Stirol increases ammonia nitrate output 4x m-o-m in February

Stirol (UX: STIR UK) increased ammonia nitrate output by fourfold m-o-m in February to 20 ths mt, Interfax reported yesterday, citing the company’s CEO. Antonina Davydenko: The fourfold hike in production is due to a low base effect since Stirol resumed its ammonia nitrate output only in January 2011, after suspending production in August 2009 due to low profitability. This monthly output level is comparable to its figures in 1H09. We do not expect a major boost to the company’s top line since we assume the majority of the output will be delivered to the State Agricultural Fund at a price 20-25% below the market as a part of an agreement between Group DF to provide discounted fertilizers in exchange for write-offs on gas debts.