The financial closing of Q4 in “PUŁAWY” proved…

| Prospects & Investment |

… a success! Despite the economic crisis, our enterprise can proudly announce a net profit of 87,5 million PLN produced during the final months of 2012. There have been a few factors which brought about such a result, the factors which are continually having an impact on our business activity.

“PUŁAWY” up and running

Undoubtedly, a major reason for the company’s prosperity on the nitrogen fertilizers’ market was the fact that numerous international competitors have suspended, limited or resigned from manufacturing this kind of products. Among issues which triggered such decisions were difficulties with natural gas supply, which only highlights the necessity to diversify our energy supply. Otherwise, our company’s operations may become disrupted due to external reasons.

The chemical sector

Increased prices of chemical products and improvement of EU balance of trade in this branch of business resulted in increased business confidence in the sector. Such signals always have a motivating influence on particular market participants, even if the production volume decreases slightly.

What about energy resources?

At the end of September and beginning of October 2012, new parliamentary bills were announced regarding electrical and natural gas energy acts and legislation on renewable energy sources in Poland. The bills would replace the currently binding Energy Act, which is no longer adequate with respect to actual market situation and current economic conditions. From the viewpoint of “PUŁAWY” Capital Group, positive changes in this respect will be crucial for our further development, mainly due to the fact that we are one of the largest consumers of natural gas in the country.

More than farming products

Although “PUŁAWY” is immediately associated with nitrates fertilizers, the company is also active in various other business sectors, such as construction, furniture manufacturing, textiles and plastics. Our involvement in those kinds of activity originates from the fact that we produce components for the manufacturing of laminates (melamine) or construction supplies (caprolactam). Consequently, business dealings with clients from the aforementioned sectors had a major impact on financial results in the fourth quarter. First and foremost, we ought to mention sales to Chinese partners, who are among main clients purchasing caprolactam. Thus, we are continually striving to uphold and strengthen our position on the Chinese market.