Operating Results of KuibyshevAzot OJSC in H1, 2008

The sales of commercial products of KuibyshevAzot in the 6 months of 2008 totaled 10,6 b. RUR, 26,5% up as compared to the results of the same period of last year. The profit on sales rose by 67,9% to 2,9b. RUR, the net profit increased by 85,8% tо 1,9 b. RUR. The return on sales went up to 26,9% (20,3% in H1, 2007).

The positive change of figures is linked with production growth and favorable situation in product markets.

Output of main products as compared to the same period of 2007:

- Mineral fertilizers in terms of 100% N: 208,300 t (102,2 %), including: Ammonium nitrate: 252,900 t (99%); Urea: 151,500 t (98,1%); Ammonium sulphate: 243,100 t (115,3%); - Ammonia: 306,200 t (105,7%); - Caprolactam:93,700 t (113,8%); - Polyamide-6: 46,400 t (137%); - Technical yarns: 3,200 t (133,9%); - Cord fabric: 2,500 t (139,8%).

The construction of the fourth 50,000 t/a line of polyamide 6 plant is going on in line with the schedule. The production facilities under this project are being mounted as well as installation of heat and utility service lines. With its commissioning in 2009 the total nameplate capacity of polyamide 6 plant at KuibyshevAzot will reach up to 150,000 t/a.

The installation of cold unit equipment and pipelines for liquid product storage and control instrumentation systems at the new air separation plant is being carried out. The implementation of this project will allow to meet to higher extent the captive needs of the company in nitrogen and oxygen and to increase output of process gases for external consumers.

At the urea plant preparatory activities for revamping of the first synthesis and distillation unit are conducted. Its completion will make it possible to increase output of the final product by 8% (up to 1,000 t/d).

All the above mentioned activities are performed to buildup output of main products of KuibyshevAzot and to decrease consumption of raw materials and energies.