Bloomberg News

Uralkali’s Third-Quarter Net Revenue Reached $1.04 Billion

December 07, 2011

(Updates with shares in last paragraph.)

Dec. 7 (Bloomberg) -- OAO Uralkali, Russia’s biggest fertilizer maker by value, reported third-quarter net revenue of $1.04 billion after taking over rival OAO Silvinit.

The domestic at-the-mine price averaged $219 a metric ton in the period. Potash for export was sold on average at $376 a ton excluding transportation costs, the company said today in a statement, without providing comparisons for the year earlier.

Global potash demand and prices aren’t expected to decline below current levels next year, Uralkali said after raising prices for Brazil and Southeast Asia. Chinese and U.S. demand may increase, the company said. Brazilian customers, “cautious about accepting the new price” of $580 a ton, have delayed purchases until the first quarter, according to the statement.

European farmers may face borrowing difficulties because of the credit crisis and the market will probably remain “at the current level” until the economy improves, Uralkali said.

The company declined 0.8 percent to 226.29 rubles by 6:38 p.m. in Moscow trading, while Uralkali’s depositary receipts dropped 1.1 percent to $36.10 in London.

--Editor: Tony Barrett, Alex Devine

To contact the reporter on this story: Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: Torrey Clark at tclark8@bloomberg.net


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