DJ PhosAgro Domestic Sales Rise 10% Year-on-Year to 2.93 mln Tonnes in 9M 2020
OJSC PhosAgro (PHOR)
PhosAgro Domestic Sales Rise 10% Year-on-Year to 2.93 mln Tonnes in 9M 2020
20-Oct-2020 / 17:30 MSK
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
For Immediate Release 20 October 2020
PhosAgro Domestic Sales Rise 10% Year-on-Year to 2.93 mln Tonnes in 9M 2020
Moscow - PhosAgro subsidiary PhosAgro-Region, which is Russia's largest
mineral fertilizer distribution network*, has increased fertilizer sales to
Russian farmers in 9M 2020 to 2.93 million tonnes, growth of 9.7%
year-on-year.
Sales of PhosAgro's own production increased by 6.4% year-on-year to 2.44
million tonnes. Phosphate-based fertilizer sales increased by 5.3%
year-on-year and accounted for over 80% of the total volume. Sales of
nitrogen-based fertilizers increased by 12% year-on-year to 416 thousand
tonnes. Products from other manufacturers sold via PhosAgro-Region's
distribution network amounted to around 480 thousand tonnes.
Growing demand for PhosAgro's phosphate-based fertilizers was driven by
their high efficiency, as well as work by plant cultivators to improve
Russian grain and the drought conditions prevalent in major agricultural
regions. Complex phosphate-based fertilizers containing sulphur made the
largest contribution to PhosAgro's growing domestic sales. These grades of
fertilizer help to produce milling wheat with higher protein and gluten
content. A prolonged heat wave led to a moisture deficit, which caused
record growth in demand for liquid complex fertilizers: regions in the Black
Earth Region increased consumption of liquid complex fertilizers by 2.8
times, in Siberia more than 2 times, and regions of southern Russia by 1.4
times.
Granular ammonium sulphate sales also saw stable growth in response to
demand from farmers. Production of this product was launched by the Balakovo
branch of Apatit this spring.
PhosAgro-Region continued to expand the geography of its operations in order
to work directly with Russian farmers. In the fall of 2020, the 18th
regional office of PhosAgro-Region opened in Ryazan. The growing demand for
mineral fertilizers from the region's agricultural industry and direct work
with producers mean that PhosAgro expects sales in the Ryazan region to
double over the next three years.
Work is underway to create the company's fifth distribution centre in the
Rostov region. This DC is planned to be launched on the eve of spring field
work in the South of Russia. Another PhosAgro-Region distribution centre in
one of the Black Earth regions is in its final stages of completion.
PhosAgro CEO Andrey Guryev said: "Domestic sales accounted for more than 30%
of PhosAgro's total sales in 9M 2020. We are supplying Russian customers for
the winter sowing season as a matter of priority.
"The high quality of this season's harvest, combined with implementation by
farmers of Russian Ministry of Agriculture initiatives to increase soil
fertility, give us confidence that fertilizer inventories will be build up
ahead of next year's field work. At the same time, we are carefully studying
the possible consequences of the moisture deficit observed at the start of
winter sowing, and we will be ready in the coming spring to offer effective
mineral nutrition systems to correct the state of crops using modern NPK
fertilizers.
"The Russian market is an invariable priority for us. In fact, innovative
mineral fertilizer grades enjoy high demand in Russia, with significant
interest in products that help to increase crops' resistance to adverse
weather and that ensure the high quality of key cultures. PhosAgro's
portfolio includes more than 50 fertilizer grades, 19 of which are complex
fertilizers that are unique for Russia, with microelements all in one
granule. Today we are conducting practical testing of these grades together
with one of the largest Russian agricultural holdings in a number of Black
Earth regions."
* by total volume of fertilizer sales and by fertilizer storage capacity.
About PhosAgro
PhosAgro (www.phosagro.ru [1]) 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. PhosAgro's environmentally friendly
fertilizers stand out for their high efficiency, and they do not lead to the
contamination of soils with heavy metals.
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, over 50 grades of
fertilizers, feed phosphates, ammonia, and sodium tripolyphosphate, which
are used by customers in 102 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: MSCM
TIDM: PHOR
LEI Code: 25340053KRUNNYUWF472
OAM Categories: 2.2. Inside information
Sequence No.: 86247
EQS News ID: 1142000
End of Announcement EQS News Service
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