Phosagro S Regulatory News (PHOR)

PhosAgro 9M 18 Fertilizer Output up by 10% y-o-y

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 (3Q) and nine months (9M) ended 30 September 2018. Total fertilizer production and sales for 3Q 2018 increased by 2% and 9% year-on-year, to respective volumes of 2.1 and 2.2 million tonnes. Production for 9M 2018 increased by 10% year-on-year to almost 6.7 million tonnes.

PhosAgro's production and sales volumes are summarised in the tables below:

Commenting on the 3Q 2018 operational results, PhosAgro CEO Andrey Guryev said:

"PhosAgro remains focused on organic growth, which, together with solid contributions from newly launched urea and ammonia lines, has helped the Company to leverage its flexible sales strategy and maximise returns in the current 'deficit' market environment. With solid operating performance for the first nine months of the year and lower levels of maintenance expected in the fourth quarter, we are comfortable confirming our annual production guidance of nearly 9 million tonnes of finished products. Last but not least, PhosAgro is continuously seeking opportunities to make further improvements on the costs front. In the third quarter, our upstream optimisation programme enabled us to increase the recovery ratio for phosphate rock beneficiation to over 93% at Beneficiation Plant #3, which is the absolute maximum level ever achieved at the plant.

"In downstream, we increased production of MAP and NPK by 14% year-on-year of the back of robust demand from Latin America and India, as well as seasonal demand in Russia. This was partially offset by declines in DAP and NPS volumes. In our mid-stream operations, we increased ammonia output by 13% year-on-year after the launch of our new ammonia line in 2017, although 3Q 2018 performance numbers were partially impacted by maintenance in September, which also affected urea production.

"In 9M 2018, sales to CIS markets decreased by almost 60% year-on-year after the halt of deliveries to Ukraine, which was fully offset by a more than 40% year-on-year increase in sales to Europe and 30% year-on-year growth in Latin America thanks to our expanded on-the-ground presence with new local offices. Sales to North America and India rose by more than 50% year-on-year.

"Looking ahead to market conditions through the year end, we see the first signs of liquidity cooling and a certain price slowdown prior to November-December, which is typically the down season for markets. At the same time, in our view the depth of the correction will be limited due to 1) further steepening in the global cash cost curve on the back of strong pricing in ammonia and sulphur, with a continued deficit on the supply side; 2) the high season in China, with local producers focused on the domestic market; and 3) the beginning of the new buying season in Latin America, which is likely in December or January. Meanwhile, the ramp-up of new units in Saudi Arabia remains the main wild card for the sector, with any delays likely to push the market further into deficit."  

The table below provides a breakdown of production volumes by major product:

The table below provides a breakdown of sales volumes by major product:

* Excluding intra-group sales 

** Excluding feedstock

For further information please contact: PJSC PhosAgro Alexander Seleznev, Head of Investor Relations ir@phosagro.ru +7 495 232 96 89 ex 21 87 Timur Belov, Press Officer +7 495 232 9689 EMSam VanDerlip vanderlip@em-comms.com +44 7554 993 032 +7 499 918 3134Notes to Editors

PhosAgro 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 39% and higher.

The Company is the largest phosphate-based fertilizer producer in Europe (by total combined capacity for DAP/MAP/NP/NPK/NPS), the largest producer of high-grade phosphate rock with a P2O5 content of 39%, a top-three producer of MAP/DAP globally, one of the leading producers of feed phosphates (MCP) in Europe, and the only producer in Russia, and Russia's only producer of nepheline concentrate (according to the RAFP).

PhosAgro's main products include phosphate rock, 39 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.

More information about PhosAgro can be found on the website: www.phosagro.ru