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OJSC PhosAgro (PHOR)
PhosAgro 1Q 2019 Fertilizer Sales Rise by 5.2% y-o-y to 2.5 mln t
26-Apr-2019 / 11:00 CET/CEST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
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announcement.
For Immediate Release 26 April 2019
PhosAgro 1Q 2019 Fertilizer Sales Rise by 5.2% y-o-y to 2.5 mln t
Moscow - PhosAgro (MOEX/LSE ticker: PHOR), one of the world's leading
vertically integrated phosphate-based fertilizer producers, increased
fertilizer production volumes by 1.2% year-on-year to 2.3 million tonnes in
1Q 2019. Sales volumes for the same period grew by 5.2% year-on-year to 2.5
million tonnes.
PhosAgro's production and sales volumes are summarised in the tables below.
Production volumes by type
('000 mt) 1Q 2019 1Q 2018 Chg y/y
Phosphate-based & MCP 1,777.6 1,757.2 1.2%
Nitrogen-based 567.6 560.8 1.2%
Total fertilizers 2,345.2 2,318.0 1.2%
PhosRock & nepheline 2,928.1 2,789.7 5.0%
Other products 48.3 42.9 12.6%
Sales volumes by type
('000 mt) 1Q 2019 1Q 2018 Chg y/y
Phosphate-based & MCP 1,929.0 1,753.2 10.0%
Nitrogen-based 617.4 667.5 -7.5%
Total fertilizers 2,546.4 2,420.7 5.2%
PhosRock & nepheline 1,121.7 955.9 17.3%
Other products 49.2 38.3 28.5%
Commenting on the 1Q 2019 operating results, PhosAgro CEO Andrey Guryev
said:
"PhosAgro got off to a strong start in the first quarter of 2019, with 10%
year-on-year growth in phosphate segment sales, mainly driven by high levels
of market activity and inventory release. Inventories rose in 4Q 2018 due to
slow European demand for fertilizers as a result of bad weather conditions
in the region. However, our flexible sales policy enabled PhosAgro to sell
to the markets where we can achieve the best netback prices. Global
fertilizer markets look relatively balanced at present, which means that we
are comfortable providing fertilizer production guidance for 2019 of 9.4
million tonnes.
"Fertilizer sales rose by 5% year-on-year in 1Q 2019, mainly driven by the
sell-down of inventories accumulated in the last months of 2018 and
relatively high demand for phosphate-based products. Seasonal demand
recovery and our well-developed sales network, with seven trading offices
across Europe, enabled us to keep phosphate volumes flat year-on-year and
increase sales of urea by 70% year-on-year. The strongest growth was in
North America, where phosphate sales advanced by 25% year-on-year, driven by
the expectation of solid demand from agricultural producers. Phosphate sales
to Latin America were up by 10% year-on-year. Sales of phosphate-based
fertilizers in Russia increased by 14% year-on-year, as farmers started
preparations earlier, ahead of high season on export markets. At the same
time, sales of AN decreased by 32% year-on-year in the first quarter, due to
the early start of Russia's high-season in 4Q 2018, which is our main market
for this product.
"As expected, prices for phosphate-based fertilizers gradually softened
during the course of 1Q 2019, but remained flat year-on-year, pushing
feedstock prices lower. Looking ahead, phosphate prices will remain under
the pressure in 2Q 2019 due to oversupply in the United States amid major
flooding in March. This, combined with the relatively strong Rupee, caused
India to accelerate its DAP imports at the end of 1Q 2019. The main
supportive factor for the market next months should be seasonal demand
recovery in Latin America, especially in Brazil. In the mid-term, the
introduction of new capacities by OCP and Ma'aden is still the main source
of downside risk."
The table below provides a breakdown of production volumes by major product:
Production volumes by type
('000 mt) 1Q 2019 1Q 2018 Chg y/y
Apatit mine and beneficiation plant
Phosphate rock 2,637.3 2,523.9 4.5%
Nepheline concentrate 290.8 265.8 9.4%
Phosphate-based fertilizers
DAP/MAP 812.9 798.1 1.9%
NPK 599.8 646.6 -7.2%
NPS 198.3 132.7 49.4%
APP 49.6 51.7 -4.1%
MCP 96.5 88.2 9.4%
PKS 20.5 39.9 -48.6%
Nitrogen-based fertilizers
AN 145.3 143.5 1.3%
Urea 422.3 417.3 1.2%
Other products
STPP 26.2 24.8 5.6%
Other 22.1 18.1 22.1%
Feed stock
Ammonia 491.6 496.1 -0.9%
Phosphoric acid 673.9 656.1 2.7%
Sulphuric acid 1,498.4 1,483.9 1.0%
The table below provides a breakdown of sales volumes by major product:
Sales volumes by type
('000 mt) 1Q 2019 1Q 2018 Chg y/y
Apatit mine and beneficiation plant
Phosphate rock 825.7 691.4 19.4%
Nepheline concentrate 296.0 264.5 11.9%
Phosphate-based fertilizers
DAP/MAP 944.3 808.7 16.8%
NPK 655.9 646.7 1.4%
NPS 169.5 135.7 24.9%
APP 61.8 47.5 30.1%
MCP 87.3 85.6 2.0%
PKS 10.2 29.0 -64.8%
Nitrogen-based fertilizers
AN 170.6 249.1 -31.5%
Urea 446.8 418.4 6.8%
Other products
STPP 25.9 23.7 9.3%
Other 23.3 14.6 59.6%
For further information please contact:
PJSC 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
+7 499 918 3134
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
Sequence No.: 8370
EQS News ID: 803827
End of Announcement EQS News Service
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April 26, 2019 05:00 ET (09:00 GMT)
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