Russia's PhosAgro posts sharp rise in Q1 fertilizer sales, output

24 April 2013 13:16  [Source: ICIS news]

LONDON (ICIS)--PhosAgro posted a 24.7% year-on-year rise in first quarter sales to 1.63m tonnes on Wednesday as the Russian fertilizer producer benefited from a big jump in urea output created by the start-up of a new production unit.

The Moscow-based company said overall sales of phosphate-based fertilizers jumped 21.3% to 1.29m tonnes from 1.06m tonnes in the first three months of 2012.

Sales of nitrogen-based fertilizers like urea and ammonia surged 40.2% year-on-year to 336,700 tonnes as a new 500,000 tonnes/year urea plant that came online in late 2012 boosted output.

A breakdown of the company's production volumes show PhosAgro's ammonium nitrate (AN) output climbed 17.1% year on year to 112,800 tonnes, while output of nitrogen phosphorous potassium (NPK) fertilizers grew 4.3% year on year to 433,700 tonnes. Nitrogen phosphate and sulphur (NPS) fertilizers production rose sharply to 113,400 tonnes from 24,800 tonnes in the first quarter of 2012.

Production of diammonium phosphate (DAP) and monoammonium phosphate (MAP) output fell 5.2% from the year-ago period to 529,800 tonnes as the supplier focused on other products. Phosphate rock production slipped 1.7% year-on-year to 1.97m tonnes.

Commenting on the latest production results, PhosAgro CEO Maxim Volkov said: "We achieved growth in fertilizer production and sales of 17.6% and 24.7%, [respectively], during the first quarter primarily because of our ability to adapt our flexible production lines to market demand in just two working shifts.

"Despite DAP prices continuing to be under downward pressure during the first quarter, we kept capacity utilisation at near 100%, with significant year-on-year increases in volumes.

"Going forward we plan to further enhance our production flexibility by introducing new grades of complex NPK fertilizers, and by expanding our flexible production capacity to enable us to increase processing of our own phosphate rock."

Separately on Wednesday, PhosAgro announced a 9% rise in annual net profit to rouble (Rb) 24.5bn ($778m, €611m) on a 5% rise in annual revenue to Rb105.3bn.

PhosAgro Production Volumes

(kmt)

1Q 2013

1Q 2012

Change y-o-y

Apatit mine and beneficiation plant

Phosphate rock

1,972.1

2,005.4

(1.7%)

Nepheline concentrate

254.1

266.4

(4.6%)

Phosphate-based fertilizers

DAP/MAP

529.8

558.8

(5.2%)

NPK

433.7

416.0

 4.3%

NPS

113.4

24.8

 357.3%

APP

24.5

17.3

 41.6%

MCP

62.1

62.4

(0.5%)

SOP

15.1

-

 -

Nitrogen-based fertilizers

AN

112.8

96.3

 17.1%

Urea

233.5

120.6

 93.6%

Other products

AlF3

7.0

6.6

 6.1%

STPP

33.7

-

 -

Feedstock

Ammonia

263.7

255.4

 3.2%

Phosphoric acid (kt P2O5)

439.8

408.0

 7.8%

Sulphuric acid (kt monohydrate)

1,102.0

1,128.2

(2.3%)


($1 = €0.77, $1 = Rb31.5, €1 = Rb40.13)


By: Richard Ewing
+44 208 652 3214



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