28 October 2013 10:53 [Source: ICIS news]
LONDON (ICIS)--A weak set of third-quarter revenue figures from Turkish fertilizer maker Bagfas has highlighted the challenging world fertilizer markets facing producers at the moment, an investment bank said on Monday.
Bagfas’ foreign fertilizer sales revenues fell back 63% year on year in the third quarter to Turkish lira (TL) 7.5m ($3.8m, €2.7m), with domestic sales revenues edging down 1% to TL70.1m, Prague-based WOOD & Company noted.
The company was nevertheless able to break even at the net level, reporting a profit of Turkish lira TL0.26m against TL3.4m in the third quarter of last year, it added.
“While Q3 met the consensus expectations, the reported figures proved weak, underlining the difficult operating environment,” the bank said.
WOOD and other analysts say major world grain prices have hit a sustained downward trend that has reduced international demand for fertilizers by hurting farmers’ purchasing power.
Bagfas is currently constructing plants that will give it the production capacity to replace Turkey’s annual imports of around 300,000 tonnes of ammonium nitrate (AN) and calcium ammonium nitrate (CAN) fertilizers with its own products.
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