Sulphur and sulph. acid 4,016 1,063 277.8% 6,062 2,258 168.5% Potassium 3,038 2,820 7.7% 6,299 6,026 4.5% Natural gas 2,886 3,124 -7.6% 6,876 6,921 -0.7% Ammonium sulphate 208 184 13.0% 621 831 -25.3% Salaries and social contributions 3,325 3,527 -5.7% 7,559 7,114 6.3% Electricity 1,410 1,530 -7.8% 3,211 3,236 -0.8% Fuel 1,217 903 34.8% 2,723 2,047 33.0% Products for resale 1,980 1,666 18.8% 5,293 4,755 11.3% Customs duties 396 204 94.1% 1,138 564 101.8% Freight, port and stevedoring expenses 6,327 4,564 38.6% 12,817 9,064 41.4% Russian Railways' tariffs and operators' fees 2,475 2,935 -15.7% 5,599 5,917 -5.4% Other 286 184 55.4% 589 406 45.1% Total 46,318 39,287 17.9% 98,526 83,949 17.4%
Cost of sales in 2Q 2021 increased by 17.9% year-on-year largely due to a considerable increase in feedstock prices: -- Expenses for materials and services increased by 9.1% year-on-year to RUB 10.4 billion (USD 140 million) due to an
increase in the amount of planned repairs and a slight increase in costs associated with the extraction of
phosphorus ore. -- Expenses for raw materials increased by 56.6% year-on-year to RUB 12.9 billion (USD 174 million):
? a 160.0% increase in ammonia costs to RUB 2.8 billion (USD 38 million) as a result of higher prices for this
feedstock;
? a 277.8% increase in expenses for sulphur and sulphuric acid to RUB 4.0 billion (USD 54 million) as a result of
higher global prices for sulphur;
? a 7.6% decrease in natural gas costs to RUB 2.9 billion (USD 39 million) due to lower sales of fertilizer
grades high in ammonia. -- Spending on customs duties increased by 94.1% year-on-year to RUB 0.4 billion due to an increase in the share of
exports in the Company's sales structure. -- Freight, port and stevedoring expenses increased by 38.6% to RUB 6.3 billion (USD 85 million) as a result of higher
transportation tariffs and the devaluation of the rouble against the dollar at the beginning of the year.
Administrative and selling expenses
2Q 2Q Chng 1H 1H Chng
RUB mln 2021 2020 % %
2021 2020
Administrative expenses 4,997 4,150 20.4% 9,889 8,802 12.3%
Salaries and social contributions 3,281 2,646 24.0% 6,442 5,728 12.5%
Professional services 414 534 -22.5% 838 953 -12.1%
Amortisation 336 342 -1.8% 692 678 2.1%
Other 966 628 53.8% 1,917 1,443 32.8%
Selling and marketing expenses 1,684 1,402 20.1% 3,284 3,020 8.7%
Salaries and social contributions 936 713 31.3% 1,910 1,582 20.7%
Materials and services 353 336 5.1% 588 693 -15.2%
Amortisation 395 353 11.9% 786 745 5.5% Administrative and selling expenses in 2Q 2021 increased by 20.3% year-on-year to RUB 6.7 billion (USD 90 million). The main drivers behind this increase were changes in payroll and social contributions associated with the indexation of employee salaries, compensation payments and changes in exchange rates.
Market outlook
The expected seasonal activity in the main fertilizer markets in Brazil and India in 3Q combined with the projected decrease in exports from China in order to supply the domestic market will help support prices.
Conference call and webcast:
PhosAgro will hold a conference call and webcast today at 16:00 London time (18:00 Moscow; 11:00 New York).
The call will be held in English, with simultaneous translation into Russian on a separate line.
Webcast link:
https://www.webcast-eqs.com/phosagro20210806
Participant dial-in numbers:
Russia:
+7 495 213 1767 8 800 500 9283
United Kingdom:
+44 (0) 330 336 9125 0800 358 6377
United States:
+1 323-334-2082
866-575-6539
Conference ID numbers:
In English: 1398933
In Russian: 1846165
Contacts
PJSC PhosAgro
Andrey Serov, Head of the Investor Relations Department
+7 495 231 2747 ext. ext. 2183
ir@phosagro.ru
Timur Belov, Press Officer
+7 495 231 2747 ext. 2652
pr@phosagro.ru
EM
Sam VanDerlip
vanderlip@em-comms.com
+44 207 002 7859
About PhosAgro
PhosAgro (www.phosagro.com) 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 102 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.
Six months ended Three months ended
30 June 30 June
RUB million 2021 2020 2021 2020
Revenues 176,261 123,996 88,682 59,938
Cost of Group products sold (93,233) (79,194) (44,338) (37,621)
Cost of products for resale (5,293) (4,755) (1,980) (1,666)
Gross profit 77,735 40,047 42,364 20,651
Administrative and selling overhead expenses (13,173) (11,822) (6,681) (5,552)
Taxes, other than income tax, net (2,997) (1,583) (1,479) (709)
Other expenses, net (1,521) (1,445) (864) (741)
Foreign exchange (loss)/gain from operating activities, net (766) 1,021 (864) (1,215)
Operating profit 59,278 26,218 32,476 12,434
Finance income 194 353 110 88
Finance costs (2,477) (2,873) (1,195) (1,435)
Foreign exchange gain/(loss) from financing activities, net 3,324 (16,946) 6,209 15,233
COVID-19 related expenses (218) (289) (99) (289)
Profit before tax 60,101 6,463 37,501 26,031
Income tax expense (11,449) (1,172) (7,193) (5,152)
Profit for the period 48,652 5,291 30,308 20,879
Attributable to:
Non-controlling interests* (15) 7 (6) 8
Shareholders of the Parent 48,667 5,284 30,314 20,871
Basic and diluted earnings per share (in RUB) 376 41 234 161
Other comprehensive (loss)/income
Items that may be reclassified subsequently
to profit or loss
Foreign currency translation difference (504) 1,534 (718) (1,052)
Other comprehensive (loss)/income for the period (504) 1,534 (718) (1,052)
Total comprehensive income for the period 48,148 6,825 29,590 19,827
Attributable to:
Non-controlling interests* (15) 7 (6) 8
Shareholders of the Parent 48,163 6,818 29,596 19,819
RUB million 30 June 2021 31 December 2020
Assets
Property, plant and equipment 226,404 220,031
Advances issued for property, plant and equipment 10,239 7,835
Deferred tax assets 8,459 7,462
Right-of-use assets 6,801 7,335
Non-current spare parts 4,526 4,308
Catalysts 2,536 2,292
Intangible assets 1,576 1,621
Other non-current assets 948 948
Investments in associates 582 556
Non-current assets 262,071 252,388
Trade and other receivables 20,945 17,515
Inventories 31,809 30,580
Cash and cash equivalents 27,109 8,460
VAT and other taxes receivable 8,658 10,285
Income tax receivable 463 479 (MORE TO FOLLOW) Dow Jones Newswires
August 06, 2021 10:30 ET (14:30 GMT)
