April 11, 2012 / 7:27 AM / in 6 years

UPDATE 1-Russia's Uralkali net jumps 64 pct, misses forecasts

* FY net $1.53 billion vs $929 million in 2010

* FY EBITDA $2.46 billion, vs $1.40 billion in 2010

* FY revenues $4.20 billion, vs $2.99 billion in 2010

MOSCOW, April 11 (Reuters) - Uralkali, the world’s second-largest potash producer by capacity, said its 2011 net profit jumped 64 percent from the previous year to $1.53 billion on higher prices and output, missing expectations as financial expenses weighed.

Analysts polled by Reuters had expected a net profit of $1.75 billion, but the producer of the soil nutrient used in agriculture booked $222 million in financial expenses, pushing it below this level.

The expenses listed in a statement released on Wednesday included $140 million from the re-estimation of financial instruments and monetary assets denominated in other currencies, as well as some other one-off expenses.

The company, controlled by billionaire Suleiman Kerimov and associates, did not provide any financial outlook for the current year but noted that the industry was well-positioned.

“Despite recent market challenges, the fundamentals of the potash industry remain strong and we are sure that we will be able to satisfy growing demand in the longer term,” chief executive Vladislav Baumgertner said in a statement.

After climbing sharply in 2011, potash prices have stabilised. Uralkali’s trading joint venture agreed last month to sell output to China at $470 per tonne, the same price seen last June.

Market leader Potash Corp said in February it extended temporary shutdowns at two of its largest potash mines in a battle to reduce inventories that are rising due to weak demand.

Uralkali said last month it expects to produce 10.5 million tonnes of the soil nutrient this year, down from 10.8 million tonnes in 2011 as demand remains flat.

Last year’s earnings before interest, taxation, depreciation and amortisation (EBITDA) reached $2.46 billion, up from $1.40 billion in 2010 and also ahead of the $2.38 billion Reuters poll forecast.

Revenue in the period reached $4.20 billion, up from $2.99 billion in 2010 and slightly below the $4.21 billion forecast.

Uralkali merged with domestic rival Silvinit last year to become Russia’s largest potash producer, and its financials have been adjusted to reflect the combination of the two firms.

At 0657 GMT the shares were down 0.6 percent at 219.16 roubles, underperforming Moscow’s MICEX which was off 0.2 percent.

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