30 Jul 2015 10:00
OJSC PHOSAGRO - PhosAgro Fertilizer Sales up 10% y-o-y in 1H 2015OJSC PHOSAGRO - PhosAgro Fertilizer Sales up 10% y-o-y in 1H 2015
PR Newswire
London, July 30
| For Immediate Release | 30 July 2015 |
PhosAgro Fertilizer Sales up 10% y-o-y in 1H 2015
Moscow – PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, announces its production results for 1H 2015.
Total fertilizer production and sales increased year-on-year in 1H 2015 by 9.7%, both reaching 3.4 million tonnes. Production of phosphate-based fertilizers and feed phosphates in 1H 2015 increased by 12.3%, to 2.7 million tonnes, while production of nitrogen-based fertilizers increased by 0.8% year-on-year to 0.7 million tonnes.
PhosAgro’s production and sales volumes for 1H 2015 are summarized in the tables below.
| Production volumes by type | |||
| (kmt) | 1H 2015 | 1H 2014 | Change y-o-y |
| Phosphate-based fertilizers and MCP | 2,671.7 | 2,378.4 | 12.3% |
| Nitrogen-based fertilizers | 709.9 | 704.6 | 0.8% |
| TOTAL fertilizers | 3,381.6 | 3,083.0 | 9.7% |
| Apatit mine and beneficiation plant | 4,385.3 | 4,323.0 | 1.4% |
| Other products** | 76.9 | 78.5 | (2.0%) |
| Sales volumes by type | |||
| (kmt) | 1H 2015 | 1H 2014 | Change y-o-y |
| Phosphate-based fertilizers and MCP | 2,664.9 | 2,332.2 | 14.3% |
| Nitrogen-based fertilizers | 715.7 | 749.2 | (4.5%) |
| TOTAL fertilizers | 3,380.6 | 3,081.4 | 9.7% |
| Apatit mine and beneficiation plant* | 1,428.2 | 1,746.4 | (18.2%) |
| Other products** | 115.5 | 175.9 | (34.3%) |
Commenting on the 1H 2015 operational results, PhosAgro CEO Andrey Guryev said:
“PhosAgro achieved another set of record fertilizer production results thanks to continued modernisations of production facilities and higher capacity utilisation. With upgraded phosphoric acid capacities and greater output levels from our granulation lines, we managed to increase phosphate-based fertilizer and feed phosphate production by 12.3%.
“On the demand side, we were happy to see a healthy recovery on our priority domestic market. Following the Russian Government’s announcement of a programme to support agricultural producers, sales increased by 16% in 2Q 2015 compared to 1Q 2015.
“India has led the spot market so far in 2015, with DAP purchases up nearly threefold year-on-year in the first half, which has enabled PhosAgro to renew sales to this region. The Latin American market performance was weaker as a result of low soybean prices and economic challenges facing the region.
“Overall, the phosphate-based fertilizer price environment has been positive in 1H 2015. The average price of DAP during the period was USD 476 per tonne (FOB Tampa), compared to USD 465 per tonne in 1H 2014. At the same time, current exchange rates continue to have a significant positive influence on PhosAgro’s free cash flow and dividend payments to shareholders.”
The table below provides a breakdown of production volumes by major product for the 1H 2015:
| Production volumes | |||
| (kmt) | 1H 2015 | 1H 2014 | Change y-o-y |
| Apatit mine and beneficiation plant | |||
| Phosphate rock | 3,940.7 | 3,920.8 | 0.5% |
| Nepheline concentrate | 444.6 | 402.2 | 10.5% |
| Phosphate-based fertilizers and MCP | |||
| DAP/MAP | 1,382.5 | 1,156.5 | 19.5% |
| NPK | 942.2 | 951.4 | (1.0%) |
| NPS | 100.0 | 80.6 | 24.1% |
| APP | 49.6 | 47.7 | 4.0% |
| MCP | 128.1 | 126.5 | 1.3% |
| PKS | 51.4 | 0.0 | - |
| SOP | 17.9 | 15.7 | 14.0% |
| Nitrogen-based fertilizers | |||
| AN | 239.2 | 157.8 | 51.6% |
| Urea | 470.7 | 488.5 | (3.6%) |
| Other products | |||
| AlF3 | 13.9 | 14.4 | (3.5%) |
| STPP | 63.0 | 64.1 | (1.7%) |
| Feed stock | |||
| Ammonia | 545.0 | 575.1 | (5.2%) |
| Phosphoric acid (kt P2O5) | 1,050.0 | 945.2 | 11.1% |
| Sulphuric acid (kt monohydrate) | 2,368.0 | 2,189.8 | 8.1% |
The table below provides a breakdown of sales volumes by major product for the 1H 2015:
| Sales volumes | |||
| (kmt) | 1H 2015 | 1H 2014 | Change y-o-y |
| Apatite mine and beneficiation plant | |||
| Phosphate rock* | 987.5 | 1 340.1 | (26.3%) |
| Nepheline concentrate | 440.7 | 406.3 | 8.5% |
| Phosphate-based fertilizers and MCP | |||
| DAP/MAP | 1,353.5 | 1,157.3 | 17.0% |
| NPK | 953.2 | 890.6 | 7.0% |
| NPS | 114.9 | 101.9 | 12.9% |
| APP | 48.1 | 43.2 | 11.3% |
| MCP | 119.9 | 123.0 | (2.5%) |
| PKS | 57.3 | 0.0 | - |
| SOP | 18.0 | 16.2 | 11.1% |
| Nitrogen-based fertilizers | |||
| AN | 262.9 | 185.7 | 41.6% |
| Urea | 452.8 | 519.7 | (12.9%) |
| Other products | |||
| AlF3 | 13.5 | 14.5 | (6.9%) |
| STPP | 59.9 | 61.8 | (3.1%) |
| Ammonia | 3.1 | 7.8 | (60.3%) |
| Phosphoric acid | 25.1 | 26.3 | (4.6%) |
| Sulphuric acid | 13.9 | 65.5 | (78.8%) |
* 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: http://www.phosagro.com/
Phosagro S (PHOR)