Polish fertilizers and chemicals group Grupa Azoty SA reported final financial results for the second quarter and first half of 2023 in line with preliminary estimates released last month (GM Sept. 22, p. 25).
The group posted a Pln543 million (approximately $123 million at current exchange rates) net loss for the second quarter versus a year-ago net profit of Pln799.6 million. EBITDA was a negative Pln608 million against a positive Pln.1.24 billion in last year’s second quarter, while revenue fell 46% year-over year, to Pln3.49 billion from Pln6.41 billion.
Azoty cited low demand for its products in areas of key importance, primarily blaming the influx of products into the European market from “Eastern and Asian sources, produced using lower-cost raw materials and without the burden of expenses associated with the European climate policy.”
Azoty reported a 24% decline in total fertilizer sales volumes in the second quarter. The company’s second-quarter loss would have been even greater had it not been partially offset by a Pln289 million contribution from the sale of CO2 emission allowances purchased on the market in the previous reporting periods.
For the six months to June 30, 2023, as per preliminary estimates, Azoty reported an EBITDA loss of Pln1.009 billion and consolidated revenue of Pln7.39 billion.
Azoty reported “a pronounced uptick” in third-quarter demand in its largest business segment, Agro/Fertilizers, however. It said group companies produced an estimated 251,000 mt of nitrogen fertilizers in August, a 79% increase from 140,000 mt in May.