Poland's ZChP posts impressive Q1 on ferts boom

Revenues grew to Zl 706.7m from Zl 460.4m in the comparative period, with high-tonnage ammonia sales - up 14.4% -another key positive feature in the result.

ZChP also saw a 71% increase in the sale of its fertilizers compared with the year-earlier period, the company said, adding that the demand showed no signs of slacking.

Poland's big fertiliser producers, including ZchP and ZA Pulawy (ZAP), are benefiting from the global staple crop shortages that are causing farmers to invest in bigger harvests, said analysts at equities house KBC Securities.

Poland's revived chemical sector privatisation plan foresees 50.73% of ZAP - also a melamine and caprolactam producer -and 68.2% of ZChP floated on the Warsaw Stock Exchange in 2009 or 2010.

However, the government is considering instead transferring substantial stakes in the firms to state gas monopoly PGNiG, which provides the companies with natural gas, to achieve vertical integration synergies.

($1 = €0.64/$1 = Zl 2.17)

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By: Will Conroy
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