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OJSC PHOSAGRO - PhosAgro Fertilizer Production up 8% y-o-y in 9M 2016OJSC PHOSAGRO - PhosAgro Fertilizer Production up 8% y-o-y in 9M 2016
PR Newswire
London, November 1
| 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 and MCP | 4,347.8 | 4,000.1 | 8.7% |
| 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 plant | 7,031.7 | 6,413.0 | 9.6% |
| Other products** | 102.7 | 115.3 | (10.9%) |
| Sales volumes by type | |||
| (kmt) | 9M 2016 | 9M 2015 | Change y-o-y |
| Phosphate-based fertilizers and MCP | 4,411.1 | 4,074.5 | 8.3% |
| 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 plant* | 2,579.6 | 2,053.0 | 25.7% |
| 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 monohydrate) | 3,650.8 | 3,527.5 | 3.5% |
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 PhosAgroIrina Evstigneeva, Head of Corporate Finance and Investor Relationsir@phosagro.ru+7 495 231 3115 Timur 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 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