PhosAgro, Moscow, reported a small uptick in first-half fertilizer production, while fertilizer sales were flat versus the year-ago period.
Fertilizer output increased by 0.7 percent to 5.06 million mt, up from 5.02 million mt, with the company citing capacity upgrades to increase production of NPK fertilizers as behind the uptick.
Six-month sales of fertilizers totalled 5.16 million mt, a marginal dip (0.5 percent) on the previous year’s 5.19 million mt. However, sales of nitrogen-based fertilizer increased 8 percent to 1.41 million mt, up from the year-ago1.31 million mt, on the back of strong seasonal demand.
Fertilizer sales in the second quarter amounted to 2.29 million mt, a 4 percent decline on the prior-year’s 2.4 million mt. The company blamed a delay in the start of seasonal demand in India due to a late decision on subsidies and “the relatively small level of subsidies.” This, it said, had postponed some sales to the third quarter.
Second-quarter sales of phosphate-based fertilizers fell by 7 percent to 1.67 million mt, down from the year-ago 1.79 million mt. PhosAgro cited “the high base” in the comparable period, when the decrease in fertilizer production in China and India enabled the company not only to sell stocks carried over from the first quarter, but also to reduce its winter stocks. It noted that sales in the second-quarter had remained at “a normal level” despite the sharp increase in product prices.
Sales of nitrogen-based fertilizers in the second quarter increased by 3 percent, to 626,300 mt, up from the year-ago 606,100 mt. PhosAgro said sales rose for all grades of nitrogen-based fertilizers, driven by both high seasonal demand and the affordability of fertilizers for end-users.
Regarding the outlook for sales, PhosAgro CEO Andrey Guryev in the short term expects the traditional seasonal increase in demand in the Indian and Brazilian markets to support global demand for fertilizers, which, he said, “may help keep fertilizer prices at current levels.”
The CEO highlighted the company’s output profile this year as “continuing to move in the direction of a greater share of high-margin complex NPK fertilizers.
“Over the first half of the year, we increased production of these fertilizers by more than 11 percent year-on-year,” he said. “This demonstrates the soundness of the company’s development strategy, which is aimed at increasing our presence in premium market segments by offering customers comprehensive solutions.”
PhosAgro produced 1.54 million mt of NPK fertilizers in the first six months of 2021, up from 1.39 million mt in the same year-ago period. First-half sales of NPK fertilizers increased by 4.5 percent to 1.42 million mt, up from 1.36 million mt.
The company is celebrating its 20th anniversary this year, and this week, the 10th anniversary of the listing of its shares and GDRs on the Moscow and London Stock Exchanges.
PhosAgro fertilizer production and sales volumes (‘000 mt)
| 1H-2021 | 1H-2020 | % change | 2Q-2021 | 2Q-2020 | % change | |
| Production | ||||||
| Phosphate-based fertilizers and MCP | 3,825.5 | 3,807.5 | 0.5 | 1,842.4 | 1,869.6 | (1.5) |
| Nitrogen-based fertilizers | 1,231.6 | 1,215.2 | 1.3 | 600.2 | 597.8 | 0.4 |
| Total fertilizers | 5,057.1 | 5,022.7 | 0.7 | 2,442.6 | 2,467.4 | (1.0) |
| Sales | ||||||
| Phosphate-based fertilizers and MCP | 3,743.6 | 3,876.7 | (3.4) | 1,667.1 | 1,789.4 | (6.8) |
| DAP/MAP | 1,692.7 | 1,745.6 | (3.0) | 815.3 | 820.7 | (0.7) |
| NPK | 1,418.2 | 1,357.3 | 4.5 | 607.1 | 575.7 | 5.5 |
| NPS | 309.2 | 419.7 | (26.3) | 100.5 | 220.3 | (54.4) |
| APP | 104.2 | 109.8 | (5.1) | 40.8 | 46.7 | (12.6) |
| MCP | 211.8 | 199.5 | 6.2 | 98.1 | 102.1 | (3.9) |
| PKS | 7.5 | 44.8 | (83.3) | 5.3 | 23.9 | (77.8) |
| Nitrogen-based fertilizers | 1,413.6 | 1,308.9 | 8.0 | 623.3 | 606.1 | 3.3 |
| AN | 438.9 | 394.4 | 11.3 | 186.1 | 158.4 | 17.5 |
| Urea | 934.7 | 911.9 | 2.5 | 430.5 | 445.1 | (3.3) |
| AS | 40.0 | 2.6 | 1,438.5 | 9.7 | 2.6 | 273.1 |
| Total fertilizer sales | 5,157.2 | 5,185.6 | (0.5) | 2,293.4 | 2,295.5 | (4.3) |