OJSC PhosAgro (PHOR)
PhosAgro 2Q 2019 Fertilizer and MCP Output up 5.8% y-o-y to 2.4 mln t
30-Jul-2019 / 15:00 CET/CEST
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For Immediate Release 30 July 2019
PhosAgro 2Q 2019 Fertilizer and MCP Output up 5.8% y-o-y to 2.4 mln t
Moscow - PhosAgro (MOEX/LSE ticker: PHOR), one of the world's leading
vertically integrated phosphate-based fertilizer producers, announces its
operating results for 2Q and 1H 2019. Overall output of phosphate-based and
nitrogen-based fertilizers in 2Q increased by 6.4% and 3.9% year-on-year
respectively, while sales declined by 3.9% year-on-year to 2.2 million
tonnes.
PhosAgro's production and sales volumes are summarised in the tables below.
Production volumes by type
('000 mt) 2Q '19 2Q '18 Chg y/y 1H '19 1H '18 Chg y/y
Phosphate-based 1,782. 1,674.9 6.4% 3,559.8 3,432.1 3.7%
& MCP 2
Nitrogen-based 574.2 552.7 3.9% 1,141.8 1,113.5 2.5%
Total 2,356. 2,227.6 5.8% 4,701.6 4,545.6 3.4%
fertilizers 4
PhosRock & 2,930. 2,774.2 5.6% 5,858.6 5,563.9 5.3%
nepheline 5
Other products 39.9 51.7 (22.8%) 86.9 92.4 (6.0%)
Sales volumes by type
('000 mt) 2Q '19 2Q '18 Chg y/y 1H '19 1H '18 Chg y/y
Phosphate-based 1,628. 1,646.7 (1.1%) 3,557.8 3,399.9 4.6%
& MCP 8
Nitrogen-based 530.9 600.5 (11.6%) 1,148.3 1,268.0 (9.4%)
Total 2,159. 2,247.2 (3.9%) 4,706.1 4,667.9 0.8%
fertilizers 7
PhosRock & 1,142. 968.0 18.0% 2,263.7 1,923.9 17.7%
nepheline 0
Other products 40.5 46.2 (12.3%) 89.7 83.3 7.7%
Commenting on the 2Q 2019 operating results, PhosAgro CEO Andrey Guryev
said:
"PhosAgro continued to deliver solid operational results in 2Q 2019, with
the completion of our optimisation programme unlocking additional midstream
production capacities and helping to maintain our leading position on the
industry cash cost curve. Following the record high 4.7 million tonnes of
fertilizers produced in the first half of the year, we reiterate our
full-year production guidance of nearly 9.4 million tonnes. We accelerated
our domestic sales, which is expected to last into the next quarter. In
addition, we significantly increased our presence in CIS markets,
demonstrating the advantages of our flexible sales strategy. The above
factors helped to mitigate negative market dynamics caused by bad weather
conditions in North America and higher than expected DAP exports from China,
where domestic demand was low.
"Our total fertilizer sales volumes declined by 3.9% year-on-year in the
second quarter, mainly due to a release of urea stocks in 2Q 2018. In 2Q
2019, our sales of NPK(S) and MAP, which are supportive of PhosAgro's
profitability, accounted for 39% and 16% of total sales volumes,
respectively.
"Our focus on the domestic market, where we continued to develop our
distribution network, helped us to achieve better sales results on early
recovery of seasonal demand. In 2Q 2019, domestic sales of fertilizers rose
by 37% year-on-year to 0.8 million tonnes and accounted for 36% of total
fertilizer sales volumes in comparison to 25% in 2Q 2018, which was
supportive for cash flow generation.
"Our strategy of going into the distribution chain and establish a presence
on the ground with new local offices has enabled us to respond quickly to
early signs of demand recovery in Europe, where we increased shipments by
16% year-on-year to almost 0.5 million tonnes in 2Q 2019.
"In 2Q 2019, prices for phosphate-based fertilizers continued their
correction due to ramp up of new units at OCP and Ma'aden, and high activity
of Chinese fertilizer exporters on the backdrop of low domestic demand.
Looking ahead to market conditions next quarters, negative dynamics may be
overrun by the approaching autumn season in our main markets of Europe and
the CIS, as well as progress on the reduction of DAP capacities in China
after Chinese producers announced their intention to slow down operating
rates by 4 million tonnes over the next 12 months."
The table below provides a breakdown of production volumes by major product:
Production volumes by type
('000 mt) 2Q '19 2Q '18 Chg y/y 1H '19 1H '18 Chg y/y
Apatit mine and beneficiation plant
Phosphate 2,621.0 2,537.8 3.3% 5,258.3 5,061.7 3.9%
rock
Nepheline 309.5 236.4 30.9% 600.3 502.2 19.5%
concentrat
e
Phosphate-based fertilizers
DAP/MAP 799.0 721.7 10.7% 1,611.9 1,519.8 6.1%
NPK 701.6 687.4 2.1% 1,301.4 1,334.0 (2.4%)
NPS 113.1 101.0 12.0% 311.4 233.7 33.2%
APP 36.0 58.3 (38.3%) 85.6 110.0 (22.2%)
MCP 89.4 92.0 (2.8%) 185.9 180.2 3.2%
PKS 43.1 14.5 197.2% 63.6 54.4 16.9%
Nitrogen-based fertilizers
AN 138.5 135.7 2.1% 283.8 279.2 1.6%
Urea 435.7 417.0 4.5% 858.0 834.3 2.8%
Other products
STPP 25.9 26.5 (2.3%) 52.1 51.3 1.6%
Other 14.0 25.2 (44.4%) 34.8 41.1 (15.3%)
Feed stock
Ammonia 494.0 493.0 0.2% 985.6 989.1 (0.4%)
Phosphoric 675.3 638.5 5.8% 1,349.2 1,294.6 4.2%
acid
Sulphuric 1,521.9 1,459.5 4.3% 3,020.3 2,943.4 2.6%
acid
The table below provides a breakdown of sales volumes by major product:
Sales volumes by type
('000 mt) 2Q '19 2Q '18 Chg y/y 1H '19 1H '18 Chg y/y
Apatit mine and beneficiation plant
Phosphate 831.4 732.5 13.5% 1,657.1 1,423.9 16.4%
rock
Nepheline 310.6 235.5 31.9% 606.6 500.0 21.3%
concentrat
e
Phosphate-based fertilizers
DAP/MAP 658.2 727.3 (9.5%) 1,602.5 1,536.0 4.3%
NPK 681.2 663.4 2.7% 1,337.1 1,310.0 2.1%
NPS 117.0 91.1 28.4% 286.5 226.8 26.3%
APP 39.4 49.5 (20.4%) 101.2 97.0 4.3%
MCP 93.7 91.1 2.9% 181.0 176.7 2.4%
PKS 39.3 24.3 61.7% 49.5 53.3 (7.1%)
Nitrogen-based fertilizers
AN 104.5 124.0 (15.7%) 275.1 373.1 (26.3%)
Urea 426.4 476.5 (10.5%) 873.2 894.9 (2.4%)
Other products
STPP 25.3 25.9 (2.3%) 51.2 49.6 3.2%
Other 15.2 20.3 (25.1%) 38.5 33.7 14.2%
For further information please contact:
PJSC PhosAgro
Andrey Serov, Head of Investor Relations Department
+7 495 232 9689 ext 2183
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.: 15102
EQS News ID: 848891
End of Announcement EQS News Service
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