Russia-based fertilizer producer Eurochem increased total fertilizer sales by 5.6pc in the first half of this year, and nearly doubled net earnings as fertilizer prices soared.
Eurochem sold 9.75mn t of fertilizers in January-June, up from 9.24mn t a year earlier. Sales of nitrogen-based fertilizers increased to 5.06mn t, up from 4.9mn t. Revenue from nitrogen-based fertilizers hit $1.54bn, up by 43pc on a year earlier.
Sales of phosphate fertilizers were up slightly on a year earlier to 1.47mn t, from 1.45mn t. Revenue nearly rose by half to $730mn.
And, sales of "complex fertilizers", including NPKs and soluble specialty products, increased by 2.6pc to 1.74mn t. Complex fertilizer revenue rose by 18pc to $679mn.
Potash sales rose by a quarter to 1.25mn t.
Total fertilizer revenue surged by 37pc to $3.45bn. Eurochem's earnings before interest, taxes, depreciation and amortisation nearly doubled to $1.64bn.
The jump in earnings reflect the overall rise in prices across the fertilizer complex this year. The Argus Nitrogen, DAP and standard MOP indexes were up by 76pc, 50pc and 77pc, respectively, from the start of the year to 1 July (see chart).
Major fertilizer suppliers have reported a boom in earnings across the board, with fellow Russian supplier Phosagro and Norway's Yara planning additional dividends, Israel's ICL posting record results for its phosphates division and Saudi Arabia's Ma'aden also reporting solid earnings for the second quarter among others.
Outlook firm for 2H
Eurochem's outlook on fertilizer prices for the second half of the year is firm. Solid demand, from India and Brazil in particular, and low inventories are expected to support the nitrogen market. Tight export availability from China and high natural gas costs through to next year will support the market on the supply side.
The outlook on the phosphates market is similarly firm. Eurochem expects strong crop prices and farmer affordability to support buying. India is likely to be a key market driver in the second half of the year.
