Uralkali Plunges on Output Cut

Uralkali shares plunged more than 30 percent in London on Thursday after the company slashed output in the final two months of this year and warned that it could reduce cash revenue by $650 million.

"The turmoil in the global financial markets … has triggered a drop in demand for crops, thereby hindering farmers' capacity to purchase planned volumes of fertilizer," Uralkali said in a statement.

Uralkali shares, beloved by investors for the company's fat profit margin, were dumped earlier this month after the state reopened an investigation into a 2006 mine accident.

The company's Global Depositary Receipts, traded in London, are now down 96 percent from their June peak, a fall on par with those suffered by the most heavily leveraged real estate developers. They closed at $28.48 apiece, and Moscow shares ended down 25.06 percent at 22.82 rubles.

The renewed investigation brought back memories of the vast tax claims that destroyed Yukos, and investors, wary of rising corporate governance risks, fled the stock.

On Thursday, the company said it was halving production this November and December — in line with plans announced to slash this year's output by 500,000 tons — which were announced on Oct. 30.

That would reduce full-year output by 10 percent and cut revenues by $650 million, Uralkali said.