All posts by mickeybarb@charter.net

Farm Group Opposes New Brunswick Potash Exploration

Canada, News, News Briefs, Potash

The National Farmers Union in New Brunswick (NFU-NB) said on Nov. 7 that it is concerned by the Government of New Brunswick’s recent Request for Proposals (RFP) for potash exploration in the Salt Springs and Cassidy Lakes areas, noting the RFP covers 26,350 hectares and the land is mostly privately owned (GM Oct. 28, p. 1).

It added that exploration and potential resource extraction will occur on the unceded and unsurrendered territory of Indigenous Peoples who should have stewardship over the land and water.

The NFU-NB is concerned about impacts to farms during exploration and long-term effects to farmland should extraction proceed. It said mining exploration can cause significant damage to farms before permission from landowners is required or any large equipment is brought onsite. It said it did not want to see further agricultural land lost in New Brunswick in the future.

Although potash is primarily used in fertilizer, NFU-NB said that what was extracted from the province in the past was mainly exported. It said this potential extraction will likely have little benefit to the farms and people of New Brunswick, in part because potash mines today require few new employees to run.

NFU-NB said farmers are already concerned about New Brunswick’s water tables, and that potash extraction uses and damages this resource. It said the former Nutrien Ltd. mine extracted an average of 11 million liters of water from the Penobsquis aquifer each day. It said an Aquifer Vulnerability Assessment conducted by the Royal District Planning Commission in 2012 reported that groundwater from Grand Lake to the Bay of Fundy is vulnerable to contamination.

The group said some 60 homes in Penobsquis reported losing their water supply after the mining activities began. It also said there was displacement of buildings and land, productive fields became too wet to farm, and there were fears that wastewater was not properly treated. It said properties were devalued, sinkholes appeared, and questions raised about human health concerns were never addressed.

Yara Growth Ventures Invests in Brazil’s Agrolend

Brazil, News, News Briefs, Norway

Yara Growth Ventures (YGV), the investment team within Yara International ASA, has announced an investment in Brazilian agriculture fintech firm Agrolend, Sao Paulo. Founded by brothers Alan and Andre Glezer in 2021, Agrolend offers farmers a quick means of procuring credit to buy inputs such as fertilizer.

Loans are formalized in a 100% digital manner using the grower’s Whatsapp, and the capital becomes available in less than a week. Agrolend has a network of more than 100 partners, with the credit being offered directly at the point of sale with a retailer. It is present in more than 10 Brazilian states and in several segments such as soybeans, corn, coffee, sugar cane, fruits, livestock, and dairy cattle.

Following the R$145M series B funding round, Agrolend looks to build a profitable R$2 billion loan book with a client base of 10,000 farmers in the coming years. The series B round was led by Lightrock, a global private equity manager with an impact focus, as well as Suzano Holding (large pulp and paper producer), Mago Capital (investment vehicle of the founders of Locaweb in Brazil), and YGV.

“Agrolend managed to bring together investors with complementary characteristics, joining competences such as growth capital with an impact focus, deep knowledge of the agribusiness sector, global presence, among others,” said Agrolend Co-Founder Andre Glezer.

“Furthermore, those investors have long-time commitments to invest in Brazil and are willing to invest much more at Agrolend in the following years,” he added.

“I’m excited to have the chance to work with the Glezers and the Agrolend team to help Brazilian farmers,” said YGV Investment Director George Roche. “We have seen globally that better access to financing allows farmers to do better and become more sustainable – Agrolend is playing this critical role in Brazil, and we look forward to their growth.”

Amogy Collaborates with Yara Clean Ammonia

Ammonia, News, News Briefs, Norway

Ammonia power technology provider Amogy has signed a Memorandum of Understanding (MOU) with Yara Clean Ammonia (YCA), a decarbonization-focused subsidiary of Yara International ASA. Under the MOU, YCA will consider Amogy’s ammonia-to-power system as a zero-emissions solution for use within future shipping projects. The companies will also pursue opportunities with external partners, including shipowners, for Amogy to deliver its proprietary technology and YCA to deliver clean ammonia.

YCA operates the largest global ammonia network with 12 ships, and has access to 18 ammonia terminals and multiple ammonia production and consumption sites across the world through Yara. YCA is currently building an ammonia bunkering network in Scandinavia, with the first bunker barge to be operational in 2024.

Amogy recently announced plans for an ammonia tank barge in 2023, in partnership with Southern Devall (GM Nov. 4, p. 37), and launched operations in Norway (GM Oct. 7, p. 31).

“This collaboration with Yara Clean Ammonia is a natural next step for Amogy following the establishment of our Norway operations earlier this year,” said Seonghoon Woo, Co-Founder and CEO of Amogy. “YCA operates a vast global ammonia network and understands the value of the compound as a next-generation fuel to decarbonize hard-to-abate sectors, like shipping. This agreement provides a fantastic opportunity for Amogy to work alongside innovators in this space to support further demonstrations of our technology in maritime vessels.”

Warrego, Strike Eye Merger

Australia, News, News Briefs, Spain

ASX-listed Warrego Energy Ltd., Perth, Western Australia, which owns natural gas projects in Western Australia and Spain, reported on Nov. 10 that it has received a nonbinding and indicative proposal from junior urea producer Strike Energy Ltd., Thebarton, South Australia, under which Strike would acquire all of the shares of Warrego that it does not already own.

Under the proposal, Warrego shareholders would receive 0.775 in new Strike shares for each Warrego share held. Shareholders would also receive the net proceeds from the eventual sale of Warrego’s Spanish assets.

Under the proposal, Warrego shareholders would own approximately 30.5% of the combined group and have the right to appoint one member to the Board of Directors.

Warrego owns 50% of a holding in EP469 in Western Australia, including the West Erregulla gas project, and 100% of STP-EPA-0127, which covers 2.2 million acres. Strike plans to use gas from Erregulla. In Spain, it holds an 85% working interest in the Tesorillo gas project in the Cadiz region and a 50.1% working interest in the El Romeral gas to power facility in the Seville region. 

 

Mosaic Misses Estimates on Lower Phosphate Sales, Hurricane Damage; Sees Continued Tight Supplies

Earnings, News, Phosphate, Potash, Tampa

The Mosaic Co. announced third-quarter net earnings of $841.7 million on revenues of $5.3 billion and adjusted EBITDA of $1.7 billion, below Bloomberg Consensus analyst estimates of a $1.19 billion net income, revenues of $5.76 billion, and $1.88 billion adjusted EBITDA.

Despite the miss, the company’s net earnings more than doubled from the year-ago $371.9 million, while outpacing prior-year revenues of $3.4 billion and adjusted EBITDA of $969 million. Gross margin for the quarter was $1.50 billion, up from $864.5 million.

Mosaic cited a demand dip in the third-quarter phosphate market, as well as reduced production volumes stemming in part from damage sustained from Hurricane Ian.

“Mosaic delivered record sales in the first nine months of 2022, and we expect favorable fundamentals as we conclude the year and look forward to 2023,” said Joc O’Rourke, Mosaic President and CEO. “In our Phosphates business, Hurricane Ian forced us to shut down operations late in the third quarter, which delayed shipments at the end of September. Our team performed admirably and was able to get our Florida operations back up and running quickly following the hurricane. We estimate the shortfall in production to be in the range of 200,000 mt.”

Phosphate sales volumes were down 10% in the third quarter at 1.7 million mt, Mosaic said, while turnarounds and impacts to the company’s Florida-based operations due to Hurricane Ian contributed to a 4% year-over-year decline in production.

Strong potash prices, as well as increases in both MOP production numbers and sales volumes, were a primary driver for the company’s year-over-year earnings increase, the company showed. The average MOP price for the quarter was $666/mt, up 129.7% from the year-ago $290/mt. Sales volumes registered a 16.7% increase, at 2.1 million mt compared to 1.8 million mt in 3Q 2021, while production firmed 43.8%, to 2.3 million mt from 1.6 million mt.

O’Rourke attributed the segment’s price strength to ongoing global supply weakness.

“Global potash supply remains impacted by the significant reduction in Belarusian exports, which we think will be down 8 million mt in 2022,” said O’Rourke. “Of the 4 million mt they will export this year, we estimate about 2 million mt were shipped in the first quarter before the sanctions and Lithuania’s decision to prevent Belarus from using its ports.”

Mosaic anticipated similar conditions continuing into 2023. “If I think about 2023 … with the lack of sales coming out of Belarus, we do see that the market is going to have to ration supply,” said O’Rourke, “which does … bring up an opportunity for us to potentially move more product.

“We have, I think, developed real great flexibility there with Esterhazy now reaching what I would call its full capacity, (and) bringing on Colonsay to augment that capacity and give us some flexibility so that we can hit the seasonality as well as the increased demand. So I think we’re well positioned there,” he added.

The phosphate market continued to be impacted by supply constraints of its own, the company said, citing continued expectations of a full-year export reduction totaling 5 million mt from China, which O’Rourke expected could continue through “at least” the first half of 2023, and possibly beyond.

“While global channel inventories of phosphate and potash remain below historic norms, certain regions – especially in the areas where we do most of our business – inventories built in the first half of the year,” O’Rourke said. “But prices have retreated back to levels low enough to entice growers to step back into the market. We expect inventories to continue working lower through the end of the year and into early 2023.”

While US farmers were previously seen mining their soil, falling fertilizer prices were said to entice growers toward more typical application rates.

“US fall application has been trending back towards normal levels. We believe we could end the season with inventories significantly depleted, especially for phosphates,” said O’Rourke. “The strength of crop prices and more affordable fertilizer prices suggest nutrient demand will recover from the summer lull we experienced during the third quarter.”

For the fourth quarter, Mosaic expects MOP sales volumes of 2.0-2.2 million mt, with mine-gate prices landing in the $580-$630/mt range. Phosphate sales volumes are projected at 1.7-2.0 million mt, with DAP prices anticipated in a $700-$750/mt FOB range. A decline in raw materials prices, specifically sulfur, is expected to improve phosphate margins by $40-$45/mt in the fourth quarter.

Net earnings in the nine-month period were $3.06 billion on net sales of $14.64 billion, above the year-ago $965.8 million and $8.52 billion, respectively. Gross margin was $4.79 billion, rising from $2.05 billion.

Potash (millions) 3Q-22 3Q-21
Sales Volume (000 mt) 2.1 1.8
Production Volume (000 mt) 2.3 1.6
Gross Margin (million $) 799 236
Operating Earnings (million $) 793 220
Adjusted EBITDA 871 272
Sales (million $) 1,400 589
MOP Selling Price $/mt 666 290
Phosphates (millions) 3Q-22 3Q-21
Sales Volume (000 mt) 1.7 1.8
Production (Finished) Vol. (000 mt) 1.7 1.8
Gross Margin (million $) 358 364
Operating Earnings (million $) 131 326
Adjusted EBITDA 481 479
Sales (million $) 1,600 1,300
DAP Selling Price $/mt 809 605
Mosaic Fertilizantes (millions) 3Q-22 3Q-21
Sales Volume (000 mt) 2.8 3.4
Gross Margin (million $) 348 332
Operating Earnings (million $) 323 290
Adjusted EBITDA 343 317
Sales (million $) 2,600 1,800
Avg Finished Price (Dest.) 931 524

Nutrien Ltd. – Management Brief

Management Briefs, Saskatchewan

Nutrien Ltd.’s Executive Vice President and Chief Commercial Officer, Mark Thompson, announced that John Fowler has been appointed as the company’s Senior Vice President of NPK Sales. In this role, he will oversee Nutrien’s global sales teams servicing customers around the world.

Fowler has been with Nutrien for 20 years, working in numerous senior commercial and sales leadership roles for the company, with deep experience supporting global agricultural and industrial customers. He was most recently accountable for Ag Sales in the Central US region.

Nutrien also recently announced that Trevor Williams has taken on the role of Interim President of Nitrogen and Phosphate. He has been with the company for over 11 years, most recently as Senior Vice President of Nitrogen Operations. The company said he has diverse global experience leading large chemical operations and strategic growth initiatives.

Compass Minerals – Management Brief

Management Briefs, Southern Plains, Specialty

Compass Minerals has named Brent Collins as Vice President, Investor Relations. The company said Collins brings more than 16 years of investor relations experience, along with relevant experience as an auditor, financial accountant, and sell-side associate. Prior to joining the company, Collins served as Head of Investor Relations at W&T Offshore Inc. Previously, he was Head of Investor Relations at Black Stone Minerals, and was Senior Director of Planning and Investor Relations at SM Energy Co.

Collins received both a Bachelor of Business Administration and a Bachelor of Accountancy from New Mexico State University in Las Cruces. He is also a Certified Public Accountant (CPA) and a member of the National Investor Relations Institute (NIRI).

Compass has appointed Joe Havasi as Vice President, Natural Resources. He has been with the company for more than 12 years and has nearly 30 years of experience in the industry, including serving in geologist and land and mineral resources roles. He serves on the Great Salt Lake (GSL) Advisory Council, representing mineral extraction interests on the GSL, and on the Salinity Advisory Council, representing North Arm of GSL mineral extraction interests. Havasi also sits on the Utah Department of Environmental Quality Water Quality Board and is an extractive industry representative on the GSL Technical Advisory team.

Havasi received his B.S. in geology from Denison University and an MBA from Youngstown State University.

K+S 3Q Misses Estimates, Cites Weakening Demand

Earnings, Germany, News, Potash, Specialty

K+S Group reported an EBITDA of €633.3 million (approximately $636.2 million at current exchange rates) for the third quarter ended Sept. 30, 2022, versus €120.7 million for the same prior-year quarter, missing analysts’ average estimates of €723.2 million (BloombergConsensus).

Revenue increased 97% year-over-year, reaching €1.47 billion, also missing analysts’ average estimates of €1.5 billion.

Third-quarter adjusted earnings after tax amounted to €378.7 million, down from €1.28 billion the previous year.

K+S said excluding the €1.42 billion non-cash reversal of impairment losses on non-current assets and the associated effects on deferred taxes, adjusted earnings in third-quarter 2021 would have been €-3.8 million (€-0.02 per share).

The company reported the non-cash reversal of impairment losses was based on “a significantly more optimistic long-term expectation for the potash business and the associated price trend,” and consequently, the non-cash impairment loss of third-quarter 2020 was fully reversed (GM Nov.12, 2021).

For third-quarter 2022, K+S’ Agriculture Customer segment saw a significant jump in revenues, to €1.16 billion, up from the year-ago €529.1 million. But the segment’s sales volumes were 11% down year-over-year at 1.56 million mt versus 1.76 million mt, pointing toward accelerating demand destruction, wrote Citi analyst Mubasher Chaudhry in a note Bloomberg reported.

Third-quarter potash sales volumes were down 13%, to 0.95 million mt from the year-ago 1.09 million mt, while fertilizer specialties sales volumes fell 8% to 0.61 million mt from 0.67 million mt, K+S reported.

While potash prices have softened, they remain “historically high,” suggesting “a strong, but sequentially lower fourth quarter result,” wrote Chaudhry. He believes with nutrients still expensive, farmers are likely to prioritize nitrogen over potash and phosphates.

Assuming uninterrupted production – that is, no gas shortages – at its Germany sites, K+S sees sales volumes of all products in its Agriculture customer segment to be around 7.2 million mt in full-year 2022, lower than its previous forecast of around 7.5 million mt with a gas levy or shortage scenario. Agriculture segment sales volumes in FY2021 were 7.62 million mt.

K+S expects that, as a result of lower export volumes from Russia and Belarus, the record world potash sales volume of about 77 million mt (including about 5 million mt of potassium sulfate and potash grades with lower mineral contents) experienced in the two previous years cannot be achieved in 2022 and will be significantly lower, in particular due to reasons of availability.

The demand side, K+S said, is furthermore currently characterized by “a wait-and-see attitude,” as there is no imminent main potash application season in the last few months of the year in the sales regions important for the company.

The company’s Industry+ Customer segment posted a 41% rise in third-quarter revenues to €307.1 million, up from the year-earlier €217.2 million, but total sales volumes declined by 3% to 1.68 million mt from 1.73 million mt the previous year.

Sale volumes of de-icing salt were down 27% on the year, at 0.48 million mt from 0.65 million mt, with the company citing “above average” early-fills in the third quarter of 2021 due to the prevailing weather conditions.

But revenues from products for chemical, industrial, and pharmaceutical applications increased “significantly,” due in particular to higher prices for products containing potash, the company reported.

For the nine-months, K+S posted a jump in EBITDA to €1.86 billion on revenues of €4.19 billion, up from €358.1 million and €2.14 billion, respectively, the previous year. Nine-month revenues increased by 95%.

K+S now sees full-year 2022 EBITDA at €2.4 billion, and the outlook now excludes a gas levy or gas shortage in the fourth quarter. Its previous full-year EBITDA outlook of €2.3-€2.6 billion included a gas levy or gas shortage scenario.

The company said as far as is known at the present time, it will not make use of measures arising from the German Federal Government’s defensive shield, or gas price cap, and therefore the full ability to pay dividends would be maintained.

Agriculture Customer Segment Sales Volumes and Prices

  3Q-2022 3Q-2021 % change 9M-2022 9M-2021 % change  
Sales volumes (million mt) 1.56 1.76 (11) 5.23 5.67 (8)
Potassium chloride 0.95 1.09 (13) 3.23 3.54 (9)
Fertilizer specialties 0.61 0.67 (8) 1.99 2.12 (6)
Sales volumes (million mt)            
Europe 0.55 0.69 (20) 2.16 2.43 (11)
Overseas 1.01 1.07 (6) 3.07 3.24 (5)
             
Average price €/mt 744.5 300.6 – 641.0 259.7 –
Europe €/mt 675.9 289.9 – 586.9 269.0 –
Overseas $/mt 787.3 362.6 – 719.1 301.9 –

ICL Posts Higher 3Q Earnings, Sales; Guidance Updated

Earnings, Israel, News, Potash, Specialty

ICL Group Ltd. posted a 181% jump in net income attributable to shareholders of the company to $633 million on a 41% rise in sales, to $2.52 billion for the quarter ended Sept. 30, 2022, up from the year-ago $225 million and $1.79 billion, respectively. Adjusted EBITDA increased 139% to $1.05 billion from $438 million.

“Once again, ICL’s focus on long-term specialties solutions benefited the company, as did additional upside from commodity prices, which began to ease following record-setting rates in the first half of the year,” said ICL President and CEO Raviv Zoller.

For the third quarter, specialties made up nearly 60% of sales and more than 45% of EBITDA.

All three of the company’s specialities businesses delivered record third-quarter results, even with shifts in demand and continued global supply chain challenges, Zoller said.

For the full year, ICL said it expects to be at the upper end of its previously issued guidance range for adjusted EBITDA of between $3.8 billion to $4.0 billion, with between $1.5 billion to $1.6 billion of this amount estimated to come from the company’s specialties focused businesses.

Potash production in the third quarter was 1.163 million mt, 0.9% up on the prior year 1.152 million mt. Total sales volumes (including internal sales) increased 6.6% to 1.134 million mt year-over-year, up from 1.064 million. ICL cited higher sale quantities to China, India, and the US, offset by lower sales to Brazil.

Nine months potash production increased 4%, to 3.467 million mt from the year ago 3.326 million mt.

ICL reported its Dead Sea operation delivered “record” production for both the third quarter and the first nine months of the year, as the site continued to benefit from operational improvements and efficiencies.

Production improvements continued to advance at ICL Iberia’s Cabanasses mine in Spain, with ICL noting performance improvement measures at the site on track.

Potash sales volumes (including internal sales) for the first nine months of the year also rose 4%, to 3.431 million mt from 3.287 million mt. The company noted higher sales to Brazil, China, and India in the period, partially offset by lower sales to the US and China.

Zoller told analysts that ICL is not building potash inventory, and so is placing product where “the best opportunity is.” In first-half 2022, the best opportunity was Brazil, he said, adding that the company placed about 90% of its annual allocation in Brazil in the six-month period.

In August, ICL signed a binding Memorandum of Understanding (MOU) with a European customer to supply 300,000 mt of potash annually, with the price to be based on prevailing market prices.

ICL reported the company’s average potash realized price per ton in the third quarter was $697/mt CIF, up 108% from the year-ago $335/mt CIF, but 13% lower compared to second- quarter 2022.

Responding to an analyst’s question at an earnings call, Zoller said the company sees its average potash selling price for the fourth quarter at close to $600/mt.

ICL Boulby, which is now part of ICL’s Growing Solutions business segment (formerly Innovative Ag Solutions) saw the production of polysulfate – the marketed from of polyhalite – increase by 9% year-over-year, to 216,000 mt in the third quarter.

So far this year, over 800,000 mt of polyhalite has been hoisted at Boulby, setting new daily production records, the company said, highlighting the site remains on track to achieve its 1 million mt target in 2022.

Sales of FertilizerpluS – the company’s polysulfate line of products – also increased year-over-year in the quarter due to higher selling prices and sales volumes.

ICL also reported Growing Solutions’ sales to the specialty agriculture market increased in the quarter due to higher sales prices, as well as the strong performance of the two recently-acquired specialty plant nutrition businesses companies in Brazil – Fertiláqua, completed in January 2021 (GM Jan. 8, 2021), and ADS (formerly Compass Minerals América do Sul SA) completed in July 2021 (GM July 2, 2021).

For the nine months to Sept. 30, ICL posted a 266% rise to $1.83 billion in net income attributable to shareholders of the company, up from $500 million the previous year.

Nine-month adjusted EBITDA increased by 201% to $3.31 billion from the prior year $1.1 billion, while sales grew 61% to $7.92 billion from $4.92 billion.

Meanwhile, the company lowered its quarterly dividend to 24.35 cents per share, or approximately $107 million, compared with 29.18 cents per share in the second quarter of 2022. The dividend will be payable on Dec. 14, 2022.

Higher Sales Volumes, Prices Boost PhosAgro; FY22 Production Forecast Increased

Earnings, News, Nitrogen, Phosphate, Russia

PhosAgro, Moscow, posted an 88% jump in IFRS net profit of RUB165.5 billion (approximately $2.7 billion at current exchange rates) on revenue of RUB459.4 billion for the nine months to Sept. 30, 2022, up from the year-ago RUB87.8 billion and RUB292.6 billion, respectively.

Net profit adjusted for foreign exchange gains and losses came in 75% higher year-over-year at RUB150.2 billion versus RUB85.7 billion the previous year.

Nine-month adjusted EBITDA increased 70% to RUB222.5 billion, up from the prior year RUB131 billion.

Revenue rose by 57%, with the Russian fertilizer group attributing the growth to an increase in sales of end products, which it said was driven by higher mineral fertilizer output.

PhosAgro said “an extensive program” for the modernization and construction of new production facilities enabled the group to “considerably improve” the performance of its equipment.

The group also cited higher average sales prices in world markets and a change in sales structure that favors high-margin fertilizers – which, it said, were in high demand among farmers – as also driving the nine-months revenue increase.

Mineral fertilizer production for the nine months to Sept. 30 increased 7% year-over-year to 8.06 million mt, up from the previous year 7.55 million mt.

Nine-months mineral fertilizer sales volumes increased by 7% on the year, reaching 8.31 million mt, compared with 7.79 million mt.

PhosAgro said the sales volumes growth was driven by the strong demand for fertilizers in Russian and global markets, in addition to the aforementioned increase in production volumes.

Sales of phosphate-based fertilizers and MCP increased by 9% to 6.39 million mt versus the year-ago 5.86 million mt, but nitrogen-based fertilizer sales dipped a tad (by 0.3%) year-over-year to 1.92 million mt from 1.93 million mt.

For the third quarter, PhosAgro reported a 5% increase year-over-year in adjusted net profit to RUB41.65 billion, beating the RUB36.7 billion that analysts forecast in a consensus forecast for Interfax, the Russian news agency reported.

Looking ahead, PhosAgro noted nitrogen-based fertilizer markets continue to demonstrate a high degree of volatility, partly due, it said, to the persistence of high natural gas prices amid an expected increase in seasonal demand from key markets – India, South America, and Europe.

It further noted the market for phosphate-based fertilizers in the fourth quarter traditionally has been the off-season period in the group’s main sales regions, which, it said, may result in additional pressure on prices.

However, PhosAgro sees the lack of large export volumes from China, due to ongoing export restrictions in favor of deliveries to the domestic market, as supporting global markets for phosphate-based fertilizers in general.

But Russia’s BCS Global Markets analysts, as cited by a bne Intelinews report, warn that phosphate and urea prices are expected to decelerate in the fourth quarter, while the cost dynamics for PhosAgro are mixed – the cost of sulfur and sulfuric acid increased, while the cost of logistics and ammonia declined.

“We expect results to start deteriorating following the fertilizer prices in the future, should the downward trend continue,” BCS Global Markets analysts commented, maintaining a negative outlook on PhosAgro’s shares, according to the report.

The Russian fertilizer group has upped its production forecasts for 2022 to 10.9 million mt, according to an Interfax report, citing a group statement.

“The accumulated dynamics for the output of fertilizers allow us to improve the forecast for production volumes for the year,” said PhosAgro Chairman Viktor Cherepov, as cited by the report.

“We expect to exceed 10.9 million mt in 2022, growth of nearly 5% year-over-year.”

In August, the group had published a production forecast of 10.8 million mt for 2022. In 2021, it boosted fertilizers output by 3% to 10.31 million mt, up from 2020’s 9.98 million mt (GM Feb. 11, p. 30).

PhosAgro Production and Sales Volumes

‘000 mt 9M-2022 9M-2021 % Change
Production
Phosphate-based fertilizers and MCP 6,184.2 5,779.8 +7
Nitrogen-based fertilizers 1,875.4 1,770.6 +6
Total fertilizers 8,059.6 7,550.4 +7
       
Sales volumes
Phosphate-based fertilizers and MCP 6,390.0 5,858.7 +9
Nitrogen-based fertilizers 1,922.0 1,927.8 (0.3)
Total fertilizers 8,312.1 7,786.5 +7