Russia's Uralkali 2010 Net Profit Jumps 83%
Russian potash producer Uralkali said on Friday its net profit surged 83% in 2010, beating expectations as output and prices surged thanks to firm demand for the soil nutrient.
Net profit reached 16.65 billion rubles ($587.5 million), up from 9.10 billion in 2009 and ahead of the 16.58 billion average forecast in a Reuters poll.
The company, which is merging with domestic rival Silvinit to form the world's second largest potash miner, also said it expects combined output to reach 13 million tons in 2012.
The companies, controlled by tycoon Suleiman Kerimov and his associates, earlier this month said they expect 2011 potash output to reach 10.6 million tons.
"As the potash market continues to advance, both companies intend to increase their production assets further via investment projects and organic growth," Chief Executive Vladislav Baumgertner said in a statement.
Demand for potash and other fertilizers is up as farmers rush to maximize yields with grain prices at fresh highs, and the Russian national champion is expected to have increased clout on the global market.
Uralkali also said 2010 earnings before interest, taxation, depreciation and amortization (EBITDA) reached 24.30 billion rubles, up from 16.38 billion in 2009 and just below the 24.77 billion poll forecast.
Revenue rose to 51.59 billion rubles from 33.81 billion in 2009 and ahead of the 50.27 billion ruble forecast.
