PHOSAGRO
For Immediate Release 27 March 2017
PhosAgro 2016 Net Profit up 64% to RUB 59.9 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 audited consolidated IFRS financial results for
the 12 months ended 31 December 2016.
PhosAgro's revenue for the period decreased by 1% year-on-year to RUB 187.7
billion (USD 2,801 million). EBITDA for 2016 was RUB 72.4 billion (USD 1,080
million), with an EBITDA margin of 39%. EPS increased by 64% year-on-year to
RUB 462, from RUB 281 for 2015.
FY2016 financial and operational highlights:
Result 2016 2015 year-on-year
change (RUB
RUB USD RUB USD vs. RUB), %
million million
Revenue 187,742 2,801 189,732 3,113 (1%)
EBITDA* 72,365 1,080 82,464 1,353 (12%)
EBITDA margin 39% 43% (4 p.p.)
Net profit 59,886 893 36,436 598 64%
RUB USD RUB USD
Earnings per 462 7 281 5 64%
share
Sales volumes Kmt Kmt
Phosphate-based 5,925.3 5,383.9 10%
products
Nitrogen-based 1,394.0 1,365.4 2%
fertilizers
Apatit mine and 3,418.0 2,917.0 17%
beneficiation
plant
Other products 94.1 102.6 (8%)
RUB/USD rates: average 2016: 67.0349; average 2015: 60.9579
as of 31 December 2016: 60.6569; as of 31 December
2015: 72.8827
*EBITDA is calculated as operating profit adjusted for depreciation and
amortisation.
Annual dividend recommendation:
* At its meeting on 21 March 2017, PhosAgro's Board of Directors recommended
that shareholders approve a dividend of RUB 3,885 million, which represents
RUB 30 per share (RUB 10 per Global Depositary Receipt). Shareholders will
vote on the dividend recommendation at the Annual General Meeting of
Shareholders scheduled for 30 May 2017.
Production and sales:
* During 2016, fertilizer production and sales volumes grew both by 9%
year-on-year thanks to the ongoing debottlenecking activities. Despite
higher volumes and further RUB depreciation, revenue for the period
decreased by 1% year-on-year due to lower global fertilizer prices.
EBITDA for 2016 decreased by 12% year-on-year to RUB 72.4 billion (USD 1,080
million) from RUB 82.5 billion (USD 1,353 million) in 2015. The EBITDA margin
for the period declined by 4 p.p. to 39%, compared to 43% a year earlier.
PhosAgro's operating profit in the reporting period was RUB 61.6 billion (USD
919 million), a 16% decrease from RUB 73.3 billion (USD 1,203 million) in 2015.
Net profit for 2016 grew 64% year-on-year to RUB 59.9 billion (USD 893
million), compared to RUB 36.4 billion (USD 598 million) in 2015. Basic and
diluted earnings per share increased by 64% to RUB 462 (USD 7) for 2016 from
RUB 281 (USD 5) in 2015.
The higher average USD/RUB exchange rate during 2016 in comparison with 2015
(average USD/RUB foreign exchange rates for 2016 and 2015 were RUB 67.03 and
RUB 60.96, 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. At the same time, the appreciation
of the rouble as of 31 December 2016 (RUB 60.66 per USD) compared to 31
December 2015 (RUB 72.88 per USD) resulted in a foreign exchange gain of RUB
16,962 million (USD 253 million) in 2016; in 2015 the foreign exchange loss was
RUB 22,178 million (USD 364 million).
Cash flow from operating activities decreased by 20% year-on-year in 2016, to
RUB 50.4 billion (USD 751 million), compared to RUB 63.3 billion (USD 1,038
million) in 2015, due to lower operating cash flow and higher income tax
payments, which was partially offset by favourable changes in working capital.
Gross debt at 31 December 2016 decreased to RUB 112.4 billion (USD 1,853
million), compared to RUB 134.5 billion (USD 1,846 million) at 31 December
2015. Net debt at 31 December 2016 stood at RUB 105.1 billion (USD 1,733
million), down from RUB 105.2 billion (USD 1,443 million) at 31 December 2015,
as a result of rouble appreciation against the USD as of 31 December 2016. Most
of the Company's debt is denominated in US dollars and naturally hedged by
primarily USD-denominated sales. The Company's net debt to EBITDA ratio
increased to 1.45 as of 31 December 2016, from 1.28 as of 31 December 2015.
Commenting on the 2016 results, PhosAgro CEO Andrey Guryev said:
"I am very pleased that, despite the challenging environment in 2016 - a year
when phosphate and nitrogen prices bottomed out at levels last seen during the
2009 financial crisis, PhosAgro continues to generate solid operating cash
flows and, despite being in a capex-intensive period, is paying robust
dividends to its shareholders. The total amount of dividends for 2016 has
reached RUB 165 per share (RUB 55 per GDR), which represents a sector-leading
dividend yield of over 6%. Since the IPO in 2011, PhosAgro has paid out almost
USD 1.7 billion as dividends, which implies a more than 30% return on the IPO
price. In terms of financial performance, in 2016 we delivered an EBITDA margin
of nearly 40%, which remains an unachievable target for even our most
integrated and largest phosphate-based fertilizer peers.
"Strong operating performance is one of PhosAgro's key fundamental strengths.
In 2016 we managed to increase overall fertilizer production by 9.4%
year-on-year on the back of continued modernisation and debottlenecking
projects. Since 2012 when we initiated the debottlenecking programme,
production of phosphate-based fertilizers has grown by 1.6 mln tonnes, or by
37%. At the same time, this debottlenecking programme cost PhosAgro only USD 95
million, or USD 59 per tonne of new capacity, which is far below any green- or
brownfield project in the sector.
"Turning to the market environment, I would like to highlight the tremendous
performance of our domestic market in 2016: demand grew by 16% year-on-year for
all fertilizers, and by 24% year-on-year for phosphate-based fertilizers (DAP/
MAP/NPK). During the same period, our total domestic sales grew by more than
30% year-on-year and reached almost 2.1 million tonnes. Looking at our
performance since the IPO in 2011, PhosAgro's domestic sales have more than
doubled, and our market share has reached almost 30%. We are extremely pleased
that our home market holds one of the best growth opportunities globally thanks
to state support for the agriculture industry.
"Global demand for phosphate-based fertilizers remained robust in 2016, and
grew by more than 3% according to preliminary numbers from IFA. Growing demand
was supported by a recovery in consumption in Latin America, driven by stable
soybean prices and favourable exchange rates. Both factors helped farmers in
Brazil and Argentina to maintain highly attractive margins on soybean
production. Furthermore, the profitability of farmers in Argentina was
supported by a reduction in export duties. India's phosphate consumption
remained stable despite challenges related to the currency reform.
"On the supply side, lower production and exports from China due to rising cash
costs and new environmental restrictions were offset by higher volumes from
other major players that have undertaken large-scale development programmes, as
well as increased production from non-integrated players due to low feedstock
prices.
"Looking ahead to 2017, we have started the year at prices that represent
historical lows for the past 10 years. However during January-February we
witnessed a combination of fundamental factors that played out simultaneously
and pushed DAP/MAP prices up by USD 50-70 to USD 375 per tonne DAP FOB Tampa
and USD 370-385 per tonne MAP FOB Baltics. These factors included the quick
development of the high season in key agriculture regions, tight product
availability on the seaborne market due to minimal export flows from China, and
rising cash costs in the industry due to a sharp recovery in feedstock prices.
I expect price seasonality in 2017 to be in line with what the market sees in a
normal year. In terms of potential downside risks, we believe that new
production capacities coming online in North Africa and Saudi Arabia could
constrain potential price growth.
"Returning to PhosAgro and our plans, we remain focused on completing our main
investment projects on schedule. These projects aim to improve self-sufficiency
in ammonia, increase production volumes, and further reduce cash costs to
sustain Company's leading position in the sector. These contributions to our
performance going forward, in addition to reduced capital expenditure, should
further improve our free cash flow, which I expect should be reflected in
returns to shareholders."
FY2016 market conditions:
* The average prices of DAP (FOB Tampa) and MAP (FOB Baltics/Black Sea) in
2016 were USD 347 per tonne and USD 339 per tonne, which represent
respective year-on-year declines of 24% and 26%. The decrease in global
prices for phosphate-based fertilizers was triggered by weak market
conditions in the main commodity markets, combined with a higher supply of
fertilizers from new capacities in Morocco (2 million tonnes of DAP/MAP/NPS
/NPK in 1Q 2016 and 3Q 2016), and heightened competition.
* A significant decrease in major feedstock prices triggered a spike in
India's domestic DAP production, which lowered demand for import volumes.
DAP import into India for 2016 stood at 4.3 million tonnes, which implies a
30% year-on-year decline. The import of NP/NPKs into India dropped by 26%
year-on-year to 0.5 million tonnes.
* Relatively low prices for phosphate-based fertilizers, coupled with
favourable economics in Brazil's and Argentina's agriculture industries,
spurred a recovery in consumption and import of phosphate-based
fertilizers. In 2016, DAP/MAP/TSP/NP/NPK imports grew by 23% year-on-year
and exceeded 6.3 million tonnes, including 2.7 million tonnes of imported
MAP. Liberalisation of agricultural export rules in Argentina was an
additional driver of growth in fertilizer consumption. Argentina's DAP/MAP
imports in 2016 grew by 74% year-on-year to 1.15 million tonnes.
* Export of phosphate-based fertilizers (DAP/MAP/NP/TSP) from China in 2016
declined by 19% year-on-year to 10.1 million tonnes. Separately, the export
of DAP dropped by 15% year-on-year, to 6.8 million tonnes. Production
curtailments due to low efficiency and stricter environmental regulations
were the key reasons for the decline in exports.
* The average urea price (FOB Baltic) in 2016 stood at USD 194 per tonne vs.
USD 267 per tonne in 2015. The decline in prices was driven by two factors:
1) stronger competition on the main markets thanks to the launch of the new
capacities in the Middle East and US, and 2) a nearly 3.0 million tonne
year-on-year decline in urea export to India due to growth in domestic
production.
Main feedstock prices:
* In 2016 the average price of ammonia (FOB Yuzhny) was USD 240 per tonne,
which implies a 38% year-on-year decline from USD 390 per tonne in 2015. In
the course of the year, the price for ammonia touched USD 165-170 per tonne
(October), which is the lowest level since the crisis in 2008-09.
* The average price for sulphur (FOB Middle East) in 2016 was USD 85 per
tonne, which implies a 42% year-on-year decrease.
* The average price for phosphate rock (FOB Morocco with 32% P2O5 content) in
2016 was USD 106 per tonne, a year-on-year decline of USD 19 per tonne.
Phosphate-Based Products Segment
Result 2016 2015 year-on-year
RUB mln RUB mln change, %
Revenue 168,136 167,430 -
Cost of goods sold (74,667) (70,344) 6%
Gross profit 93,469 97,086 (4%)
Phosphate-based products segment revenue increased slightly to RUB 168.1
billion (USD 2,508 million) in 2016. PhosAgro increased both production and
sales volumes of phosphate-based fertilizers and MCP by 11% year-on-year in
2016. Sales volumes for phosphate rock and nepheline concentrate in 2016
increased by 17% 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 increase
substantially sales of MAP and NPK to the domestic market, NPS to export
markets, and phosphate rock to both markets.
* MAP/DAP fertilizers: revenue from DAP/MAP sales was down by 13%
year-on-year, from RUB 73.4 billion (USD 1,203 million) in 2015 to RUB 63.9
billion (USD 953 million) in 2016, reflecting a 15% year-on-year decrease
in DAP/MAP average revenue per tonne denominated in RUB and an overall 2%
year-on-year growth in sales volumes.
* NPK fertilizers: revenue from NPK sales increased by 1% year-on-year, from
RUB 38.9 billion (USD 638 million) in 2015 to RUB 39.2 billion (USD 585
million) in 2016, reflecting the 9% year-on-year increase in sales volumes
and an overall 7% year-on-year decrease in NPK average revenue per tonne
denominated in RUB.
* Phosphate rock: revenue from phosphate rock sales rose by 36% year-on-year
to RUB 26.0 billion (USD 388 million) in 2016. Revenue per tonne in RUB
terms increased by 9% year-on-year. Sales volumes increased by 25%
year-on-year as a result of increased supplies to both export and domestic
markets.
The phosphate-based products segment's gross profit for 2016 decreased by 4% to
RUB 93.5 billion (USD 1,394 million), resulting in a gross profit margin of
56%, compared to a 58% margin in 2015.
Nitrogen Segment
Result 2016 2015 year-on-year
RUB mln RUB mln change, %
Revenue 18,829 21,574 (13%)
Cost of goods sold (11,025) (12,063) (9%)
Gross profit 7,804 9,511 (18%)
Nitrogen segment revenue decreased from RUB 21.6 billion (USD 354 million) in
2015 to RUB 18.8 billion (USD 281 million) in 2016. PhosAgro increased
production and sales volumes of nitrogen-based fertilizers by 4% and 2%,
respectively, year-on-year in 2016.
Export revenue from urea declined from RUB 15.7 billion (USD 258 million) in
2015 to RUB 13.3 billion (USD 199 million) in 2016. The decrease in revenue
per tonne of 18% year-on-year was partially balanced by a 3% year-on-year
increase in sales volumes. Total revenue from ammonium nitrate (AN) decreased
by 13% year-on-year, from RUB 5.4 billion (USD 88 million) in 2015, to RUB 4.6
billion (USD 69 million) in 2016, due to a 10% year-on-year decrease in sales
volumes and a 4% year-on-year decrease in revenue per tonne.
Nitrogen segment gross profit for 2016 decreased by 18% year-on-year to RUB 7.8
billion (USD 116 million). The gross margin for 2016 was 41%, compared with 44%
in 2015. This was primarily due to the decrease in prices: during 2016, average
revenue per tonne for the Company's nitrogen-based fertilizers decreased by
15%.
Cost of Sales
Item 2016 2015 Change y-on-y
RUB USD % of RUB USD % of RUB %
cost cost
mln mln of mln mln of mln
sales sales
Materials and 25,746 384 30% 22,905 376 27% 2,841 12%
services
Salaries and 10,784 161 12% 10,155 167 12% 629 6%
social
contributions
Depreciation 9,377 140 11% 8,057 132 10% 1,320 16%
Natural gas 8,084 121 9% 7,484 123 9% 600 8%
Potash 7,104 106 8% 7,559 124 9% (455) (6%)
Sulphur and 6,065 90 7% 8,385 138 10% (2,320) (28%)
sulphuric acid
Ammonia 5,801 87 7% 8,190 134 10% (2,389) (29%)
Electricity 4,462 67 5% 3,927 64 5% 535 14%
Chemical 4,254 63 5% 4,091 67 5% 163 4%
fertilisers and
other products
for resale
Ammonium 2,547 38 3% 2,176 36 3% 371 17%
sulphate
Fuel 2,299 34 3% 2,865 47 3% (566) (20%)
Heating energy 676 10 1% 718 12 1% (42) (6%)
Other items 42 1 - 23 - - 19 83%
Change in stock (850) (13) (1%) (3,471) (57) (4%) 2,621 (76%)
of WIP and
finished goods
Total 86,391 1,289 100% 83,064 1,363 100% 3,327 4%
PhosAgro's cost of sales increased by 4% year-on-year in 2016, to RUB 86.4
billion (USD 1,289 million), while overall fertilizer sales volumes increased
by 9% year-on-year. This cost of sales performance was primarily due to the
following factors:
* An increase of RUB 2.8 billion (USD 42 million), or 12%, year-on-year in
the cost of materials and services primarily due to an increase in repair
expenses, a 23% increase in apatite-nepheline ore mining, 9% growth in
fertilizer production volumes, and 5% year-on-year inflation.
* A year-on-year increase in personnel costs of RUB 629 million (USD 9
million), or 6%, primarily due to payroll indexation and PhosAgro
15th-anniversary bonuses.
* A decrease in expenditure on sulphur and sulphuric acid of RUB 2.3 billion
(USD 35 million), or 28%, year-on-year from RUB 8.4 billion (USD 138
million) in 2015 to RUB 6.1 billion (USD 90 million) in 2016. This was
driven by a 34% decline in sulphur and sulphuric acid purchase prices
denominated in RUB, which was partially offset by a 9% year-on-year
increase in volumes consumed due to higher production of phosphate-based
fertilizers, mainly MAP/DAP and NPS.
* A year-on-year decrease in expenditure on purchased ammonia of RUB 2.4
billion (USD 36 million), or 29%, from RUB 8.2 billion (USD 134 million) in
2015 to RUB 5.8 billion (USD 87 million) in 2016. This was mainly due to a
30% decline in RUB-denominated prices, which was slightly offset by a 1%
year-on-year decrease in consumption volumes.
* A year-on-year decrease in expenditure on potash of 6%, from RUB 7.6
billion (USD 124 million) in 2015, to RUB 7.1 billion (USD 106 million) in
2016. This was due to a 16% decrease in RUB-denominated prices and 11%
growth in purchase volumes as a result of a 7% increase in NPK production
during the period.
* A year-on-year increase in expenditure on natural gas of RUB 600 million
(USD 9 million), or 8%, to RUB 8.1 billion (USD 121 million) in 2016. This
was mainly due to an 8% increase in ammonia production volumes.
* A year-on-year increase in expenditure on electricity of RUB 535 million
(USD 8 million), or 14%, to RUB 4.5 billion (USD 67 million) in 2016. This
was due to a 7.5% indexation in tariffs since 1 July 2016, and a 9%
year-on-year increase in phosphate rock production volumes (Apatit is the
main consumer of electricity from third parties).
* A year-on-year increase in expenditure on ammonium sulphate of RUB 371
million (USD 6 million), or 17%. This was due to 32% year-on-year growth in
ammonium sulphate purchase volumes as a result of higher production volumes
of NPS. Purchase prices decreased by 11% year-on-year in 2016.
* A decrease in expenditure on fuel by 20%, from RUB 2.9 billion (USD 47
million) in 2015 to RUB 2.3 billion (USD 34 million) in 2016. This was
driven by a 14% decline in overall fuel purchase prices denominated in RUB.
Lower fuel consumption volumes resulted from an increase in extraction of
apatite-nepheline ore from underground mining, where electricity is
primarily consumed.
* A year-on-year decrease in heating energy expenses of RUB 42 million (USD 1
million), or by 6%, from RUB 718 million (USD 12 million) in 2015 to RUB
676 million (USD 10 million) in 2016. This was mainly due to a 5% decline
in RUB-denominated prices.
Administrative expenses rose by 14% year-on-year to RUB 13.9 billion (USD 207
million) in 2016, primarily due to an increase in personnel costs of RUB 1.1
billion (USD 16 million), or 16%, year-on-year. The increase was mainly due to
the indexation of salaries, PhosAgro 15th-anniversary bonuses, and the
relocation of a significant proportion of operational management to
Cherepovets.
Selling expenses rose by 19% year-on-year, from RUB 17.8 billion (USD 291
million) in 2015 to RUB 21.1 billion (USD 315 million) in 2016. This was
primarily due to the following changes:
* Russian Railways infrastructure tariff and operators' fees increased by 34%
from RUB 6.1 billion (USD 100 million) in 2015 to RUB 8.2 billion (USD 122
million) in 2016. This was mainly due to an increase in railway tariffs by
9% since 1 January 2016, as well as growth in fertilizer sales (primarily
to the domestic market, where predominantly CPT shipments increased by 31%
year-on-year).
* Growth of 54% in materials and services from RUB 1.6 billion (USD 27
million) in 2015, to RUB 2.5 billion (USD 37 million) in 2016. This was
mainly driven by an increase in multimode shipment volumes to export
markets.
* Growth in freight, port and stevedoring expenses by 2%, from RUB 9.2
billion (USD 151 million) in 2015 to RUB 9.4 billion (USD 140 million) in
2016 mainly due to an increase in export shipment volumes of 7%. After the
commissioning of Smart Bulk Terminal in June 2015, the Company transferred
its shipping activity from Baltic ports to Ust-Luga. This helped PhosAgro
to achieve sustainable savings in port fees, which was balanced by an
increase in export shipment volumes.
PhosAgro's foreign exchange gain in 2016 was RUB 16.96 billion (USD 253
million), versus a foreign exchange loss of RUB 22.2 billion (USD 364 million)
in 2015. This was primarily the result of the devaluation of USD-denominated
debt due to the rouble's 17% appreciation against the US dollar during 2016
(from RUB 72.8827 at 31/12/2015 to RUB 60.6569 at 31/12/2016), in comparison
with 30% rouble depreciation against the US dollar during 2015 (from RUB
56.2584 as of 31/12/2014 to RUB 72.8827 as of 31/12/2015).
Cash spent on capital expenditure in 2016 amounted to RUB 40.2 billion (USD 600
million), a decrease of 6% in comparison with RUB 42.7 billion (USD 700
million) in 2015. PhosAgro's capital expenditure, which consists of additions
to property, plant and equipment, amounted to RUB 45.3 billion (USD 676
million) for 2016, compared to RUB 44.2 billion (USD 725 million) in 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
* The start of spring season in Western Europe, the US, and Latin America
coupled with very tight export flows from China (due to a primary focus on
the domestic market) supported prices at the beginning of 2017.
* DAP/MAP prices have grown by USD 50-70 per tonne from the lows seen in
October-November 2016, and now stand at USD 375 per tonne for DAP (FOB
Tampa) and USD 370-385 per tonne for MAP (FOB Baltics).
* Urea prices touched USD 260 per tonne (FOB Baltics) in February, which
implies a nearly USD 100 per tonne recovery from the bottom in the middle
of 2016.
* The average utilisation rates in the Chinese fertilizer industry remain
low, standing at 60% for urea production and 60-70% for phosphate-based
fertilizers. Taken together, this limits export flows of all types of
fertilizers from China to the seaborne market.
* Indian rupee appreciation (at the beginning of 2017), coupled with
expectations of a subsidy hike for phosphate-based fertilizers is likely to
support import demand for DAP/NPK/NPS in 2017.
* The demand for phosphates in Latin America (Brazil and Argentina) is likely
to remain robust on the back of still favourable margins in the
agricultural industry and low fertilizer stocks.
* Looking ahead, the beginning of the high season in Latin America (Brazil)
and South Asia (India and Pakistan) is an additional supporting factor for
phosphate prices.
* On the downside, additional capacity scheduled to be commissioned in 2017
in Morocco and Saudi Arabia may have a limiting factor for any significant
price increases, although there may be no net increase in supply due to
lower utilisation rates in China
Company
* 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.
For further information please contact:
PJSC PhosAgro
Alexander Seleznev, Head of Investor Relations Department
+7 495 232 9689 ext 2187
ir@phosagro.ru
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
Tom Blackwell
Blackwell@em-comms.com
+7 919 102 9064
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%).
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. It is Russia's only producer of
nepheline concentrate.
PhosAgro's main products include phosphate rock, 33 grades of fertilizers, feed
phosphates, ammonia, and sodium tripolyphosphate, which are used by customers
in 100 countries spanning all of the world's inhabited continents. The
Company's priority markets outside of Russia and the CIS are Latin America,
Europe and Asia.
PhosAgro's shares are traded on the Moscow Exchange, and global depositary
receipts ("GDRs") for shares trade on the London Stock Exchange (under the
ticker PHOR). Since 1 June 2016, the Company's GDRs have been included in the
MSCI Russia and MSCI Emerging Markets indexes.
PJSC "PhosAgro" - Consolidated Statement of Profit or Loss and Other
Comprehensive Income for 2016
2016 2015
RUB Million RUB Million
Revenues 187,742 189,732
Cost of sales (86,391) (83,064)
Gross profit 101,351 106,668
Administrative expenses (13,891) (12,184)
Selling expenses (21,129) (17,751)
Taxes, other than income tax (2,261) (1,994)
Other expenses, net (2,472) (1,408)
Operating profit 61,598 73,331
Finance income 909 1,222
Finance costs (4,682) (6,093)
Foreign exchange gain/(loss), net 16,962 (22,178)
Share of profit/(loss) of associates 140 (59)
Profit before tax 74,927 46,223
Income tax expense (15,041) (9,787)
Profit for the year 59,886 36,436
Attributable to:
Non-controlling interests ^ 2 (6)
Shareholders of the Parent 59,884 36,442
Other comprehensive income
Actuarial gains and losses, net of tax (68) (4)
Foreign currency translation difference (3,105) 3,405
Other comprehensive (loss)/income for the (3,173) 3,401
year
Total comprehensive income for the year 56,713 39,837
Attributable to:
Non-controlling interests ^ 2 (6)
Shareholders of the Parent 56,711 39,843
Basic and diluted earnings per share (in 462 281
RUB)
PJSC "PhosAgro" - Consolidated Statement of Financial Position as at 31
December 2016
31 December 2016 31 December 2015
RUB million RUB million
Assets
Property, plant and equipment 154,713 120,952
Advances issued for property, plant and 4,684 7,424
equipment
Intangible assets 1,165 566
Investments in associates 816 810
Deferred tax assets 5,110 5,901
Other non-current assets 2,226 2,822
Non-current assets 168,714 138,475
Other current investments 3,282 4,902
Inventories 19,934 17,814
Current income tax receivable 339 453
Trade and other receivables 29,674 25,511
Cash and cash equivalents 7,261 29,347
Current assets 60,490 78,027
Total assets 229,204 216,502
Equity
Share capital 372 372
Share premium 7,494 7,494
Retained earnings 74,932 43,460
Other reserves 5,486 8,659
Equity attributable to shareholders of the 88,284 59,985
Parent
Equity attributable to non-controlling 137 213
interests
Total equity 88,421 60,198
Liabilities
Loans and borrowings 98,239 105,565
Defined benefit obligations 767 424
Deferred tax liabilities 4,600 3,677
Non-current liabilities 103,606 109,666
Trade and other payables 22,803 17,011
Current income tax payable 237 491
Loans and borrowings 14,137 28,947
Derivative financial liabilities - 189
Current liabilities 37,177 46,638
Total equity and liabilities 229,204 216,502
PJSC "PhosAgro" - Consolidated Statement of Cash Flows for 2016
2016 2015
RUB million RUB million
Cash flows from operating activities
Profit before tax 74,927 46,223
Adjustments for:
Depreciation and amortisation 10,767 9,133
Loss on disposal of property, plant and equipment and 614 915
intangible assets
Finance income (909) (1,222)
Finance costs 4,682 6,093
Share of (profit)/loss of associates (140) 59
Foreign exchange (gain)/loss, net (18,040) 23,663
Operating profit before changes in working capital and 71,901 84,864
provisions
Increase in inventories (2,120) (5,287)
Increase in trade and other receivables (4,023) (6,116)
Increase in trade and other payables 3,019 2,741
Cash flows from operations before income taxes and 68,777 76,202
interest paid
Income tax paid (13,451) (7,488)
Finance costs paid (4,965) (5,453)
Cash flows from operating activities 50,361 63,261
Cash flows from investing activities
Loans repaid/(issued), net 253 (151)
Acquisition of property, plant and equipment and (40,246) (42,668)
intangible assets
Proceeds from disposal of property, plant and equipment 270 170
Proceeds from disposal of investments 1,277 -
Finance income received 432 1,008
Cash of Phosint Group at the date of acquisition - 10,178
Cash flows used in investing activities (38,014) (31,463)
Cash flows from financing activities
Proceeds from borrowings 34,149 46,376
Repayment of borrowings (33,727) (62,041)
Dividends paid to shareholders of the Parent (27,974) (18,130)
Dividends paid to non-controlling interests (9) -
Payment of finance lease liabilities (1,951) (1,905)
Proceeds from/(payments for) settlement of derivatives, 127 (1,590)
net
Acquisition of non-controlling interests (218) -
Other payments (243) (154)
Proceeds from contribution to charter capital of - 71
subsidiaries by non-controlling interests
Cash flows used in financing activities (29,846) (37,373)
Net decrease in cash and cash equivalents (17,499) (5,575)
Cash and cash equivalents at 1 January 29,347 30,687
Effect of exchange rates fluctuations (4,587) 4,235
Cash and cash equivalents at 31 December 7,261 29,347
PHOSAGRO : Annual Financial Report
March 27, 2017 at 02:31 am EDT
Share
Share
© PRNewswire - 2017
