Results of JSC Metafrax activity for 6 months of the year 2008

Metafrax has reviewed the company's activity for the first six month of 2008.

For this period the company's commercial output made up 4 407 mln. rubles, this is 17% more than in 2007. Revenues from sales were 4 420 mln. rubles and this figure is 486 mln. rubles more than in the previous year.

Sales of methanol, the main company's product, have become 17,8 ths. tons or 5% more, formalin - 9,5 ths. tons or 11% more, pentaerythritol - 1,9 ths. tons or 18% more, urotropine - 0,4 ths. tons or 6% more, sodium formiate - 0,2 ths. ton or 4% more.
Export share in the total sales was 46%.

The total output if compare with the first 6 months of 2007 has increased as follows: methanol output is 15,5 ths. tons or 3% more, formalin output is 13,9 ths. tons or 11% more, pentaerythritol output is 1,3 ths. tons or 13% more, urotropine output is 0,3 ths. tons or 4% more, sodium formiate output is 0,6 ths. tons or 13% more.

For the reported period the profit before tax made up 1 252 mln. rubles. Net profit made up 993 mln. rubles, this is 1,8% less than for the first six months of 2007. Raising of raw materials prices and railway transportation rates have strongly influenced the results of the company's financial activity.

As of 30 June 2008 the total company's assets value was 10 721 mln. rubles. For the first six months of 2008 the balance-sheet total has become 1 673 mln. rubles or 18% more. As of the end of June the own company's capital was 9 525 mln. rubles, rate of growth - 111%.

Net assets as of 30 June 2008 made up 9 530 mln. rubles, this is 960 mln. rubles more against that at the beginning of the year.

The company's social expenditures for the first 6 months of 2008 were 71 mln. roubles or 2,6 mln. rubles more than for the same period of the previous year.

Armen Garslyan, the Chairman of the Metafrax Board of Directors:
- The company has shown rather good results and we assume that growth rate is stable.

For the six months we have had almost 500 mln. rubles surplus against the planned production volumes and also we have physically exceeded the planned sales for the whole range of products.

In the first half of the year Metafrax has faced jump in price for carbamide which is widely consumed by our productions. And this growth still exists, although we managed to account for this factor when the company's annual budget had been elaborated.