The current situation on the fertilizer market was among the topics discussed by representatives of Grupa Azoty with Marian Sikora, President of the Federation of Agricultural Producer Associations, and Stanisław Kacperczyk, President of the Polish Association of Grain Producers. At the meeting, Zbigniew Paprocki, Member of the Management Board and CEO of Grupa Azoty S.A., said that the adverse conditions prevailing on the fertilizer market stem from the gas crisis in Europe, that is record-high gas costs, which have risen by several hundred per cent year on year and directly translate into the current fertilizer production cost levels.

Another edition of Grupa Azoty’s customer lottery, in which the grand prize is a John Deere 5075E tractor, has just been launched. The aim is, among other things, to give farmers an opportunity to win one of the over three hundred prizes as a token of appreciation for choosing Grupa Azoty fertilizer products.

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.

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%.

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.

“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.