Higher fertiliser prices boosted Phosagro in 2011

Date:04-26-2012


Russian fertiliser group Phosagro reported an 88 percent increase in 2011 net income thanks to higher fertiliser prices, and forecast that record planting acreage and high grain prices will drive demand this year.

"In 2011, Phosagro's revenue exceeded 100 billion roubles for the first time and this was the second-best year (after 2008) in terms of EBITDA and net profit," chief executive Maxim Volkov said in a statement.

Net profit at the world's second-largest phosphate producer -- after Minnesota-based Mosaic Co -- rose to 22.5 billion roubles ($765 million) last year, from 12 billion in 2010.
Sales, at 100.5 billion roubles ($3.4 billion), were up 31 percent.

The company, which raised $538 million in a London IPO in 2011, said it plans an increase in fertiliser production and sales in 2012.

Fertilisers has been a hot sector for investors over the last year, as the world's rising population and unpredictable weather patterns have piled pressure on food supplies.

The impact of new phosphate production by Saudi Arabia's Maaden was muted due to ongoing growth in demand, and other new capacity due in the near future will not be sufficient to meet this demand, Phosagro said.

Its global depository receipts (GDRs) were down 0.5 percent at $10.40 by 0858 GMT, compared with an IPO price of $14.

Last year's earnings before interest, taxation, depreciation and amortisation (EBITDA) rose 73 percent to $1.2 billion, for an EBITDA margin of 35 percent.

Net debt at the end of 2011 stood at $472 million, or 0.43 times EBITDA, the company said, adding its capital spending bill last year was $439 million.