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Phosagro boosts Q4'17 fertilizer output 13% amid price recovery

As fertilizer prices continue to recover, PJSC PhosAgro boosted its overall production in the fourth quarter of 2017 by over 13% to 2.3 million tonnes, the company said in a Feb. 5 release.

Phosagro's nitrogen-based products registered the largest increase in the quarter, by 38% to 561,500 tonnes, and output of phosphate-based fertilizers climbed 7% to 1.7 million tonnes. Production of phosrock and nepheline also showed improvement, growing to 2.6 million tonnes from 2.5 million tonnes a year ago.

Growing demand across the company's target markets benefited sales in the last quarter, bringing the total volume to 2.0 million tonnes, up 15%.

For full year 2017, the fertilizer producer posted growth of 12% year over year to 8.3 million tonnes, which was accompanied by a 12% increase in sales volumes to 8.1 million tonnes.

CEO Andrey Guryev said the company completed the construction of its two key investment project in 2017: the ammonia and granulated urea units in Cherepovets.

Guryev added that the company has an optimistic outlook on fertilizer price dynamics in 2018 due to a range of factors, including a likely drop in export volumes from China, a substantial decrease in stocks in India and healthy demand in Latin America.

In 2017, Phosagro's sales in Europe grew 30% year over year to 1.8 million tonnes. Sales to the Commonwealth of Independent States and Latin America reached 3.1 million tonnes and 1.6 million tonnes, respectively.

"We believe that the recovery in phosphate prices that kicked off in fourth quarter 2017, driven by inflation in the main feedstock prices [ammonia and sulfur], should continue through the beginning of the spring season for key markets," Guryev said.