PHOSAGRO
For Immediate Release 1 November 2016
PhosAgro Fertilizer Production up 8% y-o-y in 9M 2016
Moscow - PhosAgro (Moscow Exchange, LSE: PHOR), one of the world's leading
vertically integrated phosphate-based fertilizer producers, announces its
operational results for the nine months ended 30 September 2016.
Total fertilizer production and sales increased year-on-year in 9M 2016 by 8.0%
and 7.7%, respectively. Production of phosphate-based fertilizers and feed
phosphates for 9M 2016 increased by 8.7% year-on-year to 4.3 million tonnes,
production of nitrogen-based fertilizers increased by 5.4% year-on-year to 1.1
million tonnes.
PhosAgro's production and sales volumes for 9M 2016 are summarised in the
tables below.
Production volumes by type
(kmt) 9M 2016 9M 2015 Change y-o-y
Phosphate-based fertilizers 4,347.8 4,000.1 8.7%
and MCP
Nitrogen-based fertilizers 1,088.9 1,033.6 5.4%
TOTAL fertilizers 5,436.7 5,033.7 8.0%
Apatit mine and beneficiation 7,031.7 6,413.0 9.6%
plant
Other products** 102.7 115.3 (10.9%)
Sales volumes by type
(kmt) 9M 2016 9M 2015 Change y-o-y
Phosphate-based fertilizers 4,411.1 4,074.5 8.3%
and MCP
Nitrogen-based fertilizers 1,066.7 1,013.0 5.3%
TOTAL fertilizers 5,477.8 5,087.5 7.7%
Apatit mine and beneficiation 2,579.6 2,053.0 25.7%
plant*
Other products** 151.9 164.5 (7.7%)
Commenting on the 9M 2016 operational results, PhosAgro CEO Andrey Guryev said:
"We continue to deliver on our strategy, which calls for organic growth of
flexible production capacity with a low cost basis. This has enabled us to
sustain good margins in the current challenging pricing environment.
"Global fertilizer demand has remained relatively stable, with no negative
surprises. On the supply side, however, we have seen significant changes this
year: decreased volumes from China are being replaced by higher volumes of
phosphate-based fertilizers from other major players. This is not surprising,
given the substantial expansion by these companies through either M&A or
large-scale development programmes.
"I am particularly pleased to see that PhosAgro's domestic market is one of the
strongest globally in terms of performance. We are ready to meet domestic
demand, and we saw sales of all types of fertilizers through our domestic
distribution network increase by an impressive 34% year-on-year in 9M 2016.
"Our new trade offices located in key export markets are delivering great
results: in Europe we increased sales of phosphate-based fertilizers by 21%
year-on-year, for example, and we are still prepared to provide higher volumes
of our best-quality phosphate-based fertilizers, which are nearly unsurpassed
in terms of their extremely low levels of harmful impurities. Overall, sales
to the European market reached nearly 1 million tonnes in 9M 2016.
"Sales to Latin America were overall stable in the first nine months of the
year. Volumes for our priority markets, Russia & the CIS, Europe, and Latin
America comprised 76% of total sales in 9M 2016, in line with our sales
strategy.
"Next year I expect to see positive changes, as the fundamentals driving demand
for phosphate-based products remain strong. On the supply side we expect
further increases in production volumes from integrated players, which should
reshape the industry and bring about a rationalisation among the higher-cost
non-integrated producers. We are already seeing a significant decline in
exports from China, both in phosphate-based and nitrogen fertilizers, due to
curtailed production capacities and growing cash costs. This is a positive
signal for the market, indicating that the price floor set by Chinese producers
is starting to rise. In addition, it is hard to see any further decrease in
prices for feedstocks such as ammonia and sulphur."
The table below provides a breakdown of production volumes by major product for
9M 2016:
Production volumes
(kmt) 9M 2016 9M 2015 Change y-o-y
Apatit mine and beneficiation plant
Phosphate rock 6,290.9 5,731.2 9.8%
Nepheline concentrate 740.8 681.8 8.7%
Phosphate-based fertilizers and MCP
DAP/MAP 2,022.0 1,994.5 1.4%
NPK 1,472.0 1,509.1 (2.5%)
NPS 407.6 122.4 233.0%
APP 98.8 78.2 26.3%
MCP 254.8 192.6 32.3%
PKS 71.8 75.7 (5.2%)
SOP 20.8 27.6 (24.6%)
Nitrogen-based fertilizers
AN 321.4 329.6 (2.5%)
Urea 767.5 704.0 9.0%
Other products
AlF3 34.4 24.9 38.2%
STPP 68.3 90.4 (24.4%)
Feed stock
Ammonia 884.5 797.3 10.9%
Phosphoric acid (kt P2O5) 1,670.5 1,574.6 6.1%
Sulphuric acid (kt 3,650.8 3,527.5 3.5%
monohydrate)
The table below provides a breakdown of sales volumes by major product for 9M
2016:
Sales volumes
(kmt) 9M 2016 9M 2015 Change y-o-y
Apatite mine and beneficiation plant
Phosphate rock* 1,839.8 1,368.7 34.4%
Nepheline concentrate 739.8 684.3 8.1%
Phosphate-based fertilizers and MCP
DAP/MAP 2,058.8 2,012.4 2.3%
NPK 1,540.6 1,559.7 (1.2%)
NPS 365.5 142.8 156.0%
APP 95.5 64.3 48.5%
MCP 245.8 185.0 32.9%
PKS 82.3 84.1 (2.1%)
SOP 22.6 26.2 (13.7%)
Nitrogen-based fertilizers
AN 309.6 335.3 (7.7%)
Urea 757.1 677.7 11.7%
Other products
AlF3 33.8 24.8 36.3%
STPP 76.3 86.2 (11.5%)
Ammonia 3.4 4.6 (26.1%)
Phosphoric acid 10.8 31.8 (66.0%)
Sulphuric acid 27.6 17.1 61.4%
* Excluding intra-group sales
** Excluding feed stock
For further information please contact:
OJSC PhosAgro
Irina Evstigneeva, Head of Corporate Finance and Investor Relations
ir@phosagro.ru
+7 495 231 3115
Timur Belov, Press Officer
Anastacia Basos, Deputy Press Secretary
+7 495 232 9689
EM
Sam VanDerlip
vanderlip@em-comms.com
+44 7554 993 032
+7 499 918 3134
Notes to Editors
PhosAgro is one of the leading global vertically integrated phosphate-based
fertilizer producers. The Company focuses on the production of phosphate-based
fertilizers, feed phosphate and high-grade phosphate rock (P2O5 content of not
less than 39%), as well as ammonia and nitrogen-based fertilizers.
The Company is the largest phosphate-based fertilizer producer in Europe, the
largest producer of high-grade phosphate rock worldwide and the third largest
MAP/DAP producer in the world (excluding China), according to Fertecon.
PhosAgro is also one of the leading producers of feed phosphates (MCP) in
Europe, and the only producer in Russia.
PhosAgro has 2.1 billion tonnes of resources (according to JORC) of high
quality apatite-nepheline ore. The Company's mines and phosphate rock
production facilities are located in the mountainous areas of the Kola
Peninsula in the Murmansk region of northwest Russia, whereas its fertilizer
and feed phosphate production assets are located near the city of Cherepovets
in the Vologda region and near the city of Balakovo in the Saratov region of
southwest part of European Russia.
PhosAgro's 2015 IFRS revenue was over USD 3.1 bln and EBITDA was USD 1.4 bln.
For further information on PhosAgro please visit: www.PhosAgro.com
PhosAgro : OJSC PHOSAGRO - PhosAgro Fertilizer Production up 8% y-o-y in 9M 2016
November 01, 2016 at 09:18 am EDT
Share
Share
© PRNewswire - 2016
