EuroChem declares 1Q18 sales

Despite recording an 18% quarter-on-quarter growth, first-quarter earnings before EBITDA decreased 3% year-on-year as currency headwinds converged on the generally weaker trading backdrop for nitrogen and iron ore relative to 1Q17. EBITDA for the first three months of the year amounted to US$338 million, compared with US$349 million in the corresponding period of 2017. The company realised a first-quarter net profit of US$195 million.

Fertilizer sales volumes for the first three months of the year slipped 6% year-on-year to 3.42 million t (MMT), predominantly due to softer trading of third-party products. The company realised third-party fertilizer product sales of 949 KMT during the first three months of the year, including more than 680 KMT in urea, ammonium sulphate and NPK trading. The company’s own fertilizer production during the January to March period grew 1% year-on-year to 2.38 MMT. Amounting to 1.43 MMT, first-quarter sales of mining products trailed last year’s volumes by 16% on lower iron ore deliveries.

“The Group’s solid first-quarter performance, achieved amid challenging conditions, comes as we mark the successful start of potash production at our Usolskiy site. These first tonnes have allowed us to cross one of the very last remaining milestones on our path to potash”, said EuroChem Group CEO, Dmitry Strezhnev. “Accordingly, we took further steps to recalibrate the Group’s structure in line with its evolving profile and next growth phase. As both an executive and a minority shareholder, I look with confidence to the Group’s future as Dmitry Strashnov takes over as Group CEO from July, and I look forward to providing guidance to the leadership team as I assume a non-executive role”.

Read the article online at: https://www.worldfertilizer.com/phosphates/16052018/eurochem-declares-1q18-sales/