Billion dollar revenues for Murmansk fertilizers
Supported by high demands and a weak ruble, Russian mineral fertilizer company Phosagro boosts profits.
The company half year financial report shows that Phosagro had its revenue for the period increased by 65 percent to $1,63 million (RUB 93.7 billion), while EBITDA grew by 156 percent to $723 million (RUB 41.5 billion).
The 6-month result is the best ever for the company, newspaper Vedomosti reports.
A key share of the Phosagro operations is concentrated in Apatit, the mining and processing subsidiary located in Murmansk Oblast.
“We are pleased to report exceptionally strong results, with net profit margin at nearly 30 percent, allowing us to make sustainable increases to our dividend payments. In a tight market environment, our phosphate segment is driving the majority of that growth, with gross profit margin reaching 57 percent”, PhosAgro Management Board Chairman and CEO Andrey Guryev says in a press release.
Phosagro is set for an increase in capacity and will this year expand underground mining at its Kirovsk mine in the Kola Peninsula. The Main Shaft No 2 at Kirovsk mine has already started trial operation, Guriev confirms.
As previously reported, the growing demand has made Phosagro start exploring the possibilities for a new plant in the Kola Peninsula.
The company has over the last couple of years conducted major cost cuts and reorganizing company structures. According to Murman.ru, the company is reducing its staff in Murmansk Oblast with as much as 3500 jobs. The company itself maintains that the lion’s share of the staff cuts consists of early pensions and tranfer of employees to other company units.
Figures from Patchwork Barents, the regional dataportal, shows that apatite production in the Kola Peninsula has increased steadily over the last years. Phosagro is the by far biggest regional producer with 7,5 million tons in 2014. Also Eurochem and Acron produces apatites in the region.
