Anton Vishanenko, Uralkali’s CFO, made a presentation at the Russian CFO Summit at the InterContinental Moscow Tverskaya (Moscow).
During his speech, Anton Vishanenko outlined the main areas for optimisation of the company’s financial activities, including two main initiatives: the reduction of potash ore production and ship freight costs.
Potash ore production costs will be reduced through the gradual reduction of shaft-sinking and tunnel-boring machines operated at the company’s mines. An increase in load factor of the shaft-sinking and tunnel-boring machines will enable the company to avoid acquiring new ones in 2017-2018, without reducing the number of mining teams, while released capacity will be used for new facilities in line with their commissioning. In the future, the amount of spending in this area may be reduced by 15%.
Optimisation of freight costs will be achieved through the creation of an e-freight platform involving ship owners and brokers. Its open format will allow all participants to reduce the role of brokers in ship transactions and reduce the amount of brokerage commissions. Uralkali expects that such a tool will reduce freight costs by 5-7%.
Uralkali is also considering converting part of its loan portfolio from a floating rate to a fixed one.
Read the article online at: https://www.worldfertilizer.com/materials-handling/31102016/uralkalis-cfo-attends-the-russian-cfo-summit/