Stirol halves net loss in 9M11

In 9M11 Stirol generated a net loss of UAH 214 mln vs. UAH 462 mln in 9M10, while revenues increased by 2.4x y-o-y to UAH 3.6 bln. Gross margin for the period was 3.6% vs. 4.0% in 1H11. In 3Q11, net income was UAH 80 mln, implying a net margin of 7.0%. Antonina Davydenko: Though Stirol’s profitability improved, its inability to completely turnaround despite favorable fertilizer market (ammonia prices +46% y-o-y in 9M11, urea +56% y-o-y in 9M11, and ammonia nitrate +42% y-o-y in 9M11) is disappointing. For comparison, Odesa Portside Plant, a Stirol’s closest peer in terms of market conditions, posted a gross margin of 16.0% in 9M11.