2 conversion since 2008. The new technology will allow producing higher quality urea with less capital expenditure.

Within this joint project, URALCHEM will build, at its Perm Mineral Fertilizers site, a pilot unit designed by Stamicarbon, using the new technology. Subject to the positive evaluation of the pilot plant operations, Stamicarbon will proceed to the basic design of a commercial scale plant.

“This is one of those unique examples in modern Russian history in which a prominent western engineering company utilizes scientific findings of Russian fabricators and academic institutions”, noted Valeriy Lunin, Dean of the Moscow State University Department of Chemistry, member of the Russian Academy of Sciences.

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PR department
URALCHEM, OJSC
Tel: +7 (495) 721 89 89
Email: pr@uralchem.com
Web: http://www.uralchem.com

URALCHEM, OJSC is one of the largest producers of nitrogen and phosphate fertilisers in Russia and the CIS with production capacities of over 2.5 million tonnes of ammonium nitrate, 2.8 million tonnes of ammonia, 0.8 million tonnes of MAP and DAP, 0.8 million tonnes of complex fertilisers and 1.2 million tonnes of urea. URALCHEM, OJSC is the second largest ammonium nitrate producer in the world and number one in Russia, the second largest producer of nitrogen fertilizers in Russia. URALCHEM, OJSC is the world’s #2 and Russia’s leading ammonium nitrate producer.

Stamicarbon B.V., the licensing and IP Center of Maire Tecnimont, is the global market leader in licensing of urea technology and services with more than 50% market share in synthesis and 32% market share in urea granulation technology. Stamicarbon has more than 65 years’ experience in licensing its urea technology and services, delivering optimum environmental performance, safety, reliability and productivity at the lowest investment level. Over 260 urea plants are using its technology. In addition, it has completed over 90 revamp projects in Stamicarbon and non-Stamicarbon plants. Since 1947, Stamicarbon has been the world’s leading authority and innovator in the field of urea in close co-operation with research institutes, suppliers and customers. Stamicarbon has offices in Sittard (The Netherlands), Beijing (China) and Moscow (Russia).

The Chemistry Department of the Moscow State University is a world-known center for Chemistry education. Chemistry education at the University started from 1755, the year it was founded. The Department of Chemistry includes 17 university chairs, 83 laboratories. 1048 students and 283 postgraduates, that study at the Department. 11 Full members of the Russian Academy of Sciences, 4 corresponding members and 202 professors holding PhD and Doctoral Degrees in Chemistry are now preparing students to become high class specialists in modern Chemistry.

URALCHEM has obtained a Syndicated Loan

The URALCHEM group, a leading Russian producer of mineral fertilizers, has refinanced part of its loan portfolio by procuring a 5-year unsecured syndicated loan.

URALCHEM

Moscow, Russia (November 21, 2013) — The URALCHEM group, a leading Russian producer of mineral fertilizers, has refinanced part of its loan portfolio by procuring a 5-year unsecured syndicated loan. The proceeds of the loan have been used to refinance the current syndicated loan deal, concluded in December 2012, under which the Group used assignment of rights on its export contracts as security interest for the loan.

The syndicated loan was obtained on 18 November 2013 from a pool of leading international and Russian banks. Nordea Bank AB (publ), HSBC Bank PLC, Raiffeisenbank and and Rosbank (Société Générale Group) were Mandated Lead Arrangers. Within the framework of the deal, OJSC Nordea Bank acted as Documentation Agent and Nordea Bank AB (publ) acted as Facility Agent. The deal was closed within a very short time, only four weeks from the date of the official invitation to the banks.

The plant in Kirovo-Chepetsk acted as the borrowing party from the URALCHEM Group. URALCHEM OJSC, the plant in Voskresensk, the plant in Perm, SIA URALCHEM Trading in Riga and URALCHEM Trading House were the guarantors of the loan.

The amount of the loan in Euros is the equivalent of US $200 million. The interest rate is Euribor 3m + 2.5%. The loan documentation made provision for an option of a drawdown in Euros, which the company used. The loan period is 5 years with a grace period of 2 years. This was the debut unsecured syndicated loan for the Group, and it made it possible to release secured assets on the assignment of rights on export contracts. The new deal has allowed for reduction of the interest rate on the loan by more than 1.5%, as well as the increase of the average time frame for repayment of the loan.

Dmitry Konyaev, CEO of URALCHEM OJSC commented, “Our mutually beneficial cooperation with the leading banks that form the syndicate has been going on for years. The terms of the new deal and the efficiency of its closing show the high confidence that the banks have in the Group and the sustainability of its financial position. We are grateful to our creditors and appreciate our partnership with them.”

PR department
URALCHEM, OJSC
Tel: +7 (495) 721 89 89
Email: pr@uralchem.com
Web: http://www.uralchem.com

URALCHEM, OJSC is one of the largest producers of nitrogen and phosphate fertilisers in Russia and the CIS with production capacities of over 2.5 million tonnes of ammonium nitrate, 2.8 million tonnes of ammonia, 0.8 million tonnes of MAP and DAP, 0.8 million tonnes of complex fertilisers and 1.2 million tonnes of urea. URALCHEM, OJSC is the second largest ammonium nitrate producer in the world and number one in Russia, the second largest producer of nitrogen fertilisers in Russia. Key production assets of URALCHEM, OJSC include Azot Branch of URALCHEM, OJSC in Berezniki, Perm Region; OJSC Minudobrenia, Perm; MFP Kirovo-Chepetsk Chemical Works, OJSC Branch in Kirovo-Chepetsk, Kirov region; Voskresensk Mineral Fertilisers, OJSC in Voskresensk, Moscow region.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of URALCHEM. We wish to caution you that these statements are only predictions. We do not intend to update these statements and our actual results may differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, financial risk management and the impact of general business and global economic conditions.

URALCHEM Manufactured 4.49 Million Tons of Products in January-September 2013

Production from all enterprises of the URALCHEM Group during the first nine months of 2013 amounted to 4.49 tons. This is a 2% increase compared with the same period last year.

URALCHEM

Moscow, Russia (October 31, 2013) — Production from all enterprises of the URALCHEM Group during the first nine months of 2013 amounted to 4.49 tons. This is a 2% increase compared with the same period last year.

The production of ammonium nitrate and its derivatives amounted to 2.03 million tons, up 7% over the same period last year. The output of complex fertilizers increased by 1%, to 468.4 thousand tons. The production of commodity ammonia decreased by 3%, to 562.6 thousand tons. Urea production decreased to 851.4 thousand tons, which is 1% less than in January-September 2012. Production of phosphate fertilizers (MAP / DAP) decreased by 5%, to 333.3 thousand tons.

“On the whole, URALCHEM’s enterprises showed stable performance, increasing production through the upgrade of its units and increasing their efficiency. URALCHEM took the market situation fully into account and continued to ramp up production in its key nitrogen segment, placing emphasis on the most popular products,” said Dmitry Konyaev, CEO of URALCHEM, OJSC.

In the third quarter of 2013, the situation in the global fertilizer market was unfavourable for producers. The market for phosphate fertilizers suffered an especially significant drop in demand and prices. At the same time, the situation in nitrogen market is more stable.

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PR department
URALCHEM, OJSC
Tel: +7 (495) 721 89 89
E-Mail: pr@uralchem.com
Web: http://www.uralchem.com

URALCHEM, OJSC is one of the largest producers of nitrogen and phosphate fertilisers in Russia and the CIS with production capacities of over 2.5 million tonnes of ammonium nitrate, 2.8 million tonnes of ammonia, 0.8 million tonnes of MAP and DAP, 0.8 million tonnes of complex fertilisers and 1.2 million tonnes of urea. URALCHEM, OJSC is the second largest ammonium nitrate producer in the world and number one in Russia, the second largest producer of nitrogen fertilisers in Russia. Key production assets of URALCHEM, OJSC include Azot Branch of URALCHEM, OJSC in Berezniki, Perm Region; OJSC Minudobrenia, Perm; MFP Kirovo-Chepetsk Chemical Works, OJSC Branch in Kirovo-Chepetsk, Kirov region; Voskresensk Mineral Fertilisers, OJSC in Voskresensk, Moscow region.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of URALCHEM. We wish to caution you that these statements are only predictions. We do not intend to update these statements and our actual results may differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, financial risk management and the impact of general business and global economic conditions.

URALCHEM Joins as New Member of International Plant Nutrition Institute

URALCHEM joined as a member company of the Inter-national Plant Nutrition Institute (IPNI) at the Board of IPNI Director’s Meeting held on September 24 in Montreal, Quebec, Canada.

URALCHEM

Moscow, Russia (September 27, 2013) — URALCHEM joined as a member company of the Inter-national Plant Nutrition Institute (IPNI) at the Board of IPNI Director’s Meeting held on September 24 in Montreal, Quebec, Canada. Mr. Dmitry Konyaev, CEO and Tatiana Rozarenova, Head of the Client and Regu-latory Relations Division were elected to represent URALCHEM as members of the Board.

“Our membership welcomes the decision of URALCHEM to join IPNI and we are honored and encouraged by this extension of our primary support base,” said IPNI President Dr. Terry L. Roberts. “The addition of new members directly impacts IPNI’s scientific and educational programs that are designed to contribute to the advancement of agronomic science, world food security and environmental protection.”

“URALCHEM is an innovative-minded company, investing actively in the R&D field. We are therefore pleased to become a member of a leading scientific organization that brings forward agro-chemical science. Combining our research efforts will improve efficient solutions for the responsible manufacturing, as well as for use of fertilizers in order to meet the growing global demand for agricultural products”, said Dmitry Konyaev.

IPNI membership is another good indication of the URALCHEM’s commitment to being a responsible producer, along with participation in International Responsible Care Programme, supervised by UNO, registering chemical substances with the European Chemicals Agency and getting certification with Fertiliser Industry Assurance Scheme (FIAS) in the UK.

The International Plant Nutrition Institute (IPNI) is a global organization dedicated to research and promotion of information about the importance of scientific use of fertilizers for plant nutrition. Members of IPNI are composed of companies that are large producers of one or more of the major plant nutrients. International and national associations of fertilizer manufacturers and leading global agrochemical research centres are affiliate members of IPNI.

PR department
URALCHEM, OJSC
Tel: +7 (495) 721 89 89
E-Mail: pr@uralchem.com
Web: http://www.uralchem.com

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URALCHEM, OJSC is one of the largest producers of nitrogen and phosphate fertilisers in Russia and the CIS with production capacities of over 2.5 million tonnes of ammonium nitrate, 2.8 million tonnes of ammonia, 0.8 million tonnes of MAP and DAP, 0.8 million tonnes of complex fertilisers and 1.2 million tonnes of urea. URALCHEM, OJSC is the second largest ammonium nitrate producer in the world and number one in Russia, the second largest producer of nitrogen fertilisers in Russia. Key production assets of URALCHEM, OJSC include Azot Branch of URALCHEM, OJSC in Berezniki, Perm Region; OJSC Minudobrenia, Perm; MFP Kirovo-Chepetsk Chemical Works, OJSC Branch in Kirovo-Chepetsk, Kirov region; Voskresensk Mineral Fertilisers, OJSC in Voskresensk, Moscow region.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of URALCHEM. We wish to caution you that these statements are only predictions. We do not intend to update these statements and our actual results may differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, financial risk management and the impact of general business and global economic conditions.

URALCHEM Adds 300 Units to its Fleet of Rail Cars

URALCHEM OJSC is increasing by 300 its own fleet rail cars for the transportation of mineral fertilizers and liquid ammonia.

URALCHEM

Moscow, Russia (September 19, 2013) — URALCHEM OJSC is increasing by 300 its own fleet rail cars for the transportation of mineral fertilizers and liquid ammonia. URALCHEM-TRANS (part of the URALCHEM group) will operate the new cars, along with the rest of URALCHEM’s rolling stock. The cars will be acquired through capital lease agreements, with the participation RB Leasing, LLC. The transaction value exceeds 700 million roubles.

Of the 300 cars purchased, 200 mineral wagons and 100 tank cars are manufactured in Russia. All the cars will be transferred to URALCHEM-TRANS in September and October 2013 and will be used to replace an existing fleet that is being retired. Since the end of 2012, URALCHEM-TRANS’ rolling stock has increased by 500 new cars. Today, the total number of cars under the management of URALCHEM-TRANS is around 8.5 thousand units.

The Director of URALCHEM-TRANS, Vsevolod Kovshov commented: “The planned renovation and expansion of the fleet is one of our key areas of work to ensure the safety of the logistics of the company. The new deal allows us to increase the share of our own rolling stock in the fleet in accordance with the strategic objectives of the Group. The new rolling stock will be used to replace leased, obsolete and worn out cars.”

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PR department
URALCHEM, OJSC
Tel: +7 (495) 721 89 89
E-Mail: pr@uralchem.com
Web: http://www.uralchem.com

URALCHEM, OJSC is one of the largest producers of nitrogen and phosphate fertilisers in Russia and the CIS with production capacities of over 2.5 million tonnes of ammonium nitrate, 2.8 million tonnes of ammonia, 0.8 million tonnes of MAP and DAP, 0.8 million tonnes of complex fertilisers and 1.2 million tonnes of urea. URALCHEM, OJSC is the second largest ammonium nitrate producer in the world and number one in Russia, the second largest producer of nitrogen fertilisers in Russia. Key production assets of URALCHEM, OJSC include Azot Branch of URALCHEM, OJSC in Berezniki, Perm Region; OJSC Minudobrenia, Perm; MFP Kirovo-Chepetsk Chemical Works, OJSC Branch in Kirovo-Chepetsk, Kirov region; Voskresensk Mineral Fertilisers, OJSC in Voskresensk, Moscow region.

Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of URALCHEM. We wish to caution you that these statements are only predictions. We do not intend to update these statements and our actual results may differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, financial risk management and the impact of general business and global economic conditions.

URALCHEM HOLDING P.L.C. Reports IFRS Financial Results for the First Six Months of 2013

URALCHEM HOLDING P.L.C. (hereinafter URALCHEM Holding or the Company), a Cypriot holding company of the URALCHEM Group (hereinafter the Group), one of the largest producers of nitrogen and phosphate fertilizers in Russia, announced its unaudited IFRS financial results for the first six months of 2013.

URALCHEM

Moscow, Russia (August 19, 2013)

– Revenue increased to US $1,292 million, compared to US $1,261 million in H1 2012.
– Operating profit amounted to US $394 million, compared with US $410 million in H1 2012.
– Adjusted EBITDA comprised US $452 million, compared to US $462 million in H1 2012.
– Net profit amounted to US $253 million, compared with US $444 million in H1 2012*.

URALCHEM HOLDING P.L.C. (hereinafter URALCHEM Holding or the Company), a Cypriot holding company of the URALCHEM Group (hereinafter the Group), one of the largest producers of nitrogen and phosphate fertilizers in Russia, announced its unaudited IFRS financial results for the first six months of 2013.

Dmitry Konyaev, CEO of URALCHEM, OJSC (the Russian holding company of the Group), commented on the Company’s results in the first half of 2013, “The overall global market situation has been less favourable for fertilizer producers in 2013 compared to last year. This trend is very likely to continue in the second half of this year. Along with the continuing rise in the cost of raw materials, this situation creates conditions for the further decline in the financial performance of the leading manufacturers of mineral fertilizers. Thanks to its strategy, URALCHEM is continuing to hold a leading position in a number of financial and operational indicators. In the first half of 2013, URALCHEM maintained its sales volume at the level of the first half of 2012 and increased revenues by 2%. In addition, as a result of early repayment of loans to the amount of US $300 million we were able to reduce the Company’s debt to a record low of US $787 million, as well as to withdraw from collateral all of the Group’s property. Net debt currently amounts to US $676 million”.

Financial Results

Revenue for the first six months of 2013 grew to US $1,292 million, compared to US $1,261 million last year. Operating profit amounted to US $394 million, or 31% of the revenue, compared with the operating profit of US $410 million, or 32% of the revenue, in the first half of 2012. Net profit amounted to US $253 million, compared to US $444 million in the first six months of 2012.

During the first half of 2013, adjusted EBITDA reached US $452 million, compared to US $462 million in the first half of the year before, a decrease by 2%. The adjusted EBITDA margin for the first six months of 2013 comprised 35% of revenue compared with 37% of revenue for the same period in 2012.

The main difference in the dynamics of the net profit compared to the other results is due to the fact that the results in 2012 included the revaluation of the Company’s share in Minudobrenia, Perm.

Markets

During the first half of the year, the price of ammonia was declining. The main factor determining the price dynamics was the lack of demand in the agricultural and the industrial segments. Lower demand in the agricultural segment was due to the late start of the sowing season in the Northern Hemisphere. Lack of demand in the industrial segment was caused by reduced production of phosphate fertilizers in North Africa and India.

Urea prices showed significant growth in the beginning of the year due to active procurement in Europe and North America, which coincided with a limited supply of product from Egypt, forcing buyers to look for alternative sources. However, from mid-February to the end of June prices have been decreasing, mainly due to lack of demand. In Europe and the US slowdown in demand was attributed to the late start of the sowing season. Latin American importers were putting off purchases, monitoring the changes in the situation. Additional pressure on prices was created by the accumulation of large stocks of products at Chinese ports, in anticipation of the period of low export duties, which began on 1 July.

During January and February there was a steady growth of quotations for ammonium nitrate. In mid-March, due to the pressure from urea prices, the trend changed. By mid-May, prices for ammonium nitrate decreased by $100/t, compared with the maximum prices registered in the middle of the first quarter. At the end of May, prices stabilized with repair works carried out at that time at CIS plants being one of the factors that contributed to this stabilization. By the end of the second quarter, prices in the CIS were supported by the industrial segment.

Until the middle of the first quarter, global decline in prices for phosphate fertilizers continued due to the lack of current demand. The decrease of production by major suppliers together with increased demand in Latin America stabilized prices. At the same time, Latin America remained the single largest source of demand. Indian buyers refrained from transactions. Since the beginning of the second quarter the decline was caused by the reduction of subsidies in India, the delays of purchases in the US domestic market due to the weather conditions, devaluation of currencies of major importing countries, such as Brazil and India, and policy of procurements to the current needs adopted by importers in other regions lead to oversupply in market and decrease in prices.

Production and sales

Volume of production by the Group’s plants increased by 1%, sales of commercial products of the Group remained virtually unchanged.

Financial Situation

Cash generated from operating activities in the first half of 2013 amounted to US $320 million, compared to US $342 million in the same period of 2012.

As at 30 June 2013, the Company’s net debt amounted to US $676 million. The weighted average interest rate of the loan portfolio in the first six months of 2013 equalled 4.7% annually compared to 5.2% annually during the same period in 2012.

For more information, please visit the Company web site http://www.uralchem.com or use the following contact information:

PR department
URALCHEM, OJSC
Tel: +7 (495) 721 89 89
E-Mail: pr@uralchem.com

URALCHEM HOLDING P.L.C. is a holding company of the URALCHEM Group, which includes four fertilizer manufacturing facilities in Russia. URALCHEM Group is one of the largest producers of nitrogen and phosphate fertilizers in Russia and the CIS with production capacities of over 2.5 million tons of ammonium nitrate, 2.8 million tons of ammonia, 0.8 million tons of MAP and DAP, 0.8 million tons of complex fertilizers and 1.2 million tons of urea per year. URALCHEM Group is the second largest ammonium nitrate producer in the world and number one in Russia, the second largest producer of nitrogen fertilizers in Russia. URALCHEM Group’s key production assets include Azot Branch of URALCHEM, OJSC in Berezniki, Perm Region; OJSC Minudobrenia, Perm; MFP Kirovo-Chepetsk Chemical Works, OJSC Branch in Kirovo-Chepetsk, Kirov region; Voskresensk Mineral Fertilizers, OJSC in Voskresensk, Moscow region.