Phosagro net income surges 150% in H1 2011

Russian phosphate fertilizer producer, PhosAgro, has posted a 1H 2011 net income of 12.291 billion roubles under IFRS.

The net result is up more than 156% year on year from the 4.798 billion rouble net profit posted for 1H 2010, with EBITDA up 106% year on year to 17.752 billion roubles, on the back of the 35% year on year rise in revenues to 48.764 billion roubles.

The company said the results reflected a 21% increase in nitrogen fertilizer sales, offsetting a 17% fall in phosphate rock sales, against a backdrop of higher fertilizer prices globally. CEO Maxim Volkov, said that the outlook for continued demand for soft commodities underpinned a buoyant outlook for the LSE listed company.

"We see continued tightness in soft commodities markets at least through the end of the year supporting fertiliser prices and volumes globally as farmers invest in maximizing crop output. The new capacity from Ma’aden in Saudi Arabia has not to date caused disruptions to the market, and we believe that demand will at least match capacity going forward.

PhosAgro’s unique position as a global leading phosphate-based fertiliser producer with a highly integrated, low-cost production model, combined with a strong balance sheet, means that the company is well positioned to deliver value for its shareholders.”