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PhosAgro 2017 Fertilizer Output Exceeds 8.3 mln t

05.02.2018
PhosAgro 2017 Fertilizer Output Exceeds 8.3 mln t

Moscow – PhosAgro (Moscow Exchange, LSE: PHOR), one of the world’s leading vertically integrated phosphate-based fertilizer producers, announces its operational results for the three months (4Q) and full year (FY) ended 31 December 2017. Overall fertilizer production for 4Q and FY 2017 grew by more than 13% and 12% year-on-year to 2.3 and more than 8.3 million tonnes, respectively.

PhosAgro’s production and sales volumes are summarised in the tables below.

Production volumes by type

(‘000 mt)

4Q 2017

4Q 2016

Chg y/y

FY 2017

FY 2016

Chg y/y

Phosphate-based & MCP

1,692.3

1,582.1

7.0%

6,606.2

5,929.9

11.4%

Nitrogen-based

561.5

406.1

38.3%

1,734.6

1,495.0

16.0%

Total fertilizers

2,253.8

1,988.2

13.4%

8,340.8

7,424.9

12.3%

PhosRock & nepheline

2,641.0

2,456.6

7.5%

10,538.4

9,488.3

11.1%

Other products

30.4

36.2

-16.0%

119.9

138.9

-13.7%


Sales volumes by type

(‘000 mt)

4Q 2017

4Q 2016

Chg y/y

FY 2017

FY 2016

Chg y/y

Phosphate-based & MCP

1,599.1

1,418.1

12.8%

6,489.0

5,829.2

11.3%

Nitrogen-based

410.7

327.3

25.5%

1,615.8

1,394.0

15.9%

Total fertilizers

2,009.8

1,745.4

15.1%

8,104.8

7,223.2

12.2%

PhosRock & nepheline

1,000.2

838.4

19.3%

3,734.0

3,418.0

9.2%

Other products

73.2

50.2

45.8%

204.3

190.2

7.4%


Commenting on the 4Q 2017 operational results, PhosAgro CEO Andrey Guryev said: 

“I am very pleased that PhosAgro has entered 2018 in good shape, having passed major milestones in 2017. We continue to leverage our experience with successful organic growth, which remains the most cost-effective development option available to PhosAgro. It has enabled the Company to sustain its leadership position on the cash cost curve in our sector, and to be well positioned to benefit from the ongoing recovery in fertilizer prices. Last but not least, in 2017 we finalised the construction of our two major investment projects: the ammonia and granulated urea units in Cherepovets. Both facilities are running close to full capacity now, and produced more than 360 and 200 thousand tonnes of ammonia and granulated urea, respectively, in 2017. 

“As for production milestones, in 2017 the Company increased output of phosphate-based fertilizers by more than 10% year-on-year and achieved the new absolute record of 6.6 million tonnes. The most profitable NPK/NPS/PKS products now account for half of our phosphate-based portfolio. Production of nitrogen fertilizers grew by 16% year-on-year and exceeded 1.7 million tonnes. Finally, in the upstream division we managed to produce more than 9.5 million tonnes of phosphate rock, which is the highest level in the last 25 years.  

“Our sales strategy, which is based on the principle of ‘moving closer to our end customers’ is also a cornerstone of our long-term strategy. In 2017 we managed to increase the share of direct sales to more than 90%. On top of this, we continued to achieve double-digit growth in our priority markets. In 2017, we managed to increase overall sales to Russia and the CIS by almost 20% year-on-year, to 3.1 million tonnes; sales in Europe grew by 30% year-on-year to 1.8 million tonnes and Latin American sales were up by 16% year-on-year to 1.6 million tonnes.

“Looking ahead to market conditions in 2018, we remain optimistic on price dynamics on the back of several factors: a likely decrease in exports from China due to the spike in coal prices, tighter environmental regulation and the potential launch of the 5.5 million tonnes strategic spring stockpiling programme; a substantial decrease in stocks in India; and healthy demand in Latin America, coupled with the closure of the Plant City facility by Mosaic. We believe that the recovery in phosphate prices that kicked off in 4Q 2017, driven by inflation in the main feedstock prices (ammonia and sulphur), should continue through the beginning of the spring season for key markets.” 

The table below provides a breakdown of production volumes by major product:

Production volumes

('000 MT)

4Q 2017

4Q 2016

Chg y/y

FY 2017

FY 2016

Chg y/y

Apatit mine and beneficiation plant

Phosphate rock

2,379.2

2,239.3

6.2%

9,540.3

8,530.2

11.8%

Nepheline concentrate

261.8

217.3

20.5%

998.1

958.1

4.2%

Phosphate-based fertilizers

DAP/MAP

729.7

746.9

-2.3%

3,004.0

2,768.9

8.5%

NPK

692.9

588.0

17.8%

2,566.5

2,060.0

24.6%

NPS

134.9

104.8

28.7%

423.4

512.4

-17.4%

APP

40.0

40.0

0.0%

155.4

138.8

12.0%

MCP

78.3

83.8

-6.6%

354.4

338.6

4.7%

PKS

16.5

13.3

24.1%

99.8

85.1

17.3%

SOP

0.0

5.3

-100.0%

2.7

26.1

-89.7%

Nitrogen-based fertilizers

AN

140.8

137.5

2.4%

496.4

458.9

8.2%

Urea

420.7

268.6

56.6%

1,238.2

1,036.1

19.5%

Other products

AlF3

12.1

11.6

4.3%

47.0

46.0

2.2%

STPP

18.3

24.6

-25.6%

72.9

92.9

-21.5%

Feed stock

Ammonia

503.4

314.1

60.3%

1,454.9

1,198.6

21.4%

Phosphoric acid

591.6

591.0

0.1%

2,469.2

2,261.5

9.2%

Sulphuric acid

1,390.4

1,275.3

9.0%

5,437.8

4,926.1

10.4%


The table below provides a breakdown of sales volumes by major product:

Sales volumes

('000 mt)

4Q 2017

4Q 2016

Chg y/y

FY 2017

FY 2016

Chg y/y

Apatit mine and beneficiation plant

Phosphate rock

734.1

608.5

20.6%

2,732.2

2,448.3

11.6%

Nepheline concentrate

266.1

229.9

15.7%

1,001.8

969.7

3.3%

Phosphate-based fertilizers

DAP/MAP

695.8

637.6

9.1%

2,963.9

2,696.4

9.9%

NPK

570.5

502.9

13.4%

2,488.8

2,043.5

21.8%

NPS

199.9

151.8

31.7%

409.8

517.3

-20.8%

APP

35.2

19.9

76.9%

170.7

115.4

47.9%

MCP

90.0

92.7

-2.9%

350.4

338.5

3.5%

PKS

7.8

7.8

0.0%

101.2

90.1

12.3%

SOP

0.0

5.4

-100.0%

4.2

28.0

-85.0%

Nitrogen-based fertilizers

AN

76.7

65.9

16.4%

476.0

375.5

26.8%

Urea

334.0

261.4

27.8%

1,139.8

1,018.5

11.9%

Other products

AlF3

13.1

12.2

7.4%

49.4

46.0

7.4%

STPP

20.9

19.8

5.6%

81.1

96.1

-15.6%


* Excluding intra-group sales 
** Excluding feedstock
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