PhosAgro shows good results despite low prices
During the nine-month period of 2020, PhosAgro managed to maintain its revenue at the level of the same period last year — almost 195 billion rubles (approximately $2.55 billion) despite low sales prices for nitrogen and phosphorus fertilizers. The company’s free cash flow grew by 20.9% to 39.7 billion rubles (approx. $519.4 million).
The sales volume of mineral fertilizers increased by 9.9% to 7.9 million tons, including phosphorus fertilizers by 14.7% to 6.124 million tons.
“In the third quarter, we showed further growth in financial results. Revenue increased to the level of the previous year amid the growth in production volumes and low prices for basic raw materials. As a result, EBITDA margin exceeded 38%,” noted PhosAgro CEO Andrey Guryev. “Efficient management of circulating capital and the sale of finished product inventories allowed us to achieve significant growth in free cash flow, which exceeded 19 billion rubles (approx. $248.6 million), which is 5 times more than in the same period last year.”