Krymsoda records net loss of UAH 33.9 mln in 2010

Krymsoda (UX: KSOD UK) posted a 2010 net loss of UAH 33.9 mln (USD 4.62 mln) vs. net profit of UAH 62.3 mln (USD 7.82 mln) in 2009. Net revenues grew 15.4% y-o-y to UAH 1.24 bln, but selling expenses almost doubled y-o-y and the company incurred USD 73 mln in Other Expenses. Krymsoda is one of the biggest soda ash producers in Eastern Europe, with an annual capacity of 698 ths mt. It is a part of Dmitry Firtash’s Group DF. Antonina Davydenko: Given that approximately 50% of production costs is natural gas, we interpret the disproportionate 25% y-o-y production costs increase as Group DF being unable last year to ensure low cost of gas for its chemical producers, including Stirol (UX: STIR UK).