Grupa Azoty PUŁAWY – financial results in 2013-2014

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At the official press conference on March 16th, the financial results of Grupa Azoty in 2014 were presented, including the results of Grupa Azoty PUŁAWY. The data concerning Our Works encompasses a long period of time, as the financial year used to be booked differently by Our Company. This has been modified so as to be in line with Grupa Azoty procedures and have the financial year equal the calendar year. As a result, Our Company has presented the results from July 1st, 2013 to December 31st, 2014.

Reasons for satisfaction

The results of Grupa Azoty PUŁAWY as well as Grupa Azoty as a whole proved better than had previously been expected by market analysts.

The consolidated net income from continued activity of Grupa Azoty PUŁAWY was 50.89 million PLN in Q4 2014 (as compared to 19.36 million PLN of profit in the previous year). EBITDA margin, the measure of the efficiency of operational activity of the enterprise, improved by almost 3%, climbing to 9.1% in Q4 2014 (as compared to 6.2% in Q4 2013).

Operating profit was 53.98 million PLN, while in 2013 it had reached 20.78 million PLN. Revenue from sales was higher as well, amounting to 954.97 million PLN in Q4 2014 (as compared to 922.79 million PLN in 2013). AGRO Segment, which comprises the production and distribution of fertilizers had the largest contribution (62,4%) to company revenue, followed by CHEMICAL Segment, which is connected with the manufacturing of melamine, caprolactam, urea and other products (35%).

Still in the lead on the fertilizer production market

Grupa Azoty PUŁAWY remains the leader on the European fertilizer market. The Company’s annual output capacity is 1,351,000 tonnes of nitrogen. With melamine output capacity of 96,400 tonnes per year, we created considerable competitive advantage in the group of its major manufacturers in the world.

Our Works, which produce 70,000 tonnes of caprolactam per year, are one of the leaders of the production of the substance on the global market.

Since July 2013, Grupa Azoty PUŁAWY has spent an impressive amount of 335 million PLN (not counting the R&D expenditure) on investment. As many as 120 projects were in progress at the same time! The most important ones include finalizing the construction of major installations: one for the production of liquid fertilizers based on urea and ammonium sulphate (total expenditure of 69.5 million PLN) and ammonia stockage which makes it possible to improve the capacity of ammonia storage (worth 108.5 million PLN). We also launched an installation for the production of solid fertilizers based on urea and ammonium sulphate (98 million out of 137.5 million PLN of the total budget was spent in 2014), while the network of 25m3 and 50m3 containers for RSM sale was extended.

Another investment is worth mentioning due to its importance for protecting the natural environment – it is the exhaust gases desulphurization installation in the Company combined cycle plant. The gas desulphurization technology which has been adopted brings the additional benefit of producing a new commercial product, namely ammonium sulphate (about 40,000 tonnes annually).