OCI reports results

Cairo-Orascom Construction Industries (OCI) reports that its fertilizer group sold some 1.1 million mt of nitrogen-based fertilizer during the second quarter ending June 30, 2010. While Egyptian Fertilizer Co. (EFC) reported weaker results as a result of softer urea prices, OCI Nitrogen saw a stronger price environment for nitrate-based products, offsetting the impact of urea prices. However, with urea prices seeing a 30 percent rebound starting in July, the company sees positive fundamentals going forward. OCI also reported improved results from its investment in Gavilon LLC during the quarter. EFC second-quarter urea sales were 334,400 mt, up from the first quarter’s 307,690 mt, while ammonium sulfate sales were off, at 7,691 mt from 22,100 mt in 1Q 10. OCI unit EBIC sold 172,449 mt of ammonia, up from the first quarter’s 131,550 mt. The OCI Nitrogen unit, which OCI bought from DSM, saw second-quarter CAN sales of 352,000 mt, UAN 43,000 mt, ammonia 101,000 mt, nitric acid 27,000 mt, and melamine 51,000 mt. OCI’s EFT unit sold 22,545 mt of urea in the second quarter. OCI has been moving to assimilate its new assets into the company, including the new ammonia terminal in Rotterdam (GM July 19, 2010), as well as the former DSM assets (GM April 5, 2010). The company reports that construction of the Sorfert Algeria nitrogen complex remains on track, with 94.2 percent completion as of July 31, 2010, and commissioning expected in early 2011. Company-wide, OCI second-quarter net income was up 40.8 percent, to $144.0 million on revenues from continuing operations of $1.34 billion, up from the year-ago net income of $102.3 million on revenues of $1.1 billion. Six-month net income was $260.6 million on sales of $2.33 billion, up from the year-ago income of $208 million on sales of $1.92 billion.