Last checked at 5 Feb 2018 08:00
PJSC PHOSAGRO - PhosAgro 2017 Fertilizer Output Exceeds 8.3 mln tPJSC PHOSAGRO - PhosAgro 2017 Fertilizer Output Exceeds 8.3 mln t
PR Newswire
London, February 3
| For Immediate Release | 5 February 2018 |
PhosAgro 2017 Fertilizer Output Exceeds 8.3 mln t
Moscow – PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, announces its operational results for the three months (4Q) and full year (FY) ended 31 December 2017. Overall fertilizer production for 4Q and FY 2017 grew by more than 13% and 12% year-on-year to 2.3 and more than 8.3 million tonnes, respectively.
PhosAgro’s production and sales volumes are summarised in the tables below.
| Production volumes by type | ||||||
| (‘000 mt) | 4Q 2017 | 4Q 2016 | Chg y/y | FY 2017 | FY 2016 | Chg y/y |
| Phosphate-based & MCP | 1,692.3 | 1,582.1 | 7.0% | 6,606.2 | 5,929.9 | 11.4% |
| Nitrogen-based | 561.5 | 406.1 | 38.3% | 1,734.6 | 1,495.0 | 16.0% |
| Total fertilizers | 2,253.8 | 1,988.2 | 13.4% | 8,340.8 | 7,424.9 | 12.3% |
| PhosRock & nepheline | 2,641.0 | 2,456.6 | 7.5% | 10,538.4 | 9,488.3 | 11.1% |
| Other products | 30.4 | 36.2 | -16.0% | 119.9 | 138.9 | -13.7% |
| Sales volumes by type | ||||||
| (‘000 mt) | 4Q 2017 | 4Q 2016 | Chg y/y | FY 2017 | FY 2016 | Chg y/y |
| Phosphate-based & MCP | 1,599.1 | 1,418.1 | 12.8% | 6,489.0 | 5,829.2 | 11.3% |
| Nitrogen-based | 410.7 | 327.3 | 25.5% | 1,615.8 | 1,394.0 | 15.9% |
| Total fertilizers | 2,009.8 | 1,745.4 | 15.1% | 8,104.8 | 7,223.2 | 12.2% |
| PhosRock & nepheline | 1,000.2 | 838.4 | 19.3% | 3,734.0 | 3,418.0 | 9.2% |
| Other products | 73.2 | 50.2 | 45.8% | 204.3 | 190.2 | 7.4% |
Commenting on the 4Q 2017 operational results, PhosAgro CEO Andrey Guryev said:
“I am very pleased that PhosAgro has entered 2018 in good shape, having passed major milestones in 2017. We continue to leverage our experience with successful organic growth, which remains the most cost-effective development option available to PhosAgro. It has enabled the Company to sustain its leadership position on the cash cost curve in our sector, and to be well positioned to benefit from the ongoing recovery in fertilizer prices. Last but not least, in 2017 we finalised the construction of our two major investment projects: the ammonia and granulated urea units in Cherepovets. Both facilities are running close to full capacity now, and produced more than 360 and 200 thousand tonnes of ammonia and granulated urea, respectively, in 2017.
“As for production milestones, in 2017 the Company increased output of phosphate-based fertilizers by more than 10% year-on-year and achieved the new absolute record of 6.6 million tonnes. The most profitable NPK/NPS/PKS products now account for half of our phosphate-based portfolio. Production of nitrogen fertilizers grew by 16% year-on-year and exceeded 1.7 million tonnes. Finally, in the upstream division we managed to produce more than 9.5 million tonnes of phosphate rock, which is the highest level in the last 25 years.
“Our sales strategy, which is based on the principle of ‘moving closer to our end customers’ is also a cornerstone of our long-term strategy. In 2017 we managed to increase the share of direct sales to more than 90%. On top of this, we continued to achieve double-digit growth in our priority markets. In 2017, we managed to increase overall sales to Russia and the CIS by almost 20% year-on-year, to 3.1 million tonnes; sales in Europe grew by 30% year-on-year to 1.8 million tonnes and Latin American sales were up by 16% year-on-year to 1.6 million tonnes.
“Looking ahead to market conditions in 2018, we remain optimistic on price dynamics on the back of several factors: a likely decrease in exports from China due to the spike in coal prices, tighter environmental regulation and the potential launch of the 5.5 million tonnes strategic spring stockpiling programme; a substantial decrease in stocks in India; and healthy demand in Latin America, coupled with the closure of the Plant City facility by Mosaic. We believe that the recovery in phosphate prices that kicked off in 4Q 2017, driven by inflation in the main feedstock prices (ammonia and sulphur), should continue through the beginning of the spring season for key markets.”
The table below provides a breakdown of production volumes by major product:
| Production volumes | ||||||
| ('000 MT) | 4Q 2017 | 4Q 2016 | Chg y/y | FY 2017 | FY 2016 | Chg y/y |
| Apatit mine and beneficiation plant | ||||||
| Phosphate rock | 2,379.2 | 2,239.3 | 6.2% | 9,540.3 | 8,530.2 | 11.8% |
| Nepheline concentrate | 261.8 | 217.3 | 20.5% | 998.1 | 958.1 | 4.2% |
| Phosphate-based fertilizers | ||||||
| DAP/MAP | 729.7 | 746.9 | -2.3% | 3,004.0 | 2,768.9 | 8.5% |
| NPK | 692.9 | 588.0 | 17.8% | 2,566.5 | 2,060.0 | 24.6% |
| NPS | 134.9 | 104.8 | 28.7% | 423.4 | 512.4 | -17.4% |
| APP | 40.0 | 40.0 | 0.0% | 155.4 | 138.8 | 12.0% |
| MCP | 78.3 | 83.8 | -6.6% | 354.4 | 338.6 | 4.7% |
| PKS | 16.5 | 13.3 | 24.1% | 99.8 | 85.1 | 17.3% |
| SOP | 0.0 | 5.3 | -100.0% | 2.7 | 26.1 | -89.7% |
| Nitrogen-based fertilizers | ||||||
| AN | 140.8 | 137.5 | 2.4% | 496.4 | 458.9 | 8.2% |
| Urea | 420.7 | 268.6 | 56.6% | 1,238.2 | 1,036.1 | 19.5% |
| Other products | ||||||
| AlF3 | 12.1 | 11.6 | 4.3% | 47.0 | 46.0 | 2.2% |
| STPP | 18.3 | 24.6 | -25.6% | 72.9 | 92.9 | -21.5% |
| Feed stock | ||||||
| Ammonia | 503.4 | 314.1 | 60.3% | 1,454.9 | 1,198.6 | 21.4% |
| Phosphoric acid | 591.6 | 591.0 | 0.1% | 2,469.2 | 2,261.5 | 9.2% |
| Sulphuric acid | 1,390.4 | 1,275.3 | 9.0% | 5,437.8 | 4,926.1 | 10.4% |
The table below provides a breakdown of sales volumes by major product:
| Sales volumes | ||||||
| ('000 mt) | 4Q 2017 | 4Q 2016 | Chg y/y | FY 2017 | FY 2016 | Chg y/y |
| Apatit mine and beneficiation plant | ||||||
| Phosphate rock | 734.1 | 608.5 | 20.6% | 2,732.2 | 2,448.3 | 11.6% |
| Nepheline concentrate | 266.1 | 229.9 | 15.7% | 1,001.8 | 969.7 | 3.3% |
| Phosphate-based fertilizers | ||||||
| DAP/MAP | 695.8 | 637.6 | 9.1% | 2,963.9 | 2,696.4 | 9.9% |
| NPK | 570.5 | 502.9 | 13.4% | 2,488.8 | 2,043.5 | 21.8% |
| NPS | 199.9 | 151.8 | 31.7% | 409.8 | 517.3 | -20.8% |
| APP | 35.2 | 19.9 | 76.9% | 170.7 | 115.4 | 47.9% |
| MCP | 90.0 | 92.7 | -2.9% | 350.4 | 338.5 | 3.5% |
| PKS | 7.8 | 7.8 | 0.0% | 101.2 | 90.1 | 12.3% |
| SOP | 0.0 | 5.4 | -100.0% | 4.2 | 28.0 | -85.0% |
| Nitrogen-based fertilizers | ||||||
| AN | 76.7 | 65.9 | 16.4% | 476.0 | 375.5 | 26.8% |
| Urea | 334.0 | 261.4 | 27.8% | 1,139.8 | 1,018.5 | 11.9% |
| Other products | ||||||
| AlF3 | 13.1 | 12.2 | 7.4% | 49.4 | 46.0 | 7.4% |
| STPP | 20.9 | 19.8 | 5.6% | 81.1 | 96.1 | -15.6% |
* Excluding intra-group sales
** Excluding feedstock
For further information please contact:PJSC PhosAgroAlexander Seleznev, Head of Investor Relationsir@phosagro.ru+7 495 232 96 89 ex 21 87Timur Belov, Press OfficerAnastacia Basos, Deputy Press Secretary+7 495 232 9689EMSam VanDerlipvanderlip@em-comms.com+44 7554 993 032+7 499 918 3134Notes to Editors
PhosAgro (www.phosagro.ru) is one of the world’s leading vertically integrated phosphate-based fertilizer producers in terms of production volumes of phosphate-based fertilizers and high-grade phosphate rock with a P2O5 content of not less than 39% (according to IFA, Fertecon and CRU).
The Company is the largest phosphate-based fertilizer producer in Europe, the largest producer of high-grade phosphate rock (with a P2O5 content of not less than 37%) worldwide and the third largest MAP/DAP producer in the world (excluding China), according to IFA. PhosAgro is also one of the leading producers of feed phosphates (MCP) in Europe, and the only producer in Russia. PhosAgro is Russia’s only producer of nepheline concentrate.
PhosAgro’s main products include phosphate rock, over 35 grades of fertilizers, feed phosphates, ammonia, and sodium tripolyphosphate, which are used by customers in 100 countries spanning all of the world’s inhabited continents. The Company’s priority markets outside of Russia and the CIS are Latin America, Europe and Asia.
PhosAgro’s shares are traded on the Moscow Exchange, and global depositary receipts (“GDRs”) for shares trade on the London Stock Exchange (under the ticker PHOR). Since 1 June 2016, the Company’s GDRs have been included in the MSCI Russia and MSCI Emerging Markets indexes.