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PhosAgro's Q4'17 profit plummets YOY on higher costs

PJSC PhosAgro's net income in the fourth quarter of 2017 dropped 63% year over year to 4.26 billion Russian rubles.

Revenue increased 14% on a yearly basis to 45.8 billion rubles. The average realized prices of phosphate- and nitrogen-based fertilizers increased 10% and 25% on export markets, respectively, which accounted for over 80% of total sales in the quarter.

Cost of sales increased 32% to 24.70 billion rubles, selling expenses increased 44% to 7.7 billion rubles, and administrative expenses declined 11% to 3.7 billion rubles on a yearly basis.

The company said March 21 that a 7% year-over-year appreciation of the ruble against the U.S. dollar had a negative impact on its results, as prices for most of the company's products are in U.S. dollars, while costs are recorded in rubles.

The higher costs pushed EBITDA down 5% year over year to 12.75 billion rubles.

CapEx was up 18% year over year to 12.6 billion rubles.

PhosAgro reported a 13% increase in its overall production in the fourth quarter of 2017 to 2.3 million tonnes in February.

CEO Andrey Guryev said PhosAgro aims to increase downstream fertilizer production by up to 10% in 2018.

For the full year, the company's net profit dropped to 25.33 billion rubles, from 59.89 billion rubles in 2016, as revenue declined 3% year over year to 181.35 billion rubles, and the cost of sales increased 15% year over year to 101.43 billion rubles.

The company's board recently recommended a dividend of 15 rubles per share, for a total payout of 1.94 billion rubles, to be paid from the company's 2017 net profit. This compares to 30 rubles per share paid for 2016, for a total payout of 3.89 billion rubles.

As of March 20, US$1 was equivalent to 57.53 Russian rubles.