DJ PhosAgro FY 2018 Fertilizer & MCP Output Rose 8% y-o-y to 9.0 mln t
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OJSC PhosAgro (PHOR)
PhosAgro FY 2018 Fertilizer & MCP Output Rose 8% y-o-y to 9.0 mln t
06-Feb-2019 / 10:30 CET/CEST
Dissemination of a Regulatory Announcement that contains inside information
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For Immediate Release 06 February 2019
PhosAgro FY 2018 Fertilizer & MCP Output Rose 8% y-o-y to 9.0 mln t
Moscow - PhosAgro (MOEX/LSE ticker: PHOR), one of the world's leading
vertically integrated phosphate-based fertilizer producers, increased its FY
2018 fertilizer and feed phosphates production by 7.6% year-on-year to 9.0
million tonnes. Sales for the same period grew by 9.0% year-on-year to 8.8
million tonnes. In 4Q 2018, fertilizer production rose by 1.8% year-on-year
to 2.3 million tonnes while sales marginally decreased by 2.4% year-on-year
to 2.0 million tonnes.
PhosAgro's production and sales volumes are summarised in the tables below.
Production volumes by type
('000 mt) 4Q 4Q 2017 Chg y/y FY 2018 FY 2017 Chg y/y
2018
Phosphate-based 1,741. 1,692.3 2.9% 6,852.0 6,603.5 3.8%
& MCP 0
Nitrogen-based 553.0 561.5 -1.5% 2,123.0 1,734.6 22.4%
Total 2,294. 2,253.8 1.8% 8,975.0 8,338.1 7.6%
fertilizers 0
PhosRock & 2,807. 2,641.0 6.3% 11,053. 10,538.4 4.9%
nepheline 0 0
Other products 52.3 30.4 72.0% 204.0 122.6 66.4%
Sales volumes by type
('000 mt) 4Q 4Q 2017 Chg y/y FY 2018 FY 2017 Chg y/y
2018
Phosphate-based 1,492. 1,599.2 -6.7% 6,634.9 6,484.8 2.3%
& MCP 4
Nitrogen-based 470.4 410.7 14.5% 2,195.6 1,615.8 35.9%
Total 1,962. 2,009.9 -2.3% 8,830.5 8,100.6 9.0%
fertilizers 8
PhosRock & 1,102. 1,000.2 10.2% 3,947.3 3,734.0 5.7%
nepheline 0
Other products 47.6 34.0 40.1% 182.3 134.7 35.3%
Commenting on the FY 2018 operating results, PhosAgro CEO Andrey Guryev
said:
"The fact that 2018 was PhosAgro's best year ever in terms of production at
both the upstream and downstream divisions is something we are all proud of.
We achieved our ambitious production guidance of 9 million tonnes for the
year, though we have no intention to rest after delivering a strong set of
results for 2018, and we plan to increase further the production of
fertilizers by up to 5% in 2019. Thanks to our sales strategy that aims to
be 'closer to our customer,' PhosAgro made further progress on widening its
direct access to priority markets, bolstering sales by 9% year-on-year.
Finally, after the first full year of operations of PhosAgro's new ammonia
unit, our production site at Cherepovets is now fully self-sufficient in
this crucial feedstock, which has solidified our leadership position on the
industry cash cost curve."
In 4Q 2018, PhosAgro's output of phosphate-based products was up by 2.9%
y-o-y to 1.7 million tonnes, primarily driven by higher MAP production (up
by 24% year-on-year), which was made possible by the successful
modernisation of midstream capacities (both phosphoric and sulphuric acid)
in Balakovo. Phosphate rock output in 4Q 2018 increased by 7% year-on-year
to 2.6 million tonnes following completion of the modernisation programme at
Beneficiation Plant #3. In FY 2018, underground mining accounted for almost
80% of all mining work and had a positive impact on our phosphate rock cash
cost (underground mining is nearly two times cheaper than open-pit mining).
Ammonia production was down by 8% year-on-year in the fourth quarter due to
scheduled maintenance work.
Sales of fertilizers rose by 9% year-on-year to 8.8 million tonnes in FY
2018. The strongest growth was in North America, where sales rose by 78%
year-on-year to 1.1 million tonnes due to a deficit of phosphates following
the closure of capacities in Florida. Shipments to Latin America increased
by 24% year-on-year to 2.0 million tonnes in FY 2018, thanks to our strong
sales of nitrogen-based products (up by 59% year-on-year) directly to
end-customers. European sales rose by 11% year-on-year to 2.1 million
tonnes, driven by our strategic approach to move deeper into the
distribution chain and expand our on-the-ground presence with new local
offices. Volumes in Russia, our priority domestic market, were up slightly,
by 5% year-on-year to 2.4 million tonnes in FY 2018.
Looking ahead to 2019 market conditions, the fertilizer industry
traditionally starts the new year with the off-season slowdown putting
pressure on prices. We believe that prices for phosphate-based fertilizers
will remain under pressure throughout 1Q 2019. A recovery in prices are
expected in 2Q 2019, driven by the beginning of the spring application
season in major agricultural regions. Overall, price dynamics in 2019 should
be flattish, amid more stable global fertilizer supply than in 2018.
The table below provides a breakdown of production volumes by major product:
Production volumes by type
('000 mt) 4Q 2018 4Q 2017 Chg y/y FY 2018 FY 2017 Chg y/y
Apatit mine and beneficiation plant
Phosphate 2,552.7 2,379.2 7.3% 10,067.0 9,540.4 5.5%
rock
Nepheline 254.3 261.8 -2.9% 986.0 998.1 -1.2%
concentrat
e
Phosphate-based fertilizers
DAP/MAP 774.7 729.7 6.2% 2,995.0 3,004.0 -0.3%
NPK 692.8 692.9 0.0% 2,799.0 2,566.5 9.1%
NPS 120.7 134.9 -10.5% 419.0 423.4 -1.0%
APP 53.6 40.0 34.0% 216.0 155.4 39.0%
MCP 92.4 78.3 18.0% 356.0 354.4 0.5%
PKS 6.8 16.5 -58.8% 67.0 99.8 -32.9%
Nitrogen-based fertilizers
AN 153.1 140.8 8.7% 533.0 496.4 7.4%
Urea 399.9 420.7 -4.9% 1,590.0 1,238.2 28.4%
Other products
STPP 26.8 18.3 46.4% 105.0 72.9 44.0%
Other 25.5 12.1 110.7% 99.0 49.7 99.2%
Feedstock
Ammonia 465.0 503.4 -7.6% 1,866.0 1,454.9 28.3%
Phosphoric 622.6 591.6 5.2% 2,546.0 2,469.2 3.1%
acid
Sulphuric 1,444.4 1,390.4 3.9% 5,732.0 5,437.8 5.4%
acid
The table below provides a breakdown of sales volumes by major product:
Sales volumes by type
('000 mt) 4Q 2018 4Q 2017 Chg y/y FY 2018 FY 2017 Chg y/y
Apatit mine and beneficiation plant
Phosphate 844.9 734.1 15.1% 2,964.2 2,732.2 8.5%
rock
Nepheline 257.1 266.1 -3.4% 983.1 1,001.8 -1.9%
concentrat
e
Phosphate-based fertilizers
DAP/MAP 645.1 695.8 -7.3% 2,912.6 2,963.9 -1.7%
NPK 603.7 570.5 5.8% 2,664.6 2,488.8 7.1%
NPS 101.4 199.9 -49.3% 423.5 409.8 3.3%
APP 54.5 35.2 54.8% 209.4 170.7 22.7%
MCP 84.4 90.0 -6.2% 347.2 350.4 -0.9%
PKS 3.3 7.8 -57.7% 77.6 101.2 -23.3%
Nitrogen-based fertilizers
AN 136.2 76.7 77.6% 595.3 476.0 25.1%
Urea 334.2 334.0 0.1% 1,600.3 1,139.8 40.4%
Other products
STPP 23.0 20.9 10.0% 98.6 81.1 21.6%
Other 24.6 13.1 87.8% 83.7 53.6 56.4%
For further information please contact:
PhosAgro
Alexander Seleznev, Head of Investor Relations Department
+7 495 232 9689 ext 2187
ir@phosagro.ru
Timur Belov, Press Officer
+7 495 232 9689
EM
Sam VanDerlip
vanderlip@em-comms.com
+44 7554 993 032
Dmitriy Zhadan
zhadan@em-comms.com
+7 916 770-89-09
About the Company
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: TST
TIDM: PHOR
LEI Code: 635400F8A3KGJIIBIK95
OAM Categories: 2.2. Inside information
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