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Unprecedented fertilizer year

The last six months on the Polish fertilizer market was unlike anything producers, distributors and farmers have ever seen before on the Agro supply market. Record volatility and soaring prices of key feedstocks used in fertilizer production, namely natural gas, phosphate rock and potassium chloride, triggered an unprecedented, sharp growth of production costs, which in turn pushed up fertilizer selling prices.

Grupa Azoty posts solid results despite record-high feedstock costs

Consolidated revenue for the third quarter of 2021 was PLN 3,882m, up PLN 1,466m year on year. EBITDA came in at PLN 300m (up PLN 50m year on year). However, comparable EBITDA adjusted for one-off items comprising sectoral compensation payments and the government anti-crisis shield scheme was PLN 130m higher year on year in the third quarter of 2021. EBITDA margin was 7.7%.

Grupa Azoty with strategy for 2021–2030 and ‘Green Azoty’ flagship project

The Grupa Azoty 2021–2030 Strategy is a response to challenges posed by the contemporary world, covering environment, society and its safety. The document envisages a number of specific measures driven by the Group’s climate and energy transition policy. The new strategy provides for the launch of the ‘Green Azoty’ project, intended mainly to decarbonise and reduce emissions from the Group’s production units, implement R&D projects that are consistent with the European Green Deal and deploy new solutions in the area of environmentally friendly, zero carbon renewable energy sources, including solar photovoltaics and wind power. In line with the adopted objectives, the total capacity of new renewable energy sources will reach ~300 MW in 2030. The entry into the wind power and SMR segments contemplated by the Group may deliver additional several hundred MW from zero-carbon energy sources.

Fertilizer market achieving stability

“On the back of decisive measures taken by Grupa Azoty to stabilise the fertilizer market, the price increases have slowed down. Some of the authorised distributors of Grupa Azoty have posted on their websites detailed price lists with revised retail prices,’ said Karol Rabenda, Deputy Minister of State Assets.

Grupa Azoty calls on its authorised distributors to support farmers and help cover domestic fertilizer demand

Given the present situation in the fertilizer market, Grupa Azoty has urged its authorised fertilizer distributors to actively support producer groups, cooperatives and farmer groups to ensure the expected level of fertilizer availability on the domestic market. In its letters sent to distributors, the Company has urged them to immediately analyse fertilizer resale streams so that the needs of Polish farmers are covered first.

Grupa Azoty maintains fertilizer production despite record-high gas prices

In view of the current situation on the fertilizer market, Grupa Azoty would like to note that in the last few months we have been dealing with record-high gas prices, and in recent days – with unprecedented high volatility and growth dynamics. Despite the record gas prices, Grupa Azoty is doing its utmost not to reduce production and to supply Polish farmers with fertilizers necessary for agricultural production.