Sales volumes by type:
Sales volumes by category (kt) FY 2020 FY 2019 Chng, % 4Q 2020 4Q 2019 Chng, % Phosphate rock 3,151.8 3,256.4 -3.2% 742.2 857.9 -13.5% Nepheline concentrate 1,159.0 1,189.8 -2.6% 287.7 295.0 -2.5% TOTAL 4,310.8 4,446.2 -3.0% 1,029.9 1,152.9 -10.7% Phosphate-based fertilizers DAP/MAP 3,203.4 3,204.6 0.0% 535.5 694.8 -22.9% NPK 2,924.6 2,775.7 5.4% 680.7 670.2 1.6% NPS 912.2 616.0 48.1% 192.7 177.6 8.5% APP 200.3 198.4 1.0% 52.2 64.9 -19.6% MCP 378.6 377.4 0.3% 83.9 122.9 -31.7% PKS 49.8 82.9 -39.9% 0.3 8.1 -96.3% TOTAL 7,668.9 7,255.0 5.7% 1,545.3 1,738.4 -11,1% Nitrogen-based fertilizers AN 618.6 506.4 22.2% 150.8 115.0 31.1% Urea 1,649.0 1,690.9 -2.5% 341.0 422.0 -19.2% Ammonium sulphate 18.1 0.0 n/a 7.7 0.0 n/a TOTAL 2,285.7 2,197.3 4.0% 499.5 537.1 -7.0% TOTAL fertilizers 9,954.6 9,452.3 5.3% 2,044.8 2,275.5 -10.1% Other products STPP 93.3 103.5 -9.9% 22.4 25.9 -13.5% Other 90.4 82.2 10.0% 21.8 22.4 -2.7% TOTAL feedstocks 183.7 185.6 -1.0% 44.2 48.2 -8.3%
In FY 2020, sales of PhosAgro's phosphate-based fertilizers increased by 5.7% year-on-year to 7.7 million tonnes. The brisk growth in sales was supported by a favourable pricing environment and by the affordability of fertilizers for end users due to the increase in prices for the main agricultural crops. Other supporting factors included higher demand for NPK(S) fertilizers from India, where production was suspended in spring due to coronavirus restrictions.
In 4Q 2020, sales of PhosAgro's phosphate-based fertilizers decreased by 11.1% year-on-year to 1.5 million tonnes. This drop was mainly due to the high volume of carryover shipments at the end of 2020 and the Company's cautious approach amid strong price growth. In 4Q 2020, the Company also reduced supplies of DAP/MAP fertilizers to North America (in connection with a review of the petition Mosaic filed against suppliers of phosphate-based fertilizers from Morocco and Russia) and Europe (where price growth was lagging).
In FY 2020, sales of PhosAgro's nitrogen-based fertilizers increased by 4.0% year-on-year to 2.3 million tonnes. AN saw the biggest increase in sales (up 22.2% to 618.6 thousand tonnes), amid increased production of this type of fertilizer and the large size of Russia's agricultural sector.
Sales volumes by key markets:
Sales volumes by region Phosphate-based fertilizers (kt) FY 2020 FY 2019 Chng, % 4Q 2020 4Q 2019 Chng, % Russia 2,357.2 2,194.7 7.4% 328.7 268.1 22.6% Europe 2,037.0 2,098.7 -2.9% 479.4 580.2 -17.4% Latin America 1,142.6 1,033.8 10.5% 403.4 409.6 -1.5% India 924.9 566.7 63.2% 121.3 101.3 19.7% Africa 440.0 259.9 69.3% 110.2 109.6 0.5% North America 316.5 592.4 -46.6% 25.2 165.9 -84.8% CIS 302.7 367.5 -17.6% 55.7 53.9 3.3% Other 148.0 141.2 4.8% 21.4 49.8 -57.0% Total 7,668.9 7,254.9 5.7% 1,545.3 1,738.4 -11,1% Nitrogen-based fertilizers Russia 546.1 492.4 10.9% 120.0 121.1 -0.9% Europe 461.4 535.3 -13.8% 92.0 122.9 -25.1% Latin America 871.5 710.5 22.7% 206.0 163.1 26.3% North America 256.6 289.5 -11.4% 67.1 89.2 -24.8% CIS 11.9 13.4 -11.2% 0.3 0.0 n/a Other 138.2 156.3 -11.6% 14.1 40.8 -65.4% Total 2,285.7 2,197.4 4.0% 499.5 537.1 -7.0%
In FY 2020, domestic sales of PhosAgro's fertilizers increased by 8.0% year-on-year exceeding 2.9 million tonnes. This expansion was the result of increased supplies to Russian farmers amid growth in the country's agriculture sector as a whole.
In 4Q 2020, supplies of fertilizers to the Russian market increased by 15.3% year-on-year to 448.7 thousand tonnes.
Export sales of all types of fertilizers in FY 2020 increased by 4.2% to 7.1 million tonnes. This increase was largely due to the Company's robust sales system and the high quality and eco-efficiency of its fertilizers. Sales also got a boost from favourable weather conditions, the affordability of fertilizers for end users and the temporary halt in fertilizer production in India and China in spring due to the introduction of restrictive measures in connection with the coronavirus pandemic. All these factors enabled PhosAgro to increase sales in its main markets of Latin America, India and Africa.
Sales of phosphate-based fertilizers in the North America in FY 2020 amounted to about 316.5 thousand tonnes, a decrease of nearly 50% year-on-year. The drop was due to both an unfavourable price environment in the US market at the beginning of the year and the petition Mosaic filed against suppliers of phosphate-based fertilizers to the USA from Morocco and Russia. The flexibility of the Company's distribution network made it possible to ship these fertilizers, without loss, to other markets, including Canada and India.
Market highlights
Phosphate-based fertilizers
The phosphate-based fertilizer markets remained stable thanks, in part, to residual seasonal demand in India, Pakistan and Brazil, as well as the continued limited export supply from China, where supplies were directed towards the domestic market. The increase in global prices for the main types of agricultural products ensured that fertilizers remained as affordable as they have ever been in nearly every market for phosphate-based fertilizers. This factor ultimately neutralised the traditional off-season effect and helped support demand and higher prices for fertilizers towards the end of the year.
Urea/nitrogen fertilizers:
The global urea market was shaped by a series of large tenders in India, which, combined with growth in seasonal demand in Latin America and Southeast Asia, helped stabilise the balance of supply and demand in the market as a whole.
Contacts
PJSC PhosAgro
Andrey Serov, Head of the Investor Relations Department
+7 495 232 9689 ext. 2187
ir@phosagro.ru
Timur Belov, Press Officer
+7 495 232 9689 ext. 2652
EM
Sam VanDerlip
vanderlip@em-comms.com
+44 207 002 7859
About us
PhosAgro (www.phosagro.ru) is one of the world's leading vertically integrated phosphate-based fertilizer producers in terms of production volumes of phosphate-based fertilizers and high-grade phosphate rock with a P2O5 content of 39% and higher. PhosAgro's environmentally friendly fertilizers stand out for their high efficiency, and they do not lead to the contamination of soils with heavy metals.
The Company is the largest phosphate-based fertilizer producer in Europe (by total combined capacity for DAP/MAP/NP/ NPK/NPS), the largest producer of high-grade phosphate rock with a P2O5 content of 39%, a top-three producer of MAP/DAP globally, one of the leading producers of feed phosphates (MCP) in Europe, and the only producer in Russia, and Russia's only producer of nepheline concentrate (according to the RAFP).
PhosAgro's main products include phosphate rock, more than 50 grades of fertilizers, feed phosphates, ammonia, and sodium tripolyphosphate, which are used by customers in over 100 countries spanning all of the world's inhabited continents. The Company's priority markets outside of Russia and the CIS are Latin America, Europe and Asia.
PhosAgro's shares are traded on the Moscow Exchange, and global depositary receipts (GDRs) for shares trade on the London Stock Exchange (under the ticker PHOR). Since 1 June 2016, the Company's GDRs have been included in the MSCI Russia and MSCI Emerging Markets indexes.
More information about PhosAgro can be found on the website: www.phosagro.ru. -----------------------------------------------------------------------------------------------------------------------
ISIN: US71922G2093 Category Code: MSCH TIDM: PHOR LEI Code: 25340053KRUNNYUWF472 Sequence No.: 92437 EQS News ID: 1163958 End of Announcement EQS News Service =------------------------------------------------------------------------------------
(END) Dow Jones Newswires
January 28, 2021 04:01 ET (09:01 GMT)
