Net profit at Poland's ZAP climbs 24% on improved fertilizer prices

15 May 2012 15:41  [Source: ICIS news]

LONDON (ICIS)--Net profit at Zaklady Azotowe Pulawy (ZAP) rose to zlotych (Zl) 244.7m ($72.8m, €56.6m) in the third quarter of the 2011/2012 fiscal year from Zl 197.8m a year ago, on a marked improvement in fertilizer prices, the Polish company said on Tuesday.

Sales revenues reached Zl 1.1bn compared to Zl 897.6m in the third quarter of the 2010/2011 year, while operating profit climbed to Zl 363.9 from Zl 314.9m, added ZAP, a fertilizer, caprolactam (capro) and melamine producer.

“The main factors influencing the financial results, which are noticeably better than what was seen in the third quarter of the previous fiscal year, was the rise in the prices of fertilizer products in Poland and higher sales of our products, especially urea,” said ZAP CEO Pavel Jarczewski.

Domestic sales revenues of ZAP products soared 43.6%, while export sales revenues edged down 2.7%, year on year, the company said.

Looking ahead, ZAP cautioned that the Polish fertilizer market was a target for cheap products from Russian producers that benefit from low-cost gas feedstock and increasing access to sales channels in Poland thanks to the granting of World Trade Organisation (WTO) membership to Russia.

Weakening demand for chemical products from the Polish furniture manufacturing sector, the output of which contracted 11.3% year on year in March, and the automaking sector, which shrank 10.5% in the same month, could also impact on ZAP's next set of results, the company added.

($1 = €0.78)
($1 = Zl 3.36, €1 = Zl 4.32)


By: Will Conroy
+44 20 8652 3214



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