Potash fertilizer company, Uralkali, has posted a FY 2009 net profit of 9.1 billion Roubles under IFRS.
The bottom line is down 59% year on year, with FY EBITDA down 60% to 16.4 billion Roubles, as revenues slumped 46% to 33.8 billion Roubles.
The company attributed the downturn in net profit to the global economic downturn which had prompted farmers in key markets to reduce or delay fertilizer application, a move which hit sales volumes and prices, with key buyers also delaying payment on contracted volumes. It said that it had managed to limit declines in market share, in the face of aggressive pricing by smaller producers, with Uralkali President, Denis Morozov adding that the company was well positioned in a rebounding market.
“Overall, 2009 was one of the most challenging years in the history of the potash industry. The global economic downturn forced farmers to reduce fertilizer application, which adversely affected Uralkali’s financial results. However, demand for potash started to pick up in late 2009, prompted by the recovery of the agricultural sector as well as the restoration of price certainty in the potash market. We are confident that this upward trend will continue in 2010 and drive an increase in prices and sales volumes.”