Polish fertilizer and chemicals group Grupa Azoty, SA, Tarnów, expects to post a group net loss of Pln1.02 billion (approximately $235 million at current exchange rates) for the fourth quarter of 2022, and a negative EBITDA of Pln-296 million, according to a company statement.
According to the company’s estimates, group revenue for the quarter will total Pln5.12 billion.
The Fertilisers/Agro segment is expected to post a negative EBITDA of Pln-173 million for the fourth quarter of 2022, a 5% fall on the corresponding period the previous year.
Azoty described the fertilizer market as “stagnant” in the quarter, with customers holding off purchases in anticipation of a drop in fertilizer prices and concerns about falling prices for agricultural crops.
As a result of a downtrend in natural gas prices, the three key companies of the Azoty group in October resumed production of nitrogen fertilizers that had been suspended or curtailed in August 2022 (GM Oct. 14, 2022; Aug. 26, 2022).
For full-year 2022, Azoty expects to report an 8% fall in net profit to Pln584 million, down from FY2021’s Pln634 million. However, FY2022 EBITDA is expected to have increased by 31% to Pln2.55 billion versus Pln1.95 billion the previous year, and revenue to have grown 55%, to Pln24.7 billion.
Azoty earlier this month warned it would take a Pln468 million hit to FY2022 group EBITDA from inventory revaluation and a Pln963 million group EBIT hit from impairment charges (GM March 17, p. 25).
The fertilizers and chemicals group said while each of its business segments saw a significant rise in product prices during the year, sales volumes decreased. In addition, it said growing inflation and an increase in fixed costs of operations also weighed on performance.