Number one in the Polish chemical market

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Last year will go down in history of our company, thanks to record results we have achieved. Consolidated net profit amounted to PLN 600 mln, while the unit gain amounted to PLN 596 million. We have succeeded despite of the production costs increase. This is the tenth consecutive year in which our plants end up in the black.

THE INCREASE IN PRICES

The price and sales volume increase of virtually all of our key products affected such a good result. This is mainly urea, whose sales increased by 98 per cent in Agro section and by 58 per cent in Chemistry section. This was all made possible by last year’s completion of the: Oxygen – Ammonia – Urea line modernization. What is more, joining our group by GZNF “Fosfory” and “Azoty-Adipol” PLC and expanding our commercial offer contributed to higher sales in the last financial year.

GAS PRICE INCREASE

At the same time, when we look at our results it should be noted that in the past financial year, the gas price was increased twice. Consequently, its contribution in our costs increased from 51 to 57 percent y/y. The first increase was last summer and it amounted 11 per cent, and then in the spring we had to come to terms with another increase, this time by 16 percent. This situation demonstrated the importance of the efficiency of our ammonia plant. Now, our average rate of gas consumption per ton of ammonia is 845 m3 while around the world it is 1 100 m3. This reduced the costs associated with the increases.

FERTILIZERS SALE

Sales in agro section, that is fertilizers sales contributed to the good results of our company. The share of this segment in our Group’s revenue increased from 54 percent to 63 percent y/y. Approximately, two thirds of revenues from the sale of agro section, is in the domestic market. High income was associated to increase in prices across the assortment of our Group.

AMBITIOUS INVESTMENT

The position of our company in the market has also been reflected by the next three years, during which we have conducted a series of large-scale investments. We are already planning further investments. Last year we have spent nearly PLN 290 mln on various investments. We have completed three major projects:

* reconstruction of water demineralization plant;
* reconstruction of the system that removes carbon dioxide (to ammonia synthesis);
* modernization of nitrate stowage plant.

And this is not the end. We would like to complete the installation of exhaust gas desulphurization still in 2012. And in the next financial year we will finish construction of a new plant for liquid fertilizer. Our company is also in progress of building stocking place for ammonia and installation of solid fertilizers manufactured with urea and ammonium sulfate.

PULAWY POWER PLANT

We plan another very ambitious investment. Crucial procedures related to building Pulawy’s Power Plant are underway. Together with our partner PGE, we want to start the power plant’s construction in 2015. However, we think the plant will start in 2017.