OREANDA-NEWS. PhosAgro, one of the world’s leading vertically integrated phosphate-based fertilizer producers, today announces its interim condensed consolidated IFRS financial results for the three months ended 31 March 2016. 

PhosAgro’s revenue for the period increased by 12% year-on-year to RUB 56.1 billion (USD 751 million), while EBITDA grew by 3% year-on-year to RUB 25.2 billion (USD 338 million).

Operating profit for the period was RUB 22.7 billion (USD 304 million), up 1% from RUB 22.5 billion (USD 361 million) in Q1 2015. PhosAgro’s EBITDA was RUB 25.2 billion (USD 338 million) in Q1 2016, 3% higher year-on-year. The EBITDA margin decreased to 45% for Q1 2016, compared to 49% in Q1 2015. 

Net profit for Q1 2016 increased by 60% to RUB 22.6 billion (USD 303 million), compared to RUB 14.2 billion (USD 228 million) in Q1 2015. Basic and diluted earnings per share increased by 61% to RUB 175 (USD 2) for Q1 2016 from RUB 109 (USD 2) in Q1 2015. 

The higher average USD exchange rate during Q1 2016 in comparison with Q1 2015 (average USD foreign exchange rates for Q1 2016 and Q1 2015 were RUB 74.63 and RUB 62.19, respectively) had a net positive impact on PhosAgro’s results in the reporting period, as prices for most of the Company’s products are denominated in USD, while costs are primarily RUB-based. Appreciation of the rouble as of 31 March 2016 (RUB 67.61 per USD) compared to 31 December 2015 (RUB 72.88 per USD) resulted in a foreign exchange gain of RUB 6,867 million (USD 92 million) in Q1 2016; in Q1 2015 the foreign exchange loss was RUB 3,777 million (USD 61 million). 

Cash flow from operating activities increased by 14% year-on-year in Q1 2016, to RUB 18.5 billion (USD 248 million), compared to RUB 16.3 billion (USD 262 million) in Q1 2015, driven by improved operating performance and the favourable effect of the rouble depreciation. 

Gross debt at 31 March 2016 amounted to RUB 122.9 billion (USD 1,818 million), compared to RUB 134.5 billion (USD 1,846 million) at 31 December 2015. Net debt at 31 March 2016 stood at RUB 96.6 billion (USD 1,429 million), down from 105.2 billion (USD 1,443 million) at 31 December 2015, as a result of RUB 2 billion of net repayments and rouble appreciation vs USD as of 31 March 2016. Most of the Company’s debt is denominated in US dollars as a natural hedge against primarily USD-denominated sales. The Company’s net debt to EBITDA ratio decreased to 0.96 as of 31 March 2016, from 1.28 as of 31 December 2015.