26 Jul 2012 09:50
For Immediate Release 26 July 2012
PhosAgro Phosphate-based Fertilizer Sales Up 6.6% in the First Half of 2012
Moscow - PhosAgro , a leading global vertically integrated phosphate-based fertilizer producer, announces its production update for the first six months of 2012. The Company increased phosphate-based fertiliser sales volumes in the first six months of 2012 by 6.6% year-on-year (y-o-y), while production of phosphate-based fertilisers for the same period increased by 6.4% y-o-y.
PhosAgro's production and sales volumes for the first six months of 2012 are summarized in the tables below.
Production Volumes by type (kmt) 1HY2012 1HY2011 Change y-o-y Phosphate-based fertilizers 2,170.6 2,040.8 6.4% Nitrogen-based fertilizers 468.7 490.6 (4.5%) Apatit mine and beneficiation 4,397.7 4,339.4 1.3%plant Other products 3,576.7 3,664.9 (2.4%) Sales Volumes by type (kmt) 1HY2012 1HY2011 Change y-o-y Phosphate-based fertilizers 2,123.2 1,992.4 6.6% Nitrogen-based fertilizers 479.6 491.3 (2.4%) Apatit mine and beneficiation 2,187.7 2,074.3 5.5%plant Other products 166.9 203.0 (17.8%)
PhosAgro CEO Maxim Volkov said: "I am pleased to announce a 6.4% rise in production and a 6.6% rise in sales of phosphate-based fertilisers in the first six months of 2012. This was possible due to the successful implementation of our strategy to grow organically by increasing processing of our own phosphate rock for phosphate-based fertilisers like MAP, DAP, NPK and NPS, as well as enhancing the flexibility of both our production and sales models. We were able to increase substantially volumes of complex NPK fertilisers while DAP prices were under pressure, and to keep capacity utilization at close to 100%, with a significant y-o-y increase in volumes. With soft commodity prices exceptionally high and balanced supply and demand in the phosphate fertilizer market, our view for the rest of 2012 remains positive."
The table below provides the first six months of 2012 breakdown of productionvolumes by major product: Production Volumes (kmt) 1HY2012 1HY2011 Change y-o-y Apatit mine and beneficiation plant Phosphate rock 3,877.0 3,861.0 0.4% Nepheline concentrate 520.7 478.4 8.8% Phosphate-based fertilizers DAP/MAP 1,005.0 1,311.7 (23.4%) NPK 856.8 563.6 52.0% NPS 157.5 22.0 615.9% APP 29.3 31.0 (5.5%) MCP 122.0 112.5 8.4% Nitrogen-based fertilizers AN 217.5 239.1 (9.0%) Urea 251.2 251.5 (0.1%) Other products AlF3 13.1 12.8 2.3% Ammonia 534.0 584.7 (8.7%) Phosphoric acid 804.0 856.7 (6.2%) Sulphuric acid 2,225.6 2,210.7 0.7%The table below provides the first six months of 2012 breakdown sales volumesby major product: Sales Volumes (kmt) 1HY2012 1HY2011 Change y-o-y Apatite mine and beneficiation plant Phosphate rock 1,676.7 1,588.1 5.6% Nepheline concentrate 511.0 486.2 5.1% Phosphate-based fertilizers DAP/MAP 983.6 1 291.4 (23.8%) NPK 862.3 546.9 57.7% NPS 129.5 22.3 480.7% APP 24.5 23.5 4.3% MCP 123.3 108.3 13.9% Nitrogen-based fertilizers AN 205.1 221.8 (7.5%) Urea 274.5 269.5 1.9% Other products AlF3 13.2 12.5 5.6% Ammonia 61.4 112.0 (45.2%) Phosphoric acid 4.9 6.5 (24.6%) Sulphuric acid 87.4 72.0 21.4%
For further information please contact:
OJSC PhosAgro+7 495 231 2747Irina Evstigneeva, Head of Corporate Finance and Investor RelationsTimur Belov, Press OfficerM:CommunicationsSam VanDerlipvanderlip@mcomgroup.com+7 495 363 2845Notes to Editors
PhosAgro is a leading global vertically integrated phosphate-based fertiliser producer. The Group focuses on the production of phosphate-based fertilisers, feed phosphate and high-grade phosphate rock (P2O5 content of not less than 35.7 percent), as well as ammonia and nitrogen-based fertilisers. The Group is the largest phosphate-based fertiliser producer in Europe, the largest producer of high-grade phosphate rock worldwide and the second largest MAP/DAP producer in the world (excluding China), according to Fertecon. PhosAgro is also a leading producer of MCP feed phosphates 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, representing over 75 years of production. The Group also controls substantial Al2O3 resources, and has 41% of Russia's rare earth oxides resources.
The Group'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 fertiliser 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. The Group is the only global vertically integrated fertilizer producer that derives approximately 90% of its consolidated gross profit from the phosphates segment. PhosAgro's 2011 IFRS revenue was USD 3.4 bln and EBITDA was USD 1.2 bln. The Сompany's net debt/EBITDA ratio was 0.43 at 31 December 2011.
For further information on PhosAgro please visit: www.PhosAgro.com
Phosagro S (PHOR)