Cairo-Orascom Construction Industries (OCI) sold over 1 million mt of nitrogen-based fertilizers during the fourth quarter ending Dec. 31, 2010, and approximately 3.7 million mt for the year. OCI said its investment in Gavilon performed very well and that it recorded an investment income of US$14.1 million in the quarter and $43.4 million for the year. During the quarter, ammonia, urea, and calcium ammonium nitrate (CAN) netbacks were up 22.5 percent, 20.8 percent, and 34.6 percent, respectively. Ammonia volumes were strategically held back in September/October in anticipation of price increases, and as a result ammonia sales volumes increased 23.9 percent over the previous quarter. OCI expects fertilizer prices to remain healthy in 2011, citing more domestic demand in Russia and Ukraine and higher coal prices in China, which will raise the floor price on globally traded urea. OCI said the expansion of its CAN line in The Netherlands is on track, with 300,000 mt of additional capacity expected to be completed during 2012. Despite the recent unrest in Egypt, OCI said its fertilizer plants continued to produce at normal rates, and the construction side of the business only lost six days of activity. OCI said the construction of its new nitrogen venture in Algeria, Sorfert, is on track and 96 percent complete at the end of January. Commercial production is expected to begin in fourth quarter 2011. OCI downplayed concerns about the severity of the unrest in Algeria and its impact on the new plant. OCI-wide, fourth-quarter net income was $186 million on sales of $1.32 billion, up from the year-ago $105.6 million on sales of $977.8 million. Full-year net income was $594.2 million on sales of $4.9 billion, up from the prior year’s $434.1 million on sales of $3.83 billion.
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