In the second quarter, PJSC PhosAgro's attributable net profit quadrupled year on year to 11.78 billion Russian rubles from 2.95 billion rubles thanks to a favorable exchange rate.
PhosAgro recorded a forex gain of 2.59 billion rubles compared to a year-ago loss of 8.73 billion rubles as the Russian currency depreciated against the U.S. dollar to average 64.6 rubles in the June quarter, compared to 61.8 rubles a year ago. This benefited the company as its product prices are dollar-based while costs are primarily denominated in rubles.
Revenue grew 3% yearly to 58.15 billion rubles due to a 37% increase in domestic sales that was sparked by the early start of the high season. This was largely offset by an 18% decline in export sales volumes to 1.4 million tonnes. Free cash flow in the quarter rose to 10.28 billion rubles from 8.37 billion rubles a year earlier.
Consolidated EBITDA slipped 2% to 18.32 billion rubles, with an EBITDA margin of 32% compared to 33% a year ago.
Sales of phosphate-based fertilizers dipped 1% to 1.6 Mt, while sales of nitrogen-based fertilizers fell 12% to 531,000 t. Phosphate rock and nepheline sales improved 18% to 1.1 Mt.
The company said Aug. 28 that it maintained its full-year production guidance of between 9.4 Mt and 9.5 Mt of fertilizers owing to strong demand expectations and stable market conditions seen for the rest of the year.
As of Aug. 27, US$1 was equivalent to 66.55 Russian rubles.
