Achema revenue influenced by gas prices and production volume drop

The main reasons of income loss are obvious, - states Achema General Director - a significant drop in production volumes, yet price began to rise only in the end of summer. Due to the extremely expensive natural gas, production in both ammonia plants was suspended. Only the most popular fertilizers were produced using purchased ammonia.

Average natural gas price supplied to Achema by Gazprom during the fist nine months of 2010 was 30 percent higher than the average supply price during the same period last year.

According to the director, the company is still trying to reduce costs: from January to September the costs decreased by 17 percent, comparing with the same period last year, however the costs of raw materials still represent the "lions share" - 71 percent. Achema is now fully operational; both ammonia plants are on track. This operational regime should be maintained by the end of the year and during the first quarter of 2011.

When the production is resumed, the company should slowly return to its investment project development: construction of cogeneration plant No.2, which will provide sufficient electricity to satisfy company needs. The project commencement is planned in the third quarter of 2010.