Last checked at 3 May 2017 16:00
PJSC PHOSAGRO - PhosAgro Fertilizer Production up 2.4% YoY in 1Q17PJSC PHOSAGRO - PhosAgro Fertilizer Production up 2.4% YoY in 1Q17
PR Newswire
London, May 3
| For Immediate Release | 3 May 2017 |
PhosAgro Fertilizer Production up 2.4% YoY in 1Q17
Moscow – PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, announces its operational results for 1Q 2017.
Downstream production of fertilizers grew by 2.4% year-on-year to 1.96 million tonnes in 1Q 2017, supported by a healthy 3.8% year-on-year increase in output of phosphate-based products to 1.58 million tonnes. The production of nitrogen-based fertilizers decreased slightly by 3.0% year-on-year.
Sales in 1Q 2017 reached almost 2 million tonnes (up by 8.7% year-on-year), while the sale of phosphate-based products grew by 9.2% year-on-year to more than 1.5 million tonnes. The sale of nitrogen-based products increased by 7.1% year-on-year to 0.46 million tonnes.
PhosAgro’s production and sales volumes for 1Q 2017 and 1Q 2016 are summarised in the tables below.
| Production Volumes by type | |||
| (kmt) | 1Q 2017 | 1Q 2016 | Chng, y/y |
| Phosphate-based fertilizers and MCP | 1,576.3 | 1,519.2 | 3.8% |
| Nitrogen-based fertilizers | 382.6 | 394.4 | (3.0%) |
| TOTAL FERTILIZERS | 1,958.9 | 1,913.6 | 2.4% |
| Apatit mine and beneficiation plant | 2,502.3 | 2,356.8 | 6.2% |
| Other products ** | 26.1 | 32.2 | (18.9%) |
| Sales Volumes by type | |||
| (kmt) | 1Q 2017 | 1Q 2016 | Chng, y/y |
| Phosphate-based fertilizers | 1,536.0 | 1,406.9 | 9.2% |
| Nitrogen-based fertilizers | 460.5 | 429.8 | 7.1% |
| TOTAL FERTILIZERS | 1,996.5 | 1,836.7 | 8.7% |
| Apatit mine and beneficiation plant * | 910.6 | 843.7 | 7.9% |
| Other products | 33.2 | 45.8 | (27.5%) |
Commenting on the 1Q 2017 operational results, PhosAgro CEO Andrey Guryev said:
“I am very pleased that PhosAgro has delivered another set of strong operational results, which again proves that our strategy of organic growth of flexible production capacity is producing the desired results. PhosAgro’s performance in phosphate-based fertilizer and phosphate rock production is exactly in line with the long-term development programme to 2020 reviewed by the Board of Directors at the end of 2016 and recently presented at our Capital Markets Day in March 2017.
“In terms of product mix, we saw much better demand for complex NPK(S) crop nutrients, as opposed to concentrated DAP/MAP fertilizers, in the first three months of the year. In 1Q 2017, sales of NPK/NPS grew by almost 15% year-on-year to more than 0.6 million tonnes, compared to a just 1% year-on-year increase for DAP/MAP fertilizers. PhosAgro’s continued growth in production capacity thanks to ongoing debottlenecking, which remains one of the cheapest expansion options for us, and almost 9% year-on-year growth in sales have helped to partially offset the negative impact on margins from the rouble’s appreciation against other currencies year-on-year in 1Q 2017.
“PhosAgro’s domestic sales (Russia remains a priority market for the Company) in the first quarter of 2017 increased by nearly 30% year-on-year and exceeded 0.6 million tonnes. According to preliminary numbers from the Russian Association of Fertilizer Producers, demand for nitrogen fertilizers (AN + Urea) in Russia was slightly weaker year-on-year, but this was almost fully compensated for by the growth in consumption of phosphate-based fertilizers (MAP+NPKs).
“Looking at global seaborne markets in 1Q 2017, we saw further expansion of export-oriented capacities in the MENA region (predominantly from OCP as a result of new capacities commissioned in 2H 2016 and 1Q 2017) and some recovery in export volumes from China driven by favourable pricing in February and March combined with the low base of 2016. Exports of phosphates (DAP+MAP+NP) from China in 1Q 2017 rose by 290k tonnes, or 30% year-on-year. This was significantly outpaced, however, by growing demand, especially from Brazil: in 1Q 2017 Brazilian imports of phosphate-based fertilizers doubled year-on-year in P2O5 content, while the import of MAP almost tripled year-on-year.
“Looking ahead to the rest of 2017, we see that pricing is fully in line with normal market price seasonality. February and March saw a sharp recovery in prices (DAP FOB Tampa reached USD 375 per tonne from USD 315 per tonne in mid-December) triggered by the fast development of the purchasing season, growth in feedstock prices and very tight product availability. However, we currently see some seasonal softening after the end of the spring season in Europe and North America, and higher export potential from China, where the domestic high season ends in April. The revival of demand from southern Asia that typically occurs in May-June will be the next seasonal milestone. In India, the subsidy scheme remains favourable for imported phosphates, while the recent Rupee appreciation implies higher price affordability. Finally, the increased NPS subsidy may boost demand for sulphur-containing fertilizers like those in PhosAgro’s production portfolio.
“In closing, I would once again confirm that our key investment projects, the construction of new ammonia and urea units, are both on schedule and due to be fully operational in August and September of this year.”
The table below provides a breakdown of production volumes by major product for 1Q 2017 and 1Q 2016:
| Production Volumes | |||
| (kmt) | 1Q 2017 | 1Q 2016 | Change y-o-y |
| Apatit mine and beneficiation plant | |||
| Phosphate rock | 2,290.4 | 2,136.5 | 7.2% |
| Nepheline concentrate | 211.9 | 220.3 | (3.8%) |
| Phosphate-based fertilizers | |||
| DAP/MAP | 751.9 | 746.1 | 0.8% |
| NPK | 532.5 | 474.9 | 12.1% |
| NPS | 115.8 | 146.6 | (21.0%) |
| APP | 43.2 | 35.2 | 22.7% |
| MCP | 96.4 | 84.4 | 14.2% |
| PKS | 33.8 | 24.6 | 37.4% |
| SOP | 2.7 | 7.4 | (63.5%) |
| Nitrogen-based fertilizers | |||
| AN | 129.8 | 129.9 | (0.1%) |
| Urea | 252.8 | 264.5 | (4.4%) |
| Other products | |||
| AlF3 | 10.8 | 11.3 | (4.4%) |
| STPP | 15.3 | 20.9 | (26.8%) |
| Feedstock | |||
| Ammonia | 279.3 | 297.9 | (6.2%) |
| Phosphoric acid | 596.4 | 587.7 | 1.5% |
| Sulphuric acid | 1,284.3 | 1,285.4 | (0.1%) |
The table below provides a breakdown of sales volumes by major product for 1Q 2017 and 1Q 2016:
| Sales Volumes | |||
| (kmt) | 1Q 2017 | 1Q 2016 | Change y-o-y |
| Apatit mine and beneficiation plant | |||
| Phosphate rock | 687.0 | 632.2 | 8.7% |
| Nepheline concentrate | 223.6 | 211.5 | 5.7% |
| Phosphate-based fertilizers | |||
| DAP/MAP | 733.9 | 726.5 | 1.0% |
| NPK | 502.1 | 437.8 | 14.7% |
| NPS | 118.9 | 105.2 | 13.0% |
| APP | 56.9 | 36.2 | 57.2% |
| MCP | 89.5 | 73.3 | 22.1% |
| PKS | 31.9 | 21.6 | 47.7% |
| SOP | 2.8 | 6.3 | (55.6%) |
| Nitrogen-based fertilizers | |||
| AN | 228.3 | 189.0 | 20.8% |
| Urea | 232.2 | 240.8 | (3.6%) |
| Other products | |||
| AlF3 | 11.0 | 11.6 | (5.2%) |
| STPP | 16.2 | 24.7 | (34.4%) |
| Ammonia | 1.4 | 1.1 | 27.3% |
| Phosphoric acid | 2.6 | 5.8 | (55.2%) |
| Sulphuric acid | 2.0 | 2.6 | (23.1%) |
* 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 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 2016 IFRS revenue was over USD 2.8 bln and EBITDA was USD 1.08 bln.
For further information on PhosAgro please visit: www.PhosAgro.com