PhosAgro

A vertically integrated structure with a full cycle of production of phosphorus-containing mineral fertilizers from the extraction of phosphate raw materials to final products (fertilizers, feed phosphates, phosphoric acid, etc.). PhosAgro ranks first in Europe and second in the world in the production of concentrated phosphorus-containing fertilizers.

PhosAgro Group includes JSC, Apatite JSC PhosAgro Cherepovets(created as a result of the merger of OJSC Ammofos and OJSC Cherepovets Azot), CJSC, Agro-Cherepovets Balakovo branch of Apatit JSC, CJSC, Metachemical LLC, PhosAgro Trance LLC and PhosAgro Region OJSC.NIUIF

Performance indicators

2023: Growth in fertilizer exports to 8.7 million tonnes

In 2023, PhosAgro increased its fertilizer exports to 8.7 million tons. The general director of the company, Mikhail Rybnikov, cited such data at the end of December 2023. According to him, in the segments of nitrogen mineral fertilizers and feed phosphates, an increase in supplies abroad was recorded by 6.5% and 8.7%, respectively.

As noted by Rybnikov, sales of fertilizers in near abroad at the end of 2023 at PhosAgro increased by 18%. The main sales areas in the company were Latin America, Asia, Africa, while the company notes the redistribution of about 1 million tons of supplies from India and other Asian countries towards Latin America due to the recovery in Brazilian demand and a more favorable price and logistics situation in the Latin American direction.

PhosAgro increases annual fertilizer exports

At the same time, in 2023, PhosAgro almost stopped deliveries to the countries of Northern, Eastern Europe and the Baltic states, but increased shipments to Southern and Western Europe, to the Balkans.

The total volumes of supplies to Europe remained within 2 million tons, that is, at the level of 2022 (but a third less than the volumes of previous years, when exports to Europe reached 2.8-3 million tons), - added Rybnikov, whose words are quoted by TASS.

According to the head of PhosAgro, friendly states in 2023 accounted for about 75% of the company's exports against 70% a year earlier. Fertilizer supplies to African countries amounted to more than 550 thousand tons.

Fosagro plans to increase its annual exports to Africa by 1.8 times by 2025 compared to the results of 2022 to 1 million tons in physical weight. According to the Russian Association of Fertilizer Producers (RAPU), Fosagro is the largest exporter of Russian fertilizers to Africa. Over the past five years, the company has 4.6 times increased annual deliveries to this continent. Fosagro supplies products to 21 African countries.^[1]

2022: Revenue growth by 35% to RUB 569.53 billion

PhosAgro Group completed 2022 with revenue of 569.53 billion rubles, which is about 35% more than a year earlier. Net profit in comparison with the same periods rose by 42.4% and reached 184.71 billion rubles. Such data were released by the company in early March 2023.

As stated in PhosAgro, revenue growth was the result of an increase in sales of final products. The increase in revenue was also influenced by a higher average level of sales prices on world markets and a change in the structure of the company's products sold in favor of high-margin types of fertilizers, which are in high demand among farmers. Revenue grew at a faster pace relative to the cost of sales, which increased by about 23% at the end of the year, the group said.

PhosAgro Financial Performance

In 2022, total sales of the company's products increased by 6.4% and exceeded 11 million tons, which is a record figure in the history of PhosAgro. At the same time, the growth in sales of phosphate fertilizers (the company's main products) amounted to 8.3% and reached 8.4 million tons. This growth was driven by increased production volumes and strong demand for fertilizers in the Russian and global markets.

Annual production of mineral fertilizers and other products of the chemical complex increased by 4.6%, to 11.1 million tons. This growth was achieved thanks to the efficient operation of new industries launched as part of the implementation of the company's comprehensive long-term development program and the expansion of the product line.

PhosAgro's net debt as of December 31, 2022 increased to 180.3 billion rubles ($2.6 billion), but the ratio of net debt to adjusted EBITDA at the end of the year decreased to 0.68x.^[2]

2021: Revenue growth by 65.6%, to 420.59 billion rubles, profit - 129.67 billion rubles

Fosagro's revenue in 2021 reached 420.59 billion rubles, which is 65.6% more than a year earlier. The net profit of the producer of phosphorus-containing fertilizers during this time soared by 666.3% and amounted to 129.67 billion rubles. The company's statements were published on February 10, 2022.

The growth in revenue at Fosagro was explained by the company's record output of finished products, the recovery of world fertilizer prices during the year and high demand from end consumers amid low stocks in key markets.

Phosagro's net debt as of December 31, 2021 slightly decreased compared to the end of 2020 (then it was 156.88 billion rubles) and amounted to 153.7 billion rubles ($2.1 billion). It is noted that the reduction in the debt burden was ensured by increasing the profitability of the business with effective control of internal costs. Net debt/EBITDA decreased to 0.8x. For 12 months of 2021, the company's free cash flow amounted to a record 77.9 billion rubles, which is 83.1% higher than in 2020.

The volume of investments in the acquisition of Phosagro fixed assets in 2021 amounted to 48 billion rubles, an increase of 17.3%. This growth was associated with reaching the final stage of the construction of a modern production complex in Volkhov and the implementation of other projects as part of a long-term development strategy, the company explained.

In 2021, the cost of Phosagro products sold increased by 31.3% compared to a year ago. This growth was mainly due to an increase in the volume of sales of commodity products and an increase in prices for the main raw materials.

Sales of phosphorus-containing fertilizers and feed phosphates at Fosagro in 2021 increased by 1.2%, to 7.76 million tons. The sale of nitrogen fertilizers rose by 9.1%, to 2.5 million tons.^[3]

History

2024: Launch of a mineral fertilizer plant for 34 billion rubles

On March 5, 2024, Fosagro officially opened a chemical complex in Volkhov, Leningrad Region. According to the press service of the regional government, 34 billion rubles were invested in this project for the production of mineral fertilizers.

As part of a large-scale project, a modern complex appeared on the site of the old Soviet enterprise, including new lines for the production of extraction phosphoric and sulfuric acids, water-soluble mineral fertilizers. New storage facilities and a complex for the disposal of waste technological steam have also been created, providing the enterprise with electricity of its own generation by 85%. The company has created 700 new jobs.

source = Government of Leningrad Region

It is noted that due to the deep modernization and new construction:

• annual production of mineral fertilizers will grow by more than 4 times compared to the level of 2019 and will exceed 1 million tons;
• processing of apatite concentrate will grow more than 5 times to more than 1.5 million tons;
• sulphuric acid production will grow more than 5 times to 1.1 million tons;
• phosphoric acid production will grow more than 5 times to 500 thousand tons.

The complex also launched the production of a new brand of fertilizers - monoammonium phosphate. The production of a new product has begun - water-soluble ammophos, fertilizer for greenhouse farms. Volkhov Plant is the only producer of sodium tripolyphosphate in Russia.

Russian President Vladimir Putin took part in the opening of the enterprise via video link. The head of state asked what is the average salary at the enterprise. He was answered - 125 thousand rubles. According to the Governor of the Leningrad Region, Alexander Drozdenko, about 350 highly qualified engineering jobs have been created at the plant^[4]

2022: Vladimir Litvinenko transferred almost the entire stake in PhosAgro to his wife

On May 23, 2022, it became known about the transfer of Vladimir Litvinenko's stake in PhosAgro to his wife Tatyana Litvinenko. The latter became the owner of a 20.6% stake in the company, and the share of the rector of St. Petersburg Mining University in one of the world's leading producers of phosphorus-containing fertilizers decreased to 0.39%.

PhosAgro was notified of Vladimir Litvinenko's change in the share capital of the company, the company's press center on the official website said on May 23, 2022. The reasons for the transfer of the share in the message "Fosagro" are not called.

Earlier, Litvinenko first entered the Forbes global list with a fortune of $1.5 billion. Litvinenko was the second largest shareholder in the fertilizer producer after the Guryev family - the main beneficiaries. Another major shareholder of PhosAgro, Igor Antoshin, owns a 4.5% stake. Litvinenko has repeatedly topped the rating of the richest rectors in Russia thanks to a stake in PhosAgro.

On March 10, 2022, Fosagro CEO Andrei Guryev left his post after the [[|EU]] imposed personal sanctions on him. Also, his father, billionaire Andrei Guryev and Frenchman Xavier Rolet, left the board of directors. Guryev owned 48.48% of the company's shares.

By May 2022, Fosagro is the largest producer of phosphate fertilizers in Russia. The company owns Apatit JSC in Cherepovets, its branches in the Murmansk, Saratov and Leningrad regions, Fosagro-Region LLC and the Research Institute for Fertilizers and Insectofungicides named after Professor Ya. V. Samoilov.

In May 2022, the Government Commission of the Russian Federation allowed PhosAgro to continue circulation of global depositary receipts (GDR) abroad. The companies' GDRs are traded on the London Stock Exchange.^[5]

Notes