Polish chemical and fertilizer major Grupa Azoty published first quarter results on May 28. Despite a 1Q net loss of 333 million zlotys ($88 million), the fertilizer and ag division yielded a positive EBITDA of 27 million zlotys ($6.8 million).
Grupa Azoty said it increased fertilizer sales volumes towards the end of the quarter despite Polish farmers reducing their spending and deferring purchases due to lower crop prices. The Polish producer cited encouraging higher urea prices but also high competition from Russian and other FSU imports.
The company also mentioned ongoing work to devise a turnaround plan and even the potential to sell some assets or enter joint ventures to capitalize on synergies, as they believe the weaker 1Q performance will be difficult to make up for in the remainder of the year.
Grupa Azoty is the largest chemical company in Poland and is a major producer of fertilizers, plastics, chemicals, oxo alcohols, and pigments. The group is the second largest fertilizer producer in the EU, with a combined annual capacity of nearly 1.8 million mt of urea, 4.9 million mt of nitrates, and 2.7 million mt of ammonia.