Last checked at 23 Oct 2015 10:30
OJSC PHOSAGRO - PhosAgro Fertilizer Sales up 11% y-o-y in 9M 2015OJSC PHOSAGRO - PhosAgro Fertilizer Sales up 11% y-o-y in 9M 2015
PR Newswire
London, October 23
| For Immediate Release | 23 October 2015 |
PhosAgro Fertilizer Sales up 11% y-o-y in 9M 2015
Moscow – PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, announces its operating results for the nine months ended 30 September 2015.
Total fertilizer production and sales increased year-on-year in 9M 2015 by 9.7% and 10.6%, respectively. Production of phosphate-based fertilizers and feed phosphates for 9M 2015 increased by 12.5% year-on-year to 4 million tonnes, while production of nitrogen-based fertilizers was stable at 1 million tonnes.
PhosAgro’s production and sales volumes for 9M 2015 are summarized in the tables below.
| Production volumes by type | |||
| (kmt) | 9M 2015 | 9M 2014 | Change y-o-y |
| Phosphate-based fertilizers and MCP | 4,000.1 | 3,555.7 | 12.5% |
| Nitrogen-based fertilizers | 1,033.6 | 1,033.9 | (0.0%) |
| TOTAL fertilizers | 5,033.7 | 4,589.6 | 9.7% |
| Apatit mine and beneficiation plant | 6,413.0 | 6,408.8 | 0.1% |
| Other products** | 115.3 | 118.4 | (2.6%) |
| Sales volumes by type | |||
| (kmt) | 9M 2015 | 9M 2014 | Change y-o-y |
| Phosphate-based fertilizers and MCP | 4,074.5 | 3,518.0 | 15.8% |
| Nitrogen-based fertilizers | 1,013.0 | 1,080.1 | (6.2%) |
| TOTAL fertilizers | 5,087.5 | 4,598.1 | 10.6% |
| Apatit mine and beneficiation plant* | 2,053.0 | 2,556.9 | (19.7%) |
| Other products** | 164.5 | 269.8 | (39.0%) |
Commenting on the 9M 2015 operating results, PhosAgro CEO Andrey Guryev said:
“I am now confident that by the end of 2015, PhosAgro will achieve its target of increasing phosphate-based fertilizer production by around half a million tonnes through modernisation and efficiency projects alone. This proves that we made the right decision earlier this year: instead of spending money on new granulation lines, we focussed on optimising our use of current equipment. This has enabled PhosAgro to increase production volumes by 12.5% year-on-year, with no new fertilizer capacities launched.
“I also want to draw attention to the impressive upstream project that was completed earlier this year: Main Shaft #2 at our biggest underground mine. This will help to improve significantly the cost efficiency of our mining operations, which should already be reflected in PhosAgro’s results next year.
“With regards to the market, we are now approaching the low season, and DAP prices softened in September on the back of lower activity from Indian distributers after the summer application season, as well as continued economic problems in Brazil. As result, some of our industry peers have decided to shutter some production capacities.
“However, winter application season in India is approaching and the latest trade reports show significant improvements, with around 500 thousand tonnes shipped/committed in October. That makes us more confident that India will import close to 6 million tons in calendar year 2015, in line with our expectations given the developments on that local market. With further reforms in India and further deregulation of agricultural and fertilizer markets, we may even see significant additional upside going forward.”
The table below provides a breakdown of production volumes by major product for the 9M 2015:
| Production volumes | |||
| (kmt) | 9M 2015 | 9M 2014 | Change y-o-y |
| Apatit mine and beneficiation plant | |||
| Phosphate rock | 5,731.2 | 5,740.0 | (0.2%) |
| Nepheline concentrate | 681.8 | 668.8 | 1.9% |
| Phosphate-based fertilizers and MCP | |||
| DAP/MAP | 1,994.5 | 1,748.9 | 14.0% |
| NPK | 1,509.1 | 1,391.6 | 8.4% |
| NPS | 122.4 | 100.7 | 21.5% |
| APP | 78.2 | 71.7 | 9.1% |
| MCP | 192.6 | 185.8 | 3.7% |
| PKS | 75.7 | 36.6 | 106.8% |
| SOP | 27.6 | 20.4 | 35.3% |
| Nitrogen-based fertilizers | |||
| AN | 329.6 | 170.9 | 92.9% |
| NP | 0.0 | 120.5 | (100.0%) |
| Urea | 704.0 | 742.5 | (5.2%) |
| Other products | |||
| AlF3 | 24.9 | 21.8 | 14.2% |
| STPP | 90.4 | 96.6 | (6.4%) |
| Feed stock | |||
| Ammonia | 797.3 | 875.4 | (8.9%) |
| Phosphoric acid (kt P2O5) | 1,574.6 | 1,430.6 | 10.1% |
| Sulphuric acid (kt monohydrate) | 3,527.5 | 3,299.8 | 6.9% |
The table below provides a breakdown of sales volumes by major product for the 9M 2015:
| Sales volumes | |||
| (kmt) | 9M 2015 | 9M 2014 | Change y-o-y |
| Apatite mine and beneficiation plant | |||
| Phosphate rock* | 1,368.7 | 1,886.1 | (27.4%) |
| Nepheline concentrate | 684.3 | 670.8 | 2.0% |
| Phosphate-based fertilizers and MCP | |||
| DAP/MAP | 2,012.4 | 1,779.5 | 13.1% |
| NPK | 1,559.7 | 1,345.6 | 15.9% |
| NPS | 142.8 | 103.1 | 38.5% |
| APP | 64.3 | 61.0 | 5.4% |
| MCP | 185.0 | 180.6 | 2.4% |
| PKS | 84.1 | 27.7 | 203.6% |
| SOP | 26.2 | 20.5 | 27.8% |
| Nitrogen-based fertilizers | |||
| AN | 335.3 | 187.3 | 79.0% |
| NP | 0.0 | 118.1 | (100.0%) |
| Urea | 677.7 | 774.7 | (12.5%) |
| Other products | |||
| AlF3 | 24.8 | 21.7 | 14.3% |
| STPP | 86.2 | 96.1 | (10.3%) |
| Ammonia | 4.6 | 27.2 | (83.1%) |
| Phosphoric acid | 31.8 | 42.0 | (24.3%) |
| Sulphuric acid | 17.1 | 82.8 | (79.3%) |
* 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 2014 IFRS revenue was over USD 3.2 bln and EBITDA was USD 979 mln.
For further information on PhosAgro please visit: www.PhosAgro.com