Kirov region is a key region for URALCHEM, being home to one of the company’s leading enterprises, MFP KCCW, with more than 2,800 employees. MFP KCCW is the largest taxpayer in the region; in 2011 the plant paid a record amount of taxes to the regional budget, about 2.2 billion roubles. In 2011 the volume of production of its products increased by 5% to 2.27 million tonnes.

For the first in Latvia’s history the country was visited by the Symphony Orchestra of the Mariinsky Theatre, led by Valery Gergiev. One of Russia’s oldest classical music ensembles, the orchestra performed at the Dzintari Concert Hall in the city of Jurmala on June 12, 2012. The concert celebrated Russia Day and was supported by the Russian Embassy in Latvia, the Ministry of Culture of the Russian Federation and the Latvian Ministry of Culture. The event received significant financial support from URALCHEM.

URALCHEM is again exhibiting at Cereals, the largest agricultural event in the United Kingdom. This year URALCHEM is presenting to the British market its new nitrogen-sulphur fertilizer, nitrogen sulphate NS 30:7 (17.5 SO3), which has been developed within the company’s sulphur containing product range. The unique production technology used in its manufacture has enabled the creation of a product with excellent physical and chemical properties.

In 2011 the enterprises of the URALCHEM Group paid a total of almost 6 billion roubles in tax and social insurance payments at all levels: Azot Branch in Berezniki, Perm Region, JSC Perm Mineral Fertilizers in Perm, MFP Kirovo-Chepetsk Chemical Works in Kirovo-Chepetsk, Kirov region and Voskresensk Mineral Fertilisers in Voskresensk, Moscow region.

URALCHEM OJSC filed an application on 5 June, 2012 to participate in the tender for 1,663,213 federally owned ordinary shares in Apatit OJSC which constitute about 20% of its total share capital.

Representatives of the largest fertilizer consumers in Latin America - Heringer, Dreyfus, ADM, Bunge Argentina and the Association of Argentine Cooperatives (ACA) - visited MFP Kirovo-Chepetsk Chemical Works in Kirovo-Chepetsk (part of the URALCHEM Group).

URALCHEM held big celebrations for the professional Chemists Day at four of its enterprises: Azot Branch in Berezniki, Perm Mineral Fertilizers JSC in Perm, MFP Kirovo-Chepetsk Chemical Works in Kirovo-Chepetsk and Voskresensk Mineral Fertilisers in the Moscow region

Revenue increased to US $673 million, compared to US $566 million in Q1 2011. Operating profit increased to US $178 million, compared with US $160 million in Q1 2011. Adjusted EBITDA grew to US $207 million, compared to US $186 million in Q1 2011. Net profit amounted to US $354 million, compared with US $174 million in Q1 2011.

Revenue for the year 2011 grew to US $ 2,080 million, compared to US $ 1,389 million in 2010. Operating profit amounted to US $ 661 million, or 32% of the revenue, compared with the operating profit of US $ 205 million, or 15% of the revenue in 2010. Profit for the year amounted to US $ 445 in 2011, compared to US $ 35 million in 2010. During the year ended 31 December 2011, adjusted EBITDA reached US $ 752 million, compared to US $ 309 million the year before, a rise of 143%. Adjusted EBITDA margin for the year 2011 comprised 36% of revenue compared with 22% of revenue for the year ended 31 December 2010.

URALCHEM organized round-robin tests in one of the leading Nordic laboratories, Eurofins. On 8-10 February, company representatives delivered sample products to the Swedish laboratory for testing. During the tests, URALCHEM and Eurofin specialists compared methods used by both laboratories. This will lead to unification of the 2 sets of methods, thereby allowing URALCHEM to prove the quality of the products that the company exports to Europe and, in particular, to Scandinavian countries.