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OJSC PhosAgro (PHOR)
PhosAgro 9M 18 Fertilizer Output up by 10% y-o-y
31-Oct-2018 / 12:30 CET/CEST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer / publisher is solely responsible for the content of this
announcement.
For Immediate Release 31 October 2018
PhosAgro 9M 18 Fertilizer Output up by 10% y-o-y
Moscow - PhosAgro (Moscow Exchange, LSE: PHOR), one of the world's leading
vertically integrated phosphate-based fertilizer producers, announces its
operational results for the three months (3Q) and nine months (9M) ended 30
September 2018. Total fertilizer production and sales for 3Q 2018 increased
by 2% and 9% year-on-year, to respective volumes of 2.1 and 2.2 million
tonnes. Production for 9M 2018 increased by 10% year-on-year to almost 6.7
million tonnes.
PhosAgro's production and sales volumes are summarised in the tables below:
Production volumes by type
('000 mt) 3Q 3Q 2017 Chg y/y 9M 2018 9M 2017 Chg y/y
2018
Phosphate-based 1,678. 1,683.6 (0.3%) 5,111.0 4,911.2 4.1%
& MCP 9
Nitrogen-based 456.5 405.5 12.6% 1,570.0 1,173.1 33.8%
Total 2,135. 2,089.1 2.2% 6,681.0 6,084.3 9.8%
fertilizers 4
PhosRock & 2,682. 2,668.1 0.5% 8,246.0 7,897.4 4.4%
nepheline 1
Other products 55.3 35.1 57.5% 151.7 92.2 64.5%
Sales volumes by type
('000 mt) 3Q 3Q 2017 Chg y/y 9M 2018 9M 2017 Chg y/y
2018
Phosphate-based 1,743. 1,715.7 1.6% 5,142.5 4,885.6 5.3%
& MCP 5
Nitrogen-based 458.2 309.4 48.1% 1,725.2 1,205.1 43.2%
Total 2,201. 2,025.1 8.7% 6,867.7 6,090.7 12.8%
fertilizers 7
PhosRock & 921.3 901.4 2.2% 2,845.3 2,733.8 4.1%
nepheline
Other products 60.2 56.1 7.3% 185.2 135.3 36.9%
Commenting on the 3Q 2018 operational results, PhosAgro CEO Andrey Guryev
said:
"PhosAgro remains focused on organic growth, which, together with solid
contributions from newly launched urea and ammonia lines, has helped the
Company to leverage its flexible sales strategy and maximise returns in the
current 'deficit' market environment. With solid operating performance for
the first nine months of the year and lower levels of maintenance expected
in the fourth quarter, we are comfortable confirming our annual production
guidance of nearly 9 million tonnes of finished products. Last but not
least, PhosAgro is continuously seeking opportunities to make further
improvements on the costs front. In the third quarter, our upstream
optimisation programme enabled us to increase the recovery ratio for
phosphate rock beneficiation to over 93% at Beneficiation Plant #3, which is
the absolute maximum level ever achieved at the plant.
"In downstream, we increased production of MAP and NPK by 14% year-on-year
of the back of robust demand from Latin America and India, as well as
seasonal demand in Russia. This was partially offset by declines in DAP and
NPS volumes. In our mid-stream operations, we increased ammonia output by
13% year-on-year after the launch of our new ammonia line in 2017, although
3Q 2018 performance numbers were partially impacted by maintenance in
September, which also affected urea production.
"In 9M 2018, sales to CIS markets decreased by almost 60% year-on-year after
the halt of deliveries to Ukraine, which was fully offset by a more than 40%
year-on-year increase in sales to Europe and 30% year-on-year growth in
Latin America thanks to our expanded on-the-ground presence with new local
offices. Sales to North America and India rose by more than 50%
year-on-year.
"Looking ahead to market conditions through the year end, we see the first
signs of liquidity cooling and a certain price slowdown prior to
November-December, which is typically the down season for markets. At the
same time, in our view the depth of the correction will be limited due to 1)
further steepening in the global cash cost curve on the back of strong
pricing in ammonia and sulphur, with a continued deficit on the supply side;
2) the high season in China, with local producers focused on the domestic
market; and 3) the beginning of the new buying season in Latin America,
which is likely in December or January. Meanwhile, the ramp-up of new units
in Saudi Arabia remains the main wild card for the sector, with any delays
likely to push the market further into deficit."
The table below provides a breakdown of production volumes by major product:
Production volumes
('000 MT) 3Q 2018 3Q 2017 Chg y/y 9M 2018 9M 2017 Chg y/y
Apatit mine and beneficiation plant
Phosphate 2,452.6 2,414.2 1.6% 7,514.3 7,161.1 4.9%
rock
Nepheline 229.5 253.9 (9.6%) 731.7 736.3 (0.6%)
concentrat
e
Phosphate-based fertilizers
DAP/MAP 700.5 746.8 (6.2%) 2,220.3 2,274.3 (2.4%)
NPK 772.2 676.3 14.2% 2,106.2 1,873.6 12.4%
NPS 64.6 135.0 (52.1%) 298.3 288.5 3.4%
APP 52.4 30.2 73.5% 162.4 115.4 40.7%
MCP 83.4 82.5 1.1% 263.6 276.1 (4.5%)
PKS 5.8 12.8 (54.7%) 60.2 83.3 (27.7%)
Nitrogen-based fertilizers
AN 100.7 93.4 7.8% 379.9 355.6 6.8%
Urea 355.8 312.1 14.0% 1,190.1 817.5 45.6%
Other products
STPP 26.9 23.2 15.9% 78.2 54.6 43.2%
Other 28.4 11.9 138.7% 73.5 37.6 95.5%
Feed stock
Ammonia 411.9 364.1 13.1% 1,401.0 951.5 47.2%
Phosphoric 628.8 641.0 (1.9%) 1,923.4 1,877.6 2.4%
acid
Sulphuric 1,344.2 1,398.6 (3.9%) 4,287.6 4,047.4 5.9%
acid
The table below provides a breakdown of sales volumes by major product:
Sales volumes
('000 mt) 3Q 2018 3Q 2017 Chg y/y 9M 2018 9M 2017 Chg y/y
Apatit mine and beneficiation plant
Phosphate 695.3 653.9 6.3% 2,119.3 1,998.1 6.1%
rock
Nepheline 226.0 247.5 (8.7%) 726.0 735.7 (1.3%)
concentrat
e
Phosphate-based fertilizers
DAP/MAP 732.5 769.0 (4.7%) 2,267.5 2,268.1 (0.0%)
NPK 750.9 749.2 0.2% 2,060.9 1,918.3 7.4%
NPS 95.1 52.5 81.1% 322.1 209.9 53.5%
APP 57.9 34.1 69.8% 154.9 135.5 14.3%
MCP 85.8 85.0 0.9% 262.8 260.4 0.9%
PKS 21.3 25.9 (17.8%) 74.3 93.4 (20.4%)
Nitrogen-based fertilizers
AN 86.1 30.3 184.2% 459.1 399.3 15.0%
Urea 372.1 279.1 33.3% 1,266.1 805.8 57.1%
Other products
STPP 25.6 22.0 16.4% 75.6 60.2 25.6%
Other 34.6 34.1 1.5% 109.6 75.1 45.9%
* Excluding intra-group sales
** Excluding feedstock
For further information please contact:
PJSC PhosAgro
Alexander Seleznev, Head of Investor Relations
ir@phosagro.ru
+7 495 232 96 89 ex 21 87
Timur Belov, Press Officer
+7 495 232 9689
EM
Sam VanDerlip
vanderlip@em-comms.com
+44 7554 993 032
+7 499 918 3134
Notes to Editors
PhosAgro is one of the world's leading vertically integrated phosphate-based
fertilizer producers in terms of production volumes of phosphate-based
fertilizers and high-grade phosphate rock with a P2O5 content of 39% and
higher.
The Company is the largest phosphate-based fertilizer producer in Europe (by
total combined capacity for DAP/MAP/NP/NPK/NPS), the largest producer of
high-grade phosphate rock with a P2O5 content of 39%, a top-three producer
of MAP/DAP globally, one of the leading producers of feed phosphates (MCP)
in Europe, and the only producer in Russia, and Russia's only producer of
nepheline concentrate (according to the RAFP).
PhosAgro's main products include phosphate rock, 39 grades of fertilizers,
feed phosphates, ammonia, and sodium tripolyphosphate, which are used by
customers in 100 countries spanning all of the world's inhabited continents.
The Company's priority markets outside of Russia and the CIS are Latin
America, Europe and Asia.
PhosAgro's shares are traded on the Moscow Exchange, and Global Depositary
Receipts ("GDRs") for shares trade on the London Stock Exchange (under the
ticker PHOR). Since 1 June 2016, the Company's GDRs have been included in
the MSCI Russia and MSCI Emerging Markets indexes.
More information about PhosAgro can be found on the website: www.phosagro.ru
[1]
ISIN: US71922G2093
Category Code: UPD
TIDM: PHOR
LEI Code: 635400F8A3KGJIIBIK95
OAM Categories: 2.2. Inside information
Sequence No.: 6379
EQS News ID: 739887
End of Announcement EQS News Service
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(END) Dow Jones Newswires
October 31, 2018 07:30 ET (11:30 GMT)
