June 19, 2012
Russian Phosagro's Q1 net income up 29% on-year
As it reported a 29% on-year rise in its first quarter net income, Russian fertiliser group Phosagro predicted high grain prices would continue to drive to demand.
Net profit at the world's second-largest phosphate producer after Minnesota-based Mosaic Co rose to US$266 million in January-March, the company said on Monday (June 18).
Sales climbed to US$856 million, while adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) edged up to US$313 million.
The fertiliser industry has been a hot sector for investors over the last year, as the world's rising population and unpredictable weather patterns have piled pressure on food supplies.
Phosagro, which raised US$538 million in a London IPO in 2011, plans to increase fertiliser production and sales in 2012 and said it believes the market will remain stable.
During the first quarter Russia, Europe, the US, and Brazil showed very strong demand, while the Indian market was challenging, Phosagro said.
Indian demand is recovering, however, and Phosagro does not expect any serious slowdowns this year, while record planting acreage and historically high prices for key grains will drive demand for fertilisers, the company added.
Phosagro's global depository receipts (GDRs) began to rise after the statement and were up 1.7% at US$10.55 by 0906 GMT, compared with an IPO price of US$14 per share.