OJSC PhosAgro (PHOR)
PhosAgro's Domestic Fertilizer Sales Rise by 14.3% year-on-year to 1.65
million tons in 1H 2019
26-Jul-2019 / 13:00 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer / publisher is solely responsible for the content of this
announcement.
For Immediate Release 26 July 2019
PhosAgro's Domestic Fertilizer Sales Rise by 14.3% year-on-year to 1.65
million tons in 1H 2019
Moscow - Russia's largest mineral fertilizer distribution network
PhosAgro-Region (a PhosAgro subsidiary) increased the total volume of
mineral fertilizer sales to Russian agricultural producers by 14.3%
year-on-year to 1.65 million tonnes in 1H 2019. Sales of PhosAgro mineral
fertilizers to the domestic market increased by 17.4% year-on-year to 1.4
million tonnes in 1H 2019, while the volume sales of third-party products
remained unchanged year-on-year.
According to the Russian Association of Fertilizer Producers, in
January-June 2019 Russian farmers purchased 5.46 million tonnes of mineral
fertilizers, an increase of 14.1% year-on-year.
PhosAgro CEO Andrey Guryev said: "Russian farmers are priority consumers of
PhosAgro mineral fertilizers. We are growing faster than the market, with
PhosAgro products representing every third tonne sold to domestic
agricultural producers. The continued rapid expansion of Russian
agricultural exports is one of the key growth drivers, as it requires more
efficient use of arable land to increase the volume and competitiveness of
crop production. The growth in demand for PhosAgro's environmentally
friendly products is partly due to projects in the field of creating a brand
of Russian-made environmentally friendly products, the production of which
should only use technologies that are safe for human health. PhosAgro is an
active participant in this work, providing the domestic market with mineral
fertilizers that are produced from unique natural pure raw materials. This
gives our customers a competitive advantage, and consumers in Russia and
abroad can have confidence in the safety of Russian food."
PhosAgro Deputy CEO for Sales and Marketing Sergey Pronin noted: "Russia's
regions have a growing interest in PhosAgro's on-the-ground presence near
agricultural enterprises where we can operate in close cooperation with
farms. This issue has repeatedly arisen during working meetings with
regional leaders in the framework of the St Petersburg International
Economic Forum, and during the All-Russian Field Day, where PhosAgro is a
general partner. In 1H 2019 PhosAgro laid the foundation for more dynamic
work in remote areas that have no fertilizer production located nearby. To
this end agreements were reached with the two largest regions of Siberia to
open new regional offices of our Russian distribution network.
In the first half of 2019, PhosAgro-Region invested around RUB 250 million
into the development of its network, which made it possible to simplify the
delivery of mineral fertilizers to farmlands in a number of regions. By the
beginning of the summer season, the capacity for the storage and delivery of
liquid fertilizers directly to the fields was significantly expanded, and
now PhosAgro's liquid complex fertilizers are available even to relatively
small farms. It is also worth noting the growth in demand for complex
fertilizers with a high content of active ingredients, the use of which can
ensure crop quality, as well as consistently strong interest in both
PhosAgro's traditional fertilizer grades, as well as new NPK grades that
have been introduced to the market over the past two years.
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.com [1]
ISIN: US71922G2093
Category Code: MSCL
TIDM: PHOR
LEI Code: 635400F8A3KGJIIBIK95
Sequence No.: 14692
EQS News ID: 847153
End of Announcement EQS News Service
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