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Dorogobuzh Releases 2010 RAS Statements

Today Dorogobuzh (RTS, MICEX and LSE: AKRN) announced its audited non-consolidated RAS statements for 2010.

Financial Highlights

• Revenue was RUB 10,963 million, up 11% year-on-year (2009: RUB 9,919 million).
• Operating profit totalled RUB 2,417 million, up 4% from RUB 2,318 million in 2009.
• EBITDA* went up 5% year-on-year to RUB 2,667 million (2009: RUB 2,531 million).
• EBITDA margin was 24%, down from 26% in 2009.
• Net profit totalled RUB 2,714 million, including a gain of RUB 446 million from a mark-to-market revaluation of Company’s financial investments. Net profit before revaluation was RUB 2,268 million, up 40% year-on-year (2009: RUB 1,617 million).

* EBITDA is calculated as operating profit plus depreciation and amortisation.

Notes on Key Financials

Dorogobuzh financial indicators improved in 2010, encouraged by higher prices and an upswing in global demand for the mineral fertilisers that are the Company’s key products. Despite the long shutdown of the ammonia unit due to an overhaul in mid-2010 and the resulting 7.7% drop in output, the Company managed to improve its operating profit and EBITDA.

In addition to core operations, proceeds from the sale of investments also contributed to higher net profit.

There are no planned shutdowns of the ammonia unit for revamping scheduled for 2011, which should have a beneficial effect on the Company’s operating results. Furthermore, the reconstruction performed in 2010 will allow Dorogobuzh to improve its energy efficiency and expand its ammonia and mineral fertiliser production.

  Financial Statements in Russian