For Immediate Release 24 July 2014
PhosAgro Fertilizer Sales up 4% y-o-y in 1H 2014
Moscow - PhosAgro (Moscow Exchange, LSE: PHOR), a leading global vertically
integrated phosphate-based fertilizer producer, announces its production
results for the six months ended 30 June 2014.
Total fertilizer production and sales increased year-on-year in 1H 2014 by 3.4%
and 3.9%, respectively. Production of phosphate-based fertilizer for 1H 2014
increased by 3.2%, while production of nitrogen-based fertilizers increased by
4.4% year-on-year.
PhosAgro's production and sales volumes for the six months ended 30 June 2014
are summarized in the tables below.
Production volumes by type
(kmt) 1H2014 1H2013 Change y-o-y
Phosphate-based fertilizers 2,378.4 2,305.6 3.2%
Nitrogen-based fertilizers 704.6 675.2 4.4%
TOTAL fertilizers 3,083.0 2,980.8 3.4%
Apatit mine and beneficiation 4,323.0 4,373.8 (1.2%)
plant
Other products** 78.5 74.1 5.9%
Sales volumes by type
(kmt) 1H2014 1H2013 Change y-o-y
Phosphate-based fertilizers 2,332.2 2,307.3 1.1%
Nitrogen-based fertilizers 749.2 659.6 13.6%
TOTAL fertilizers 3,081.4 2,966.9 3.9%
Apatit mine and beneficiation 1,746.4 1,957.2 (10.8%)
plant*
Other products** 175.9 147.6 19.2%
Commenting on the 1H 2014 production results, PhosAgro CEO Andrey Guryev said:
"We have once again maintained near-100% capacity utilisation throughout the
first half of the year. Favorable market conditions and higher demand have
enabled us to increase substantially our sales of both concentrated fertilizers
and NPKs to Latin America and Russia; our sales volumes to these markets
increased year-on-year by more than 70% and over 20%, respectively, during 1H
2014. We continue to adapt our product mix in response to demand and the
pricing environment, which has significantly improved from last year - in first
six months of 2014, DAP FOB Tampa prices have recovered by 18%, from USD 407
per tonne at the beginning of the year to USD 480 per tonne as of 30 June 2014.
"Looking forward to the remainder of 2014, we believe that the market remains
strong, and we are seeing prices for DAP increasing to and above USD 500 per
tonne in all markets, with FOB Tampa at USD 510 for the last two weeks, despite
declining prices for the soft commodities basket. Both demand and supply side
factors are supporting prices, with solid farmer economics combined with
increased cash costs for all significant phosphate producers: ammonia is around
USD 500 per tonne while sulphur continues to increase and is currently above
USD 150 per tonne for most producers. Current market conditions give me
confidence that PhosAgro, as the low cost producer, will deliver
strong financial performance when we report later in August."
The table below provides a breakdown of production volumes by major product for
1H 2014:
Production volumes
(kmt) 1H2014 1H2013 Change y-o-y
Apatit mine and beneficiation plant
Phosphate rock 3,920.8 3,895.2 0.7%
Nepheline concentrate 402.2 478.6 (16.0%)
Phosphate-based fertilizers
DAP/MAP 1,156.5 1,092.7 5.8%
NPK 951.4 863.2 10.2%
NPS 80.6 149.3 (46.0%)
APP 47.7 45.3 5.3%
MCP 126.5 123.9 2.1%
SOP 15.7 31.2 (49.7%)
Nitrogen-based fertilizers
AN 157.8 182.3 (13.4%)
NP 58.3 33.3 75.1%
Urea 488.5 459.6 6.3%
Other products
AlF3 14.4 14.1 2.1%
STPP 64.1 60.0 6.8%
Feed stock
Ammonia 575.1 521.2 10.3%
Phosphoric acid (kt P2O5) 945.2 874.8 8.0%
Sulphuric acid (kt 2,189.8 2,187.3 0.1%
monohydrate)
The table below provides a breakdown of sales volumes by major product for 1H
2014:
Sales volumes
(kmt) 1H2014 1H2013 Change y-o-y
Apatite mine and beneficiation plant
Phosphate rock* 1,340.1 1,479.4 (9.4%)
Nepheline concentrate 406.3 477.8 (15.0%)
Phosphate-based fertilizers
DAP/MAP 1,157.3 1,061.7 9.0%
NPK 890.6 845.3 5.4%
NPS 101.9 199.3 (48.9%)
APP 43.2 46.6 (7.3%)
MCP 123.0 121.0 1.7%
SOP 16.2 33.4 (51.5%)
Nitrogen-based fertilizers
AN 185.7 196.5 (5.5%)
NP 43.8 17.4 151.7%
Urea 519.7 445.7 16.6%
Other products
AlF3 14.5 13.6 6.6%
STPP 61.8 57.3 7.9%
Ammonia 7.8 3.3 136.4%
Phosphoric acid 26.3 14.1 86.5%
Sulphuric acid 65.5 59.3 10.5%
* Excluding intra-group sales
** Excluding feed stock
For further information please contact:
OJSC PhosAgro
Irina Evstigneeva, Head of Corporate Finance and Investor Relations
ir@phosagro.ru
+7 495 231 3115
Timur Belov, Press Officer
+7 495 232 9689
EM
Sam VanDerlip
vanderlip@em-comms.com
t: +44 7554 993 032
t: +7 499 918 3134
Notes 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 second 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 2013 IFRS revenue was over USD 3.3 bln and EBITDA was USD 752 mln.
The Сompany's net debt/EBITDA ratio was 1.8 at 31 December 2013.
For further information on PhosAgro please visit:
www.PhosAgro.com