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PhosAgro books higher fertilizer production, sales in Q1

OJSC PhosAgrohas improved its fertilizer production and sales in the first quarter by 10.2% and8.2%, respectively, compared to the same period a year ago as a result of modernizationand debottlenecking projects implemented in 2015.

Total fertilizer output rose to 1.91 million tonnes from 1.74million tonnes and total sales shifted up to 1.84 million tonnes from 1.70 milliontonnes.

The Moscow-based producer said April 13 that production of phosphate-basedfertilizers and feed phosphates increased by 13.1% year over year to 1.52 milliontonnes, while production of nitrogen-based fertilizers was stable at 394,400 tonnes. 

First-quarter sales of phosphate-based fertilizers and feed phosphatesrose 9.5% to 1.41 million tonnes and sales of nitrogen-based fertilizers climbed4.2% to 429,800 tonnes.

CEO Andrey Guryev attributed the stronger sales to better-than-expecteddomestic market performance during the first quarter.

"Our domestic market performance was strong last year, andthis year it is exceeding all our expectations," he said. "In Q1 2016we significantly increased sales to half a million tonnes of fertilizers."

"Measures taken by the Russian government have helped toincrease the efficiency of agricultural production in Russia, which gives us reasonto expect further production growth and this will lead to higher domestic fertilizerconsumption."

Meanwhile, PhosAgro expects phosphate-based fertilizer consumptionfor the rest of the year to remain relatively stable, with more upside risk comingfrom Latin America.