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PhosAgro Fertilizer Sales up 4% y-o-y in 1H 2014

25 July 2014

Moscow – PhosAgro (Moscow Exchange, LSE: PHOR), a leading global vertically integrated phosphate-based fertilizer producer, announces its production results for the six months ended 30 June 2014.


Total fertilizer production and sales increased year-on-year in 1H 2014 by 3.4% and 3.9%, respectively. Production of phosphate-based fertilizer for 1H 2014 increased by 3.2%, while production of nitrogen-based fertilizers increased by 4.4% year-on-year.


PhosAgro’s production and sales volumes for the six months ended 30 June 2014 are summarized in the tables below.


Production volumes by type

(kmt)

1H 2014

1H 2013

Change y-o-y

Phosphate-based fertilizers

2,378.4

2,305.6

3.2%

Nitrogen-based fertilizers

704.6

675.2

4.4%

TOTAL fertilizers

3,083.0

2,980.8

3.4%

Apatit mine and beneficiation plant

4,323.0

4,373.8

(1.2%)

Other products**

78.5

74.1

5.9%


Sales volumes by type

(kmt)

1H 2014

1H 2013

Change y-o-y

Phosphate-based fertilizers

2,332.2

2,307.3

1.1%

Nitrogen-based fertilizers

749.2

659.6

13.6%

TOTAL fertilizers

3,081.4

2,966.9

3.9%

Apatit mine and beneficiation plant*

1,746.4

1,957.2

(10.8%)

Other products**

175.9

147.6

19.2%


Commenting on the 1H 2014 production results, PhosAgro CEO Andrey Guryev said: “We have once again maintained near-100% capacity utilisation throughout the first half of the year. Favorable market conditions and higher demand have enabled us to increase substantially our sales of both concentrated fertilizers and NPKs to Latin America and Russia; our sales volumes to these markets increased year-on-year by more than 70% and over 20%, respectively, during 1H 2014. We continue to adapt our product mix in response to demand and the pricing environment, which has significantly improved from last year – in first six months of 2014, DAP FOB Tampa prices have recovered by 18%, from USD 407 per tonne at the beginning of the year to USD 480 per tonne as of 30 June 2014.


“Looking forward to the remainder of 2014, we believe that the market remains strong, and we are seeing prices for DAP increasing to and above USD 500 per tonne in all markets, with FOB Tampa at USD 510 for the last two weeks, despite declining prices for the soft commodities basket. Both demand and supply side factors are supporting prices, with solid farmer economics combined with increased cash costs for all significant phosphate producers: ammonia is around USD 500 per tonne while sulphur continues to increase and is currently above USD 150 per tonne for most producers. Current market conditions give me confidence that PhosAgro, as the low cost producer, will deliver strong financial performance when we report later in August.”


The table below provides a breakdown of production volumes by major product for 1H 2014:


Production volumes

(kmt)

1H 2014

1H 2013

Change y-o-y

Apatit mine and beneficiation plant

Phosphate rock

3,920.8

3,895.2

0.7%

Nepheline concentrate

402.2

478.6

(16.0%)

Phosphate-based fertilizers

DAP/MAP

1,156.5

1,092.7

5.8%

NPK

951.4

863.2

10.2%

NPS

80.6

149.3

(46.0%)

APP

47.7

45.3

5.3%

MCP

126.5

123.9

2.1%

SOP

15.7

31.2

(49.7%)

Nitrogen-based fertilizers

AN

157.8

182.3

(13.4%)

NP

58.3

33.3

75.1%

Urea

488.5

459.6

6.3%

Other products

AlF3

14.4

14.1

2.1%

STPP

64.1

60.0

6.8%

Feed stock

Ammonia

575.1

521.2

10.3%

Phosphoric acid (kt P2O5)

945.2

874.8

8.0%

Sulphuric acid (kt monohydrate)

2,189.8

2,187.3

0.1%


The table below provides a breakdown of sales volumes by major product for 1H 2014:


Sales volumes

(kmt)

1H 2014

1H 2013

Change y-o-y

Apatite mine and beneficiation plant

Phosphate rock*

1,340.1

1,479.4

(9.4%)

Nepheline concentrate

406.3

477.8

(15.0%)

Phosphate-based fertilizers

DAP/MAP

1,157.3

1,061.7

9.0%

NPK

890.6

845.3

5.4%

NPS

101.9

199.3

(48.9%)

APP

43.2

46.6

(7.3%)

MCP

123.0

121.0

1.7%

SOP

16.2

33.4

(51.5%)

Nitrogen-based fertilizers

AN

185.7

196.5

(5.5%)

NP

43.8

17.4

151.7%

Urea

519.7

445.7

16.6%

Other products

AlF3

14.5

13.6

6.6%

STPP

61.8

57.3

7.9%

Ammonia

7.8

3.3

136.4%

Phosphoric acid

26.3

14.1

86.5%

Sulphuric acid

65.5

59.3

10.5%



* Excluding intra-group sales

** Excluding feed stock