Russia Oil and Gas, Phosagro (Fosagro)
In 2016, Fosagro increased the volume of the fertilizers production by 9.4% compared with 2015 to 7.4 million tons, the company reports.
In 2017, Fosagro plans to reduce its capital investments to 25-30 billion rubles, which is almost 1.5 times lower than a year earlier, the company’s CEO Andrei Guriev said at the conference c
The company filed a new lawsuit against "Fosagro".
UCC "Uralchem", the conflict of which with "Fosagro" group around deliveries of apatite concentrate has led to the stopping of "Voskresensk mineral fertilizers" in 2014, is again trying to solve the problem in the courts. UCC has already agreed on the conditions which it refused before, but now "Fosagro" is not going to cooperate. As a result, plant again is on the verge of stopping, and lawyers believe attempts of "Uralchem" to solve the problem through the court are futile.
On July 7th "Voskresensk Mineral Fertilizers" (VMF) under control of "Uralchem" filed a suit in the Moscow Arbitration Court to "Apatit" and its main company "Fosagro", demanding it to sign a contract to supply about 450 thousand tons of apatite concentrate in 2016. VMF sent the corresponding offer in May, but "Fosagro" has not approved it. The structure of "Uralchem" proposes to set the price based on a formula agreed upon by the FAS in 2012. The first option - 70% of the concentrate on the basis of FOB North Africa plus 30% of the average prices for domestic consumers in the previous year adjusted to the index of industrial inflation. The second - 35% of the minimum export price, plus 35% of the price on FOB North Africa, plus 30% of the average domestic price. These formulas are valid until the end of 2016, after which the price should be calculated at the minimum export net of logistics costs and customs duties.
In H1 the financial results of the company rose sharply.
In H1 the net profit of "Fosagro" more than tripled to 27.7 billion roubles,revenues and EBITDA sharply increased. The company attributed this growth not only to the weakening of the rouble, but also to the growth of its operating performance, including the increased production of phosphorus products by 12%.
In H1 the net profit of "Fosagro" increased by 3.4 times to 27.7 billion roubles, according to the report under IFRS. The revenue increased by 65% to 93.7 billion roubles, the EBITDA – by 156% to 41.5 billion roubles. The company stated revenue growth was due to favourable market conditions and a significant weakening of the rouble.