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TOAZ Announces First Half 2016 Financial Results

TOAZ Announces First Half 2016 Financial Results

OJSC Togliattiazot, Russia’s biggest ammonia producer, announced its financial and operating results for the six months ended June 30, 2016.

Operating results

In the accounting period, OJSC Togliattiazot produced 1,483 thousand tons of ammonia, up 13% YoY (1,311 thousand tons in the first half of 2015). Urea production amounted to 351.3 thousand tons, up 24% YoY (282.3 thousand tons).

RAS Financial Results

Revenue of OJSC Togliattiazot during the period of January to June 2016 declined to 27,126 mln rubles versus 29,203 mln rubles YoY (down 7%). The decline was driven by a significant fall of selling prices of main products both at the export and domestic markets. Despite the deterioration of the market situation, the plant continued to boost sales of ammonia and urea.

In the first half of 2016 net profit of OJSC Togliattiazot amounted to 2,724 mln rubles (vs. 9,520 mln rubles in the first half of 2015). Along with the above-mentioned reasons, growing prices for raw materials and increased tariffs on transportation both by rail and pipe have also had a substantial impact on the decline of profits.

Vyacheslav Suslov, CEO of CJSC Corporation Togliattiazot, commented on the first half of 2016 results:

“We expected the global economic environment to be much worse this year than in 2015, so we have prepared for the changes in advance and actively carried out upgrading of production. At present, ToAZ continues to increase efficiency and implement the investment program to be able to mitigate global market slump and be ready to welcome the new period of growth”.