Aug. 10, 2017
EuroChem Group AG reported consolidated sales for the second quarter of 2017 of $1.06 billion, 5% higher than in the corresponding period of 2016. The second quarter’s performance lifted sales for the first six months of 2017 to $2.40 billion, 6% above the $2.27 billion in sales realised during the first half of 2016.
Higher operating profit carried second-quarter earnings before interest, taxes, depreciation and amortization (EBITDA) 15% higher year-on-year to $241 million, compared to $210 million during the same period last year. First-half EBITDA amounted to $590 million, 4% behind the $613 million achieved a year ago.
Second-quarter fertilizer sales volumes of 3.13 million tonnes (MMT) brought first-half sales volumes to 6.78 MMT, compared to 6.73 MMT during the first six months of 2016, as the Group shifted its production mix towards complex, AN and MAP products in light of the more competitive urea and UAN trading landscape. The Group’s expanding distribution capabilities supported third-party fertilizer product sales of 1.84 MMT, compared to 1.82 MMT in the January to June 2016 period.
Sales volumes for mining products for the three months ended 30 June 2017 were lower year-on-year and amounted to 1.15 MMT. Nevertheless, first-half volumes of 2.84 MMT were 2% above last year’s level.
“The market turbulence of the past year is giving way to a less volatile, albeit subdued, trading environment. Amid this low-point in our industry’s cycle, we remain resolute in our ambition to grow faster than the market and continue to execute on our potash strategy and further expand our distribution capabilities”, said EuroChem Group CEO Dmitry Strezhnev. “We are confident that the platform we are building today will emerge ideally positioned as the fertilizer markets rebalance and demand closes in on supply over the next decade.”