AgroPages-EuroChem provides Covid-19 business update-Agricultural news

EuroChem Group AG has announces sales of US$1.57 billion for 1Q20, a 3% increase y/y.

The company has said it is monitoring the coronavirus situation closely. It has implemented a number of preventative risk management measures across all functions (production, logistics, supply chain, markets, staff, IT, and finance) to reduce the probability of adverse effects on staff and the business.

All EuroChem plants continue to operate as normal and customers have experienced no significant disruptions with product deliveries. All relevant sanitation, social distancing and personal hygiene measures are in place and functioning efficiently at all locations. More than 6000 office staff worldwide are working remotely.

The Group sold 6.4 million t of fertilizers, mining and other products during the period, a 10% increase y/y.

“This strong set of results is built upon the determination, hard work and coordination of everyone across the company to ensure our products reach our customers, and farmers can grow the food the world needs,” said Petter Østbø, EuroChem CEO. “In this challenging environment, our priority has been the health, safety and wellbeing of our colleagues and their families, and our business partners, while at the same time maintaining business continuity.”

Sales remained well diversified across the globe with Europe accounting for 32%, Latin America for 22%, Russia for 16%, North America for 14%, Asia for 10%, the CIS (excluding Russia) for 4%, and Africa for 2% of total sales, respectively. Net debt to LTM EBITDA amounted to 2.65x.

The company continued the development of its two potash projects in Russia, producing 506 000 t of muriate of potash (MOP) at its Usolskiy potash plant in the Perm Region over the period. At its other VolgaKaliy potash project in the Volgograd Region, progress continues apace and drilling has now reached the mine’s sylvinite layer.