CEO PhosAgro eyes good profit, EBITDA figures in April–June

KIROVSK, Aug 26 (PRIME) -- Russian fertilizer producer PhosAgro expects a robust net profit and earnings before interest, taxes, depreciation, and amortization (EBITDA) for April–June, CEO Andrei Guryev told reporters on Monday.

“Our second quarter is very strong for net profit, EBITDA, and cash flow,” he said, adding that a recent contraction of prices for diammonium phosphate (DAP) will not hurt the company’s dividend payment.

DAP prices will start growing until the end of the year. “It may not grow to the level of U.S. $400 where we were before. It was a good, positive level. But I think that the range of $350–380 is the level of the third and the fourth quarter,” he said.

The company expects good demand for phosphorus from the countries of the Latin America and India, while demand from the U.S. that was reduced by the floods should restore until the end of the year. Russia also shows great demand for all types of fertilizers, he said, adding that the company sees the market balanced in the next several years as “Moroccans and Saudis reached their full capacities.”

Nevertheless, the company raised its forecast for capital expenditures in 2019 to 36 billion rubles from 34 billion rubles after buying mineral wagons out of lease. The decision was connected to the central bank’s reduction of the key rate, Guryev said.

He also said that PhosAgro will present a new development strategy until 2025 at its investor day in London at the end of September. The board of directors of the company is to discuss amendments to the dividend policy later this week, he added.

(65.6046 rubles – U.S. $1)

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