PHOSAGRO
For Immediate Release 25 May 2016
PhosAgro Q1 2016 Net Profit up 60% to RUB 22.6 bln
Moscow - PhosAgro ("PhosAgro" or "the Company") (Moscow Exchange, LSE: PHOR),
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).
Q1 2016 financial and operational highlights:
Result Q1 2016 Q1 2015 year-on-year
change (RUB
RUB USD RUB USD vs. RUB), %
million million
Revenue 56,073 751 50,224 808 12%
EBITDA* 25,249 338 24,590 395 3%
EBITDA margin 45% 49% (4 p.p.)
Net profit 22,631 303 14,164 228 60%
RUB USD RUB USD
Earnings per share 175 2 109 2 61%
Sales volumes Kmt Kmt
Phosphate-based 1,431.6 1,304.8 10%
products
Nitrogen-based 429.8 412.5 4%
fertilizers
Apatit mine and 843.7 724.3 16%
beneficiation plant
Other products 21.1 32.3 (35%)
RUB/USD rates: average Q1 2016: 74.6283; average Q1 2015: 62.1919
as of 31 March 2016: 67.6076; as of 31
December 2015: 72.8827
*EBITDA is calculated as operating profit adjusted for depreciation and
amortisation.
Highlights
Interim dividend recommendation:
* At its meeting on 24 May 2016, PhosAgro's Board of Directors recommended
that shareholders approve a dividend of RUB 8,159 million, which represents
RUB 63 per share (RUB 21 per Global Depositary Receipt). Shareholders will
vote on the dividend recommendation at the Extraordinary General Meeting of
Shareholders scheduled for 29 July 2016.
Production, sales and logistics flexibility:
* As a result of debottlenecking activities, the Company managed to increase
production and sales volumes by 10% and 8%, respectively, year-on-year
during Q1 2016. Revenue for the period grew by 12% year-on-year, supported
by an 8% increase in sales volumes and depreciation of the RUB against the
USD.
* In January 2016 PhosAgro signed an 18-month loan agreement for RUB 3
billion with Eximbank of Russia. This will enable the Company to strengthen
flexibility of sales on export markets and to improve the turnover of
PhosAgro's financing resources.
Strategic developments:
* In March 2016, PhosAgro launched another trading office: PhosAgro Baltics
(Warsaw, Poland). This will strengthen the Company's position in its
priority European market. New sales offices enable PhosAgro to better
understand the needs of local customers, help it to react faster to market
demand, facilitate promotion of the PhosAgro brand as the supplier of the
best-quality phosphate-based fertilizers, and ensure that the Company
offers local customers the right nutrient solutions.
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.
Commenting on Q1 2016 results, PhosAgro CEO Andrey Guryev said:
"I am extremely pleased to announce another set of exceptionally strong
results, with PhosAgro's Q1 2016 EBITDA margin reaching 45%, while net profit
margin rose to a record high 40%. It is especially worthy of note that we were
able to achieve this performance in a very challenging environment for the
industry overall.
"DAP/MAP prices bottomed out below USD 350/tonne in February, at or near levels
seen during the 2009 global financial crisis. At the same time, we did not
experience any dramatic decline in demand as in 2009. Fertilizer price
movements in Q1 2016 were mostly driven by global uncertainty related to
overall pressure on oil and other commodity prices. DAP prices have since
stabilised, but are still below average production cash costs for the industry.
As result, we saw significant reductions in production volumes during Q1 2016
across numerous regions, most notably in China. Chinese P2O5 exports have come
down by around 40% year-on-year in the first quarter of 2016, which is very
significant from the country that increased exports in 2015, and accounted for
almost 40% of entire phosphate spot market.
"On the demand side, we think positive trends will significantly outweigh the
negative this year.
"Our domestic market is showing exceptional growth, on the back of higher
agricultural production supported by the food import substitution programme:
our sales of phosphate-based fertilizers in Russia nearly doubled compared to
Q1 2015.
"We have of course also focused significant attention on other priority
markets: Phosphate-based fertilizer sales to Europe, the CIS, and Latin America
represented over 70% of our export sales. In Latin America, we saw an
impressive increase in sales volumes of 49% year-on-year for Q1 2016.
"Overall, trends are positive in the most important fertilizer-consuming
regions: the DAP subsidy in India is supportive for higher demand and prices.
Consumption of DAP in the first quarter increased by 50% compared to Q1 2015.
The biggest issue facing Brazilian farmers, expensive credit, has been
resolved; interest rate subsidies are now in place, and we saw phosphate-based
fertilizer imports increase by more than 30% year-on-year in Q1 2016. Most of
that growth was from complex fertilizers rather than MAP, but for PhosAgro it
makes no difference how we sell our phosphates: we offer 30 different grades of
phosphate-based fertilizers and can expand our portfolio further in respond to
demand from farmers. This is one of the benefits of our exceptionally pure
phosphate rock and our flexible production lines.
"Moving on to our operational achievements, we grew production volumes by 10%
year-on-year on the back of our continuing modernisation and debottlenecking
projects. This, combined with our successful marketing efforts in target
regions and the weak rouble, has compensated for price weakness during the
period. We had excellent free cash flow generation, were able to further reduce
our debt levels, and the Board of Directors has recommend a dividend close to
USD 1 per share.
"Looking ahead to the rest of the year, I expect phosphate-based fertilizer
consumption in 2016 to increase, with more upside risk coming from complex
fertilizers than from concentrated phosphate-based grades, as we saw in the
first quarter. The recent recovery in grain and oil-seed prices will provide
fundamental support for a fertilizer price recovery. We therefore are
proceeding with all of our debottlenecking, optimisation, and marketing
efforts. PhosAgro is ready to adapt to demand in the changing environment,
supplying our wide variety of high-quality fertilizer grades to farmers, while
at the same time continuing to provide good returns to shareholders."
Q1 2016 market conditions:
* The average price of DAP was USD 370/tonne FOB Tampa in Q1 2016, down by
12% from 4Q 2015 (USD 421/tonne), and by 23% from Q1 2015 (USD 483);
* Weak oil and soft commodities prices were the main factors behind the
downwards pressure on fertilizer prices. Increased competition between the
world's main fertilizer producers also affected the market, with seasonally
slow demand from India and Latin America;
* Lower prices led Chinese producers to curtail production and export
volumes. Chinese DAP/MAP exports in Q1 2016 declined by 37% year-on-year
to 888 kt. Overall Chinese export of phosphate-based fertilizers fell by
40% year-on-year to 508 kt of P2O5;
* The decline in Indian subsidy levels was small relative to the decrease in
global phosphate-based fertilizer prices, leading to active import demand
from the country in late-March and April 2016;
* Brazil's programme to subsidise interest rates for farmers has been in
place since the beginning of the year. February and March saw a
significant increase in import demand from Brazil, as well as from
Argentina, where export duties for most agricultural products were lowered
or removed early in the year. Demand from these countries helped to
stabilise global prices, with Brazilian demand for phosphate-based
fertilizers (DAP/MAP/TSP/NP/NPK) in Q1 2016 amounting to 1,024 kt, up by
34% year-on-year. Argentina imported 278 kt of DAP/MAP during Q1 2016, an
increase of 84% year-on-year;
* Global urea prices were also under pressure in Q1 2016, due to seasonally
low demand in India and Latin America, as well as heightened competition in
western European and US markets due to factors like the launch of new US
capacities and higher utilisation rates for north African capacities;
* The average price of urea in Q1 2016 was USD 194/tonne FOB Baltic, which
was 21% lower than 4Q 2015 (USD 246/tonne), and down by 33% from Q1 2015
(USD 289/tonne).
Phosphate-Based Products Segment
Result Q1 2016 Q1 2015 year-on-year
RUB mln RUB mln change, %
Revenue 49,499 42,860 15%
Cost of goods sold (20,565) (16,712) 23%
Gross profit 28,934 26,148 11%
Phosphate-based products segment revenue grew by 15% year-on-year and totalled
RUB 49,499 million (USD 663 million) in Q1 2016. PhosAgro increased production
and sales volumes of phosphate-based fertilizers and MCP by 13% and 10%,
respectively, year-on-year in Q1 2016. Sales volumes for phosphate rock and
nepheline concentrate in Q1 2016 increased by 16% year-on-year.
The growth in fertilizer sales volumes was primarily due to the Company's
flexible production and sales models, which enabled it to substantially
increase sales of MAP, DAP and NPK to the domestic market.
* MAP/DAP fertilizers: Revenue from DAP/MAP sales was down 6% year-on-year,
from RUB 21,113 million (USD 339 million) in Q1 2015 to RUB 19,862 million
(USD 266 million) in Q1 2016, reflecting the overall 4% year-on-year growth
in sales volumes and a 10% decrease in DAP/MAP average revenue per tonne
denominated in RUB.
* NPK fertilizers: Revenue from NPK sales was up by 11% year-on-year, from
RUB 8,910 million (USD 143 million) in Q1 2015 to RUB 9,898 million (USD
133 million) in Q1 2016, reflecting the overall 2% year-on-year growth in
sales volumes and a 9% increase in NPK average revenue per tonne
denominated in RUB.
* Phosphate rock: revenue from phosphate rock sales rose by 55% year-on-year
to RUB 7,858 million (USD 105 million) in Q1 2016. Revenue per tonne in RUB
terms increased by 27% year-on-year. Sales volumes increased by 22%
year-on-year as a result of increased supplies to the domestic market.
The phosphate-based products segment's gross profit for Q1 2016 increased by
11% year-on-year to RUB 28,934 million (USD 388 million), resulting in a gross
profit margin of 58%, compared to a 61% margin in Q1 2015.
Nitrogen Segment
Result Q1 2016 Q1 2015 year-on-year
RUB mln RUB mln change, %
Revenue 6,422 7,028 (9%)
Cost of goods sold (3,068) (2,730) 12%
Gross profit 3,354 4,298 (22%)
Nitrogen segment revenue decreased by 9% year-on-year to RUB 6,422 million (USD
86 million) in Q1 2016, from RUB 7,028 million (USD 113 million) in Q1 2015.
Production volumes of nitrogen-based fertilizers remained the same, while sales
volumes increased by 4% year-on-year.
Export revenue from urea was 15% below year-on-year, from RUB 4,416 million
(USD 71 million) in Q1 2015 to RUB 3,767 million (USD 50 million) in Q1 2016,
due to a 18% year-on-year decrease in revenue per tonne, balanced by increase
in sales volumes of 4% year-on-year. Total revenue from ammonium nitrate (AN)
rose by 3% year-on-year, from RUB 2,507 million (USD 40 million) in Q1 2015, to
RUB 2,585 million (USD 35 million) in Q1 2016, due to 5% year-on-year increase
in sales volumes balanced by 2% year-on-year decrease in revenue per tonne.
Nitrogen segment gross profit for Q1 2016 decreased by 22% year-on-year to RUB
3,354 million (USD 45 million). The gross margin for Q1 2016 was 52%, compared
with 61% in Q1 2015. This was primarily due to the decrease in prices: during
Q1 2016, average revenue per tonne for the Company's nitrogen-based fertilizers
decreased by 12%.
Cost of Sales
Item Q1 2016 Q1 2015 Change y-on-y
RUB USD % of RUB USD % of RUB %
mln mln cost mln mln cost mln
of of
sales sales
Materials and 5,891 79 25% 4,361 70 22% 1,530 35%
services
Salaries and 2,644 35 11% 2,303 37 12% 341 15%
social
contributions
Sulphur and 2,390 32 10% 2,231 36 11% 159 7%
sulphuric
acid
Depreciation 2,253 30 9% 1,884 30 10% 369 20%
Natural gas 2,108 28 9% 1,977 32 10% 131 7%
Ammonia 2,041 27 8% 2,136 34 11% (95) (4%)
Potash 1,816 24 8% 1,519 24 8% 297 20%
Chemical 1,599 22 7% 1,076 18 5% 523 49%
fertilisers
and other
products for
resale
Electricity 1,102 15 5% 977 16 5% 125 13%
Ammonium 814 11 3% 821 13 4% (7) (1%)
sulphate
Fuel 626 9 3% 641 10 3% (15) (2%)
Heating 265 4 1% 241 4 1% 24 10%
energy
Other items 2 - - 3 - - (1) (33%)
Change in 219 3 1% (426) (7) (2%) 645 (151%)
stock of WIP
and finished
goods
Total 23,770 319 100% 19,744 317 100% 4,026 20%
PhosAgro's cost of sales increased by 20% year-on-year in Q1 2016, to RUB
23,770 million (USD 319 million), while overall fertilizers sales volumes
increased by 8% year-on-year. This cost of sales performance was primarily due
to the following factors:
* An increase of RUB 1,530 million (USD 21 million), or 35%, year-on-year in
the cost of materials and services primarily due to a 29% increase in
apatite-nepheline ore mining, 10% growth in fertilizer production volumes,
and 4% year-on-year inflation.
* A year-on-year increase in personnel costs of RUB 341 million (USD 5
million), or 15%, primarily due to payroll indexation.
* An increase in expenditure on sulphur and sulphuric acid of RUB 159 million
(USD 2 million), or 7%, year-on-year from RUB 2,231 million (USD 36
million) in Q1 2015 to RUB 2,390 million (USD 32 million) in Q1 2016. This
was driven by a 14% year-on-year increase in volumes consumed due to higher
production of phosphate-based fertilizers, mainly MAP/DAP and NPK, balanced
by a 6% decline in sulphur and sulphuric acid purchased prices denominated
in RUB.
* A year-on-year decrease in expenditure on purchased ammonia of RUB 95
million (USD 1 million), or 4%, from RUB 2,136 million (USD 34 million) in
Q1 2015 to RUB 2,041 million (USD 27 million) in Q1 2016. This was due to a
20% decline in RUB-denominated prices, balanced by higher purchase volumes,
year-on-year. Growth in ammonia purchase volumes was due to increase in
fertilizer production volumes.
* A year-on-year increase in expenditure on potash of 20%, from RUB 1,519
million (USD 24 million) in Q1 2015, to RUB 1,816 million (USD 24 million)
in Q1 2016. This was mainly due to a 9% rise in RUB-denominated potash
purchase prices and 10% growth in potash purchase volumes as a result of a
7% increase in NPK production volumes with higher potash content.
* A year-on-year increase in expenditure on natural gas of RUB 131 million,
or 7%, to RUB 2,108 million (USD 28 million) in Q1 2016. This was due to
growth in RUB-denominated natural gas purchase prices by 7%.
* A year-on-year increase in expenditure on electricity of RUB 125 million,
or 13%, to RUB 1,102 million (USD 15 million) in Q1 2016. This was due to
growth in RUB-denominated electricity purchase prices by 11% year-on-year.
* A decrease in expenditure on fuel of 2%, from RUB 641 million (USD 10
million) in Q1 2015 to RUB 626 million (USD 9 million) in Q1 2016. This was
mainly driven by an 8% increase in heating oil consumption balanced by a
10% decline in overall fuel purchase prices denominated in RUB. Heating oil
is primarily used for drying of phosphate rock and nepheline concentrate,
for which production volumes grew by 6% and 8% year-on-year, respectively.
Administrative expenses rose by 21% year-on-year to RUB 2,903 million (USD 39
million) in Q1 2016, primarily due to an increase in personnel costs of RUB 347
million (USD 5 million), or 26%, year-on-year. The increase was mainly due to
the indexation of salaries.
Selling expenses rose by 16% year-on-year, from RUB 4,920 million (USD 79
million) in Q1 2015 to RUB 5,722 million (USD 77 million) in Q1 2016. This was
primarily due to the following changes:
* Russian Railways infrastructure tariff and operators' fees increased by 37%
from RUB 1,530 million (USD 25 million) in Q1 2015 to RUB 2,093 million
(USD 28 million) in Q1 2016. This was mainly due to an increase in railway
tariffs in Q1 2016 by 9% as well as a 31% increase in shipments to the
domestic market, where the basic delivery term is CPT.
* Growth of 20% in materials and services from RUB 866 million (USD 14
million) in Q1 2015, to RUB 1,039 million (USD 14 million) in Q1 2016. This
was mainly driven by an increase in multimode shipment volumes on the
export market.
After the commissioning of Smart Bulk Terminal in June 2015, the Company
transferred its shipping activity from Baltic ports to Ust-Luga. This helped
the Company to achieve sustainable savings in freight, port and stevedoring
expenses, which decreased by 2%, from RUB 2,364 million (USD 38 million) in Q1
2015 to RUB 2,318 million (USD 31) in Q1 2016.
PhosAgro's foreign exchange gain in Q1 2016 was RUB 6,867 million (USD 92
million), versus a foreign exchange loss of RUB 3,777 million (USD 61 million)
in Q1 2015. This was primarily the result of the devaluation of USD-denominated
debt due to the rouble's 7% appreciation against the US dollar during Q1 2016
(from RUB 72.8827 at 31/12/2015 to RUB 67.6076 at 31/03/2016), in comparison
with a 4% rouble depreciation against the US dollar during Q1 2015 (from RUB
56.2584 as of 31/12/2014 to RUB 58.4643 as of 31/03/2015).
Cash spent on capex in Q1 2016 amounted to RUB 8,587 million (USD 115 million),
an increase of 33% in comparison with RUB 6,477 million (USD 104 million) in Q1
2015. PhosAgro's capital expenditure, which consists of additions to property,
plant and equipment, amounted to RUB 7,659 million (USD 103 million) for Q1
2016, compared to RUB 5,054 million (USD 81 million) in Q1 2015. Capital
expenditure focused on construction of the new 760 ths tonnes/year ammonia
plant and the new 500 ths tonnes/year urea plant at PhosAgro-Cherepovets.
Outlook
Market outlook
* June marks the start of seasonal demand from key markets in Asia (India,
Pakistan) and Latin America (Brazil, Argentina), with the highest levels of
activity taking place from June to September; this is expected to have a
stabilising effect on the market;
* At the same time, the decline in prices during Q1 2016 has made fertilizers
more accessible to consumers, with the ratio of fertilizer prices to
agricultural products prices currently more favourable for fertilizers,
meaning that stable demand can be expected from all fertilizer-consuming
regions;
* In addition, recent increases in soft commodities prices, especially corn
and soy, may stimulate farmers to increase crop acreage, as well higher
fertilizer application volumes;
* On the supply side, China clearly remains a key player for global markets.
However, following the decline in prices, Chinese export this year is
likely to decrease and loss-making capacities are expected to remain shut;
* Reduced Chinese export is more likely to be compensated by increase of
export from OCP with the launch in Morocco of a new 1 million tonne/year
DAP/MAP/NPK capacity at the end of 2015, and another 1.0 million tonnes due
to come online in mid-2016. Otherwise, high levels of competition may
continue to hold back fertilizer price growth.
Company:
* The rouble depreciation, which accelerated at the end of 2015, continued in
Q1 2016, and there is limited potential for significant appreciation unless
oil prices increase dramatically.
* As a result of marketing efforts at new sales offices, the Company expects
to further increase sales in its target regions, and intends to invest
further into expanding the number of NPK and other fertilizer grades it
produces.
* All major development projects are on track, including the new ammonia
plant designed to increase cost efficiency and support further expansion of
PhosAgro's complex fertilizer production capacity.
Conference call and webcast
Today PhosAgro will hold a conference call and webcast to present its Q1 2016
results at 14:30 London time (16:30 Moscow; 09:30 New York).
The call will be held in English, with simultaneous translation into Russian on
a separate line.
Webcast links:
English: http://event.onlineseminarsolutions.com/r.htm?e=1198782&s=1&k=
EDDE6C47C4D619DD5F5CB9A02B73687C
Russian: http://event.onlineseminarsolutions.com/r.htm?e=1198779&s=1&k=
39512E52CD515077C23D5644CFB46B3F
Participant Dial-in numbers:
Russia:
+7 495 221 6523
UK:
+44 203 043 2440
08082381774
USA:
1 877 887 4163
Conference ID numbers:
English call: 83424339#
Russian call: 62662190#
For further information please contact:
OJSC PhosAgro
Irina Evstigneeva, Head of Corporate Finance and Investor Relations
ir@phosagro.ru
+7 495 231 3115
Timur Belov, Press Officer
Anastacia Basos, Deputy Press Secretary
+7 495 232 9689
EM
Sam VanDerlip
vanderlip@em-comms.com
+44 7554 993 032
+7 499 918 3134
Notes to Editors
PhosAgro is one of the leading global vertically integrated phosphate-based
fertilizer producers. The Company focuses on the production of phosphate-based
fertilizers, feed phosphate and high-grade phosphate rock (P2O5 content of not
less than 39%), as well as ammonia and nitrogen-based fertilizers.
The Company is the largest phosphate-based fertilizer producer in Europe, the
largest producer of high-grade phosphate rock worldwide and the third largest
MAP/DAP producer in the world (excluding China), according to Fertecon.
PhosAgro is also one of the leading producers of feed phosphates (MCP) in
Europe, and the only producer in Russia.
PhosAgro has 2.1 billion tonnes of resources (according to JORC) of high
quality apatite-nepheline ore. The Company's mines and phosphate rock
production facilities are located in the mountainous areas of the Kola
Peninsula in the Murmansk region of northwest Russia, whereas its fertilizer
and feed phosphate production assets are located near the city of Cherepovets
in the Vologda region and near the city of Balakovo in the Saratov region of
southwest part of European Russia.
PhosAgro's 2015 IFRS revenue was over USD 3.1 bln and EBITDA was USD 1.4 bln.
For further information on PhosAgro please visit: http://www.phosagro.com/
Consolidated Interim Condensed Statement of Profit or Loss and Other
Comprehensive Incomefor the three months ended 31 March 2016 (unaudited)
Three months ended 31 March
2016 2015
RUB Million RUB Million
Revenues 56,073 50,224
Cost of sales (23,770) (19,744)
Gross profit 32,303 30,480
Administrative expenses (2,903) (2,403)
Selling expenses (5,722) (4,920)
Taxes, other than income tax (517) (566)
Other expenses, net (472) (121)
Operating profit 22,689 22,470
Finance income 193 376
Finance costs (1,386) (1,743)
Foreign exchange gain/(loss) 6,867 (3,777)
Share of profit of associates 27 60
Profit before tax 28,390 17,386
Income tax expense (5,759) (3,222)
Profit for the period 22,631 14,164
Attributable to:
Non-controlling interests ^ 7 3
Shareholders of the Parent 22,624 14,161
Other comprehensive income
Actuarial gains and losses, net of tax (10) (135)
Foreign currency translation (1,095) 388
difference
Other comprehensive (loss)/income for (1,105) 253
the period
Total comprehensive income for the 21,526 14,417
period
Attributable to:
Non-controlling interests ^ 7 3
Shareholders of the Parent 21,519 14,414
Basic and diluted earnings per share 175 109
(in RUB)
Consolidated Interim Condensed Statement of Financial Position as at 31 March
2016 (unaudited)
31 March 2016 31 December 2015
RUB million RUB million
Assets
Property, plant and equipment 125,768 120,952
Intangible assets 674 566
Investments in associates 797 810
Deferred tax assets 5,562 5,901
Other non-current assets 10,653 10,246
Non-current assets 143,454 138,475
Other current investments 4,585 4,902
Inventories 18,423 17,814
Current income tax receivable 324 453
Trade and other receivables 25,002 25,511
Cash and cash equivalents 26,323 29,347
Current assets 74,657 78,027
Total assets 218,111 216,502
Equity
Share capital 372 372
Share premium 7,494 7,494
Retained earnings 57,850 43,460
Other reserves 7,554 8,659
Equity attributable to shareholders of the 73,270 59,985
Parent
Equity attributable to non-controlling 220 213
interests
Total equity 73,490 60,198
Liabilities
Loans and borrowings 97,308 105,565
Defined benefit obligations 435 424
Deferred tax liabilities 3,768 3,677
Non-current liabilities 101,511 109,666
Trade and other payables 14,765 17,011
Current income tax payable 2,686 491
Loans and borrowings 25,631 28,947
Derivative financial liabilities 28 189
Current liabilities 43,110 46,638
Total equity and liabilities 218,111 216,502
Consolidated Interim Condensed Statement of Cash Flows for the three months
ended 31 March 2016 (unaudited)
Three months ended 31 March
2016 2015
RUB million RUB million
Cash flows from operating activities
Profit before tax 28,390 17,386
Adjustments for:
Depreciation and amortisation 2,560 2,120
Loss on disposal of fixed assets 109 1
Finance income (193) (376)
Finance costs 1,386 1,743
Share of profit of associates (27) (60)
Foreign exchange (gain)/loss (7,451) 3,080
Operating profit before changes in working capital and 24,774 23,894
provisions
Increase in inventories (609) (702)
Decrease/(increase) in trade and other receivables 561 (3,363)
Decrease in trade and other payables (1,487) (699)
Cash flows from operations before income taxes and 23,239 19,130
interest paid
Income tax paid (3,002) (843)
Finance costs paid (1,739) (2,017)
Cash flows from operating activities 18,498 16,270
Cash flows from investing activities
Acquisition of property, plant and equipment (8,587) (6,477)
Loans repaid, net 169 131
Acquisition of intangible assets (128) (23)
Proceeds from disposal of property, plant and equipment 194 81
Finance income received 105 242
Cash flows used in investing activities (8,247) (6,046)
Cash flows from financing activities
Proceeds from borrowings 2,131 19,638
Repayment of borrowings (4,486) (19,326)
Dividends paid to shareholders of the Parent (8,159) (2,590)
Finance leases paid (572) (483)
Proceeds from/(payments for) settlement of derivatives 10 (285)
Other payments (75) -
Cash flows used in financing activities (11,151) (3,046)
Net (decrease)/increase in cash and cash equivalents (900) 7,178
Cash and cash equivalents at 1 January 29,347 30,687
Effect of exchange rates fluctuations (2,124) 885
Cash and cash equivalents at 31 March 26,323 38,750
PhosAgro : OJSC PHOSAGRO - PhosAgro Q1 2016 Net Profit up 60% to RUB 22.6 bln
May 25, 2016 at 05:16 am EDT
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© PRNewswire - 2016
