Krymsoda’s Sales Up 60% to USD 49.5 mln in 1Q08

Krymsoda (KSOD: N/R), which is a part of Dmytro Firtash’s OstChem Holding AG and meets about 80% of a home market demand for ash soda, reported that its net revenue surged by 60% to USD 49.5 mln in 1Q08. The company’s net income totaled USD 4.1 mln, versus net loss of USD 1.7 mln yoy. According to Krymsoda’s press-release, it produced 189.5 ths mt of soda ash in 1Q08, a 13.8% higher than in 1Q07. Krymsoda’s class A soda ash production increased by 31% to 114 ths mt. Under the press-release in 1Q08 the company sold 45% (86 ths mt) of its products domestically. The rest 105 ths mt was exported mostly to CIS and Europe. Vladimir Nesterenko: the company is apparently benefitting from prices rising on the back of global commodity boom. Extension of this trend to the remainder of the year would imply it is currently priced at ~0.5x ’08 sales and 4-5x ’08 EBITDA, pointing to a buying opportunity.