December 4, 2008 / 2:46 PM / 10 years ago

UPDATE 1-Migao Q4 profit surges on higher potash prices

* Q4 profit jumps nearly six-fold

* Q4 rev more than triples * Q4 helped by higher potash prices

* Sees 2009 revenue below estimates

Dec 4 (Reuters) - China-based Migao Corp’s MGO.TO quarterly profit rose more than C$10 million from a year ago, helped by higher potash selling prices, but the specialty potash fertilizer producer forecast weak 2009 revenue.

Potash prices touched record levels of around $1,000 per tonne in September, having quadrupled in the course of the year as record demand for the nutrient coincided with a supply shortage.

For the fourth quarter ended Sept. 30, the company’s net income shot up to C$12.9 million, or 32 Canadian cents per basic share, from C$2.3 million, or 6 Canadian cents per share, a year ago. Revenue more than tripled to C$78.1 million.

Toronto-listed Migao said it expects 2009 revenue of C$340 million to C$370 million. Analysts on average were expecting C$382.6 million, according to Reuters Estimates.

Migao expects 2009 gross profit margin to remain in the 22 percent to 24 percent range, Chief Executive Liu Guocai said in a statement.

Shares of the company closed at C$3.00 Wednesday on the Toronto Stock Exchange.

For the press release, please double click [ID:nCCNEdAJwa] . For the alerts, please double click [ID:nWNAB9554] . ($1=1.257 Canadian Dollar) (Reporting by Shradhha Sharma in Bangalore; Editing by Himani Sarkar)

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