February 10, 2014

Leading diversified agro-industrial company "Kernel" has sold the oil extraction plant in Nevinnomyssk, Stavropol region of the Russian Federation. The processing capacity of sunflower is 100 thousand tons per year. The cost of the oil extraction plant was USD 10 million.

Nevinnomysskiy oil extraction plant previously was a member of the group "Russian oils", which was purchased by "Kernel" last year. The transaction amount reached almost USD 64 million including the debt of the Russian group. The buyer of Nevinnomysskiy plant is perhaps the Russian manufacturer of oil and fat products "Yug Rusi", as it has already applied to the Russian Federal Antimonopoly Service for the acquisition of 100% of the shares of the asset, but has not yet obtained the permit.

"Kernel" produces sunflower oil and sells bottled oil by the trademarks "Shchedryi Dar", "Stozhar", "Chumak Zolota", exports of oil and cereals, as well as provides services for storage of grains and oilseeds in the elevators. In the second quarter of fiscal year 2014 (FY, July 2013-June 2014) agroholding processed 726.087 thousand tons of sunflower seeds, which is 4.5% less than in the second quarter of FY 2013. "Kernel" completed FY 2013 with net income of USD 111.3 million, which is by 46.2% less than in FY 2012. The income has increased by 35% - to USD 2.797 billion.

In 2011 JSC "Nevinnomysskiy oil extraction plant" received RUB 14,437 million of net profit, which is by 6.2% more than the previous year. The plant’s income at the same time has increased by 19.7% - up to RUB 1.785 billion.