Ukraine’s Odessa Port Plant slumps to first quarter loss

09 July 2012 16:20  [Source: ICIS news]

MOSCOW (ICIS)--Ukraine’s Odessa Port Plant (OPZ) sank to a net loss of hryvnya (HRN) 123m ($15.2m/€12.3m) in the first quarter of 2012 with sales down sharply, the ammonia producer said on Monday.

The net loss for the January to March 2012 period contrasted with the HRN336m net profit earned in the same period a year earlier. Sales in the 2012 first quarter were down 36.6% at HRN827m.

Odessa Port Plant shut down one of its two ammonia lines from the start of January because of weak market conditions and high production costs.

Russian and Ukrainian ammonia producers moved to limit ammonia supply in early 2012 in the face of weak demand and sliding prices.

The 1.5m tonnes/year Odessa plant is the Ukraine's second-largest ammonia producer. The state-owned stake in OPZ was auctioned in September 2009, but Ukrainian authorities disapproved of the results of the privatisation auction.

In January 2012, Ukraine's State Property Fund (SPF) indicated plans to sell the controlling stake in the Odessa Port Plant later this year. The state-owned 99.567% stake was valued at HRN5-7bn (Euro 500-700m). However, on 30 June SPF head Alexander Ryabchenko announced the plant would not be privatised any time soon.

($1 = HRN8.10; €1 = HRN9.96)

By: Sergei Blagov
+44 20 8652 3214

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