Stirol shareholders vote down dividends for 2009

Stirol (UX: STIR UK) shareholders, at an AGM yesterday, voted down a dividend payout for 2009. The company posted net sales last year of UAH 1.9 bln (down 56% y-o-y) and a net loss of UAH 324 mln (vs. net profit of UAH 591 mln in 2008). Ruslan Patlavskyy: Based on our conversation with company management, we expect Stirol’s financial results in 3Q10 to remain subdued as the gas price surged 29% m-o-m in July to USD 320/ths m3 (+0.6% y-o-y), after the government ended subsidies to the industry. In addition, we see a high probability of ammonia fertilizer prices remaining low in 3Q10, suppressed by the highly competitive market. Management refuted rumors that it stopped production due to a dispute with Naftogaz, instead claiming its facilities were undergoing scheduled repairs.