PJSC PhosAgro, Moscow, reported that it increased fertilizer production to 10.31 million mt in FY2021, a 3 percent increase over the previous year, while fertilizer sales were also up 3 percent, to 10.26 million mt.
The group cited increased production of DAP/MAP, NPK, and ammonium sulfate as driving the output growth, and high demand in its priority markets as behind the sales growth.
In FY2021, the group increased production of phosphate-based fertilizers by 4 percent year-over-year, to 7.89 million mt. The production of its main fertilizer grades, DAP/MAP and NPK, increased by 14 percent and 9.5 percent, respectively.
PhosAgro attributed the growth to an increase in the production of phosphoric and sulfuric acids, as well as the recovery in ammonia production following the completion of scheduled maintenance at the end of the third quarter.
It attributed the 3 percent year-over-year growth in FY2021 fertilizer sales to the strong demand for fertilizers in the main markets throughout the year against a background of high crop prices, limited production of nitrogen-based fertilizers amid high natural gas prices in Europe, and the impact of decreased fertilizer exports from China.
Sales of phosphate-based fertilizers amounted to 7.76 million tons in FY2021, an increase of 1 percent year-over-year. The group cited “consistently high” demand in its sales markets, such as Russia and Latin America, as well as an increase in MAP production volumes following the launch of a new facility at the group’s Volkhov site.
Sales of nitrogen-based fertilizers increased by more than 9 percent in FY2021 to 2.49 million mt, driven by strong demand for these products in Russia and in global markets amid a decrease in the production of nitrogen-based fertilizers in Europe in late 2021
PhosAgro’s fourth-quarter fertilizers sales were up 21 percent on the year to 2.47 million mt, with the group citing the favorable price trends in the main world markets for phosphate- and nitrogen-based fertilizers, which enabled it to achieve this sales growth.
“Among the external factors that supported our operating performance during the quarter, I would like to highlight the consistently high demand for fertilizers in the Russian market, the increase in demand in the markets of Latin America and Europe, as well as the decrease in export supplies from China,” said PhosAgro CEO Andrey Guryev.
Sales of phosphate-based fertilizers increased by 23 percent year-over-year to 1.9 million mt in 4Q 2021, driven by the launch of new production capacities in Volkhov. This increase was due to both high seasonal demand in Europe and Latin America and higher sales to India, where pent-up demand was met.
Sales in the nitrogen segment increased by 14 percent year-over-year in 4Q 2021, to 566,700 mt. AN saw the biggest increase in sales, driven by both high seasonal demand and the affordability of fertilizers for end users.
Commenting on the market so far in 2022, Guryev said the beginning of the year has seen continued strong demand and high prices for phosphate-based fertilizers in India, while markets for nitrogen-based fertilizers are seeing a price correction in the wake of a busy period of import purchases in most major markets.
PhosAgro Fertilizer Production and Sales
| ‘000 mt | FY2021 | FY2020 | % Change | 4Q-2021 | 4Q-2020 | % change |
| Production | ||||||
| Phosphate-based fertilizers | 7,893.6 | 7,577.9 | +4 | 2,113,8 | 1,829.7 | +16 |
| Nitrogen-based fertilizers | 2,412.1 | 2,402.3 | +0.4 | 641.5 | 613.3 | +5 |
| Total fertilizers | 10,305.7 | 9,980.2 | +3 | 2,755.3 | 2,443.0 | +13 |
| Sales | ||||||
| Phosphate-based fertilizers | ||||||
| DAP/MAP | 3,564.5 | 3,203.4 | +11 | 957.8 | 535.5 | +79 |
| NPK | 3,011.1 | 2,924.6 | +3 | 700.2 | 690.7 | +3 |
| NPS | 566.8 | 912.2 | (38) | 75.6 | 192.7 | (61) |
| APP | 206.3 | 200.3 | +3 | 56.5 | 52.2 | +8 |
| MCP | 405.2 | 378.6 | +7 | 113.6 | 83.9 | +35 |
| PKS | 8.5 | 49.8 | (83) | 0 | 0.3 | (100) |
| Total | 7,762.4 | 7,668.9 | +1 | 1,903.7 | 1,545.3 | +23 |
| Nitrogen-based fertilizers | ||||||
| AN | 798.0 | 618.6 | +29 | 168.6 | 150.8 | +12 |
| Urea | 1,616.3 | 1,649.0 | (2) | 362.8 | 341.0 | +6 |
| AS | 80.2 | 18.1 | +343 | 35.3 | 7.7 | +358 |
| Total | 2,494.5 | 2,285.7 | +9 | 566.7 | 499.5 | +14 |
| Total fertilizers | 10,256.9 | 9,954.6 | +3 | 2,470.4 | 2,044.8 | +21 |