EuroChem posts 2Q 2011 net profit of 9.5 billion roubles

Russian mineral fertilizers producer, EuroChem, has posted a 2Q 2011 net profit of 9.5 billion roubles under IFRS.

The net results skyrocketed 283% year on year from 2.5 billion roubles posted for 2Q 2010, with  EBITDA rising  54% year on year to 11.9 billion roubles, on the back of a 30% year on year rise to 30.9 billion roubles.The Company said, strong financials in Q2 2011 were mostly due to the increased sale prices, coupled with a focus on value-added products. EuroChem CEO, Dmitry Strezhnev, said the strong 2Q figures paved the way for stronger figures ahead with demand rising.“We had another quarter of strong demand for fertilizers which helped prices for our products increase and compensated for the seasonal drop in demand. While the economic growth prospects globally become less certain, we feel that – for as long as a severe disruption in the financial markets is avoided – the fertilizer industry should continue to benefit from the structural changes in the supply-demand balance. Against this background, we are comfortable with the industry’s prospects and continue to advance our investment projects in potash, nitrogen, phosphates, logistics, and other raw materials.”