PhosAgro net profit raised by 77.2%
In the 2Q2020 PhosAgro revenue (compared to the 1Q2020) increased by 3.1% to 59.938 billion rubles (approximately $813.7 million), while the company’s net profit rocketed by 77.2% to 20.879 billion rubles (approx. $283.4 million).
Sales of phosphorus and nitrogen fertilizers produced by PhosAgro increased by 9.9% to 1.789 million tons and by 13.7% to 604 thousand tons, respectively. In general, the sale of mineral fertilizers expanded by 10.8% to 2.393 million tons.
“The company showed strong financial results in the second quarter. Revenue and EBITDA increased compared to the previous year, while EBITDA margin reached 34%,” said PhosAgro CEO Andrey Guryev.
“Such growth was mainly possible due to an increase in sales volumes amid the recovery in fertilizer prices and continued low prices for raw materials. After the completion of the Northern Hemisphere season, the efficient sales model allowed the company to redirect sales to export markets of Latin America and India. The increase in profitability was also facilitated by a decrease in production costs due to the transfer of part of scheduled repairs to the second half of the year.”