Perm’s Silvinit Depends on the Indian Contract for its Plans

02.07.2009 — News

THE PERM KRAI.

OAO Silvinit's shareholders will receive the highest dividend in the enterprise's history. Following the 2008 results the yield on a preferred share will equal 1,120 roubles, while the yield on a common share will equal 490 roubles.

All in all, 6 billion 756 million will be paid in dividend. In 2007 the dividend for each share equalled 450 roubles per share, whilst the total amount of dividends paid out totalled 4 billion 695 million roubles.

According to preliminary data, OAO Silvinit's last year's net profit increased 4.4 times and totalled 29 billion 193 million roubles. These figures can be explained by the increase in the price of potassium fertilisers.

The plant representatives told RusBusinessNews that the further production plans depend on the outcome of the tender for the supply of potassium fertilisers to India in August 2009 - March 2010. Six international companies are participating in this bid, including Silvinit's subsidiary - International Potassium Company.

India is currently buying fertilisers for 625 dollars per ton. However, the analysts admit that one of the participants may land an exclusive contract by means of dumping prices.

India is one of the biggest consumer of OAO Silvinit's products, second only to China. About 19.4% of Silvinit's fertilisers are exported to India.