Grupa Azoty PUŁAWY – the financial result in Q3 2014

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The financial results of Grupa Azoty, including Grupa Azoty PUŁAWY, were announced at a press conference on November 13th, 2014.

Quarterly results are decent

The results of Our Company proved better that the market analysts had forecast. In Q3 2014 Grupa Azoty PUŁAWY’s earnings before interest and taxes (EBIT) was 1 million PLN (19 million PLN year-to-year), and the Company made a net profit of 3 million PLN (18 million PLN year-to-year). Importantly, the revenue from sales rose from 840 million PLN in Q3 2013 to 850 million PLN in Q3 2014. This might be considered as a good sign for the future. We need to keep in mind that the revenue of Grupa Azoty PUŁAWY constitutes circa 30% of the revenue of the whole Grupa Azoty, which confirms that Our Company plays an important role in the consolidated financial group.

Q3 2014 was the fifth quarter of financial year beginning on July 1st, 2013 in the ledger of Grupa Azoty Zakłady Azotowe “Puławy” S.A. As an exception, the total financial statement for the financial year will be published after six quarters, and it will concern the 18 months’ period ending on December 31st, 2014. This will enable us to start the next financial year at the same time as the whole Grupa Azoty does.

The most important events in the recent months

A number of important events in the functioning of the Enterprise took place last quarter. Grupa Azoty PUŁAWY won an award in Modernization of the Year 2013 competition. Ammonia stockage installation with 15,000 tonnes capacity was launched in October 2014. Also, Agrochem Puławy purchased 6793 shares of Unibaltic Agro Sp. z o.o.

Moreover, an agreement was signed with the representatives of the Malaysian chemical – fertilizer industry concerning the manufacturing of urea and other ammonia-based products. The agreement was signed with the following companies: PETRONAS Chemical Group Berhad and Sipitang Oil & Gas Development Corporation Sdn Bhd.

Perspectives for the future

Forecast for the next months is worth considering. Should the situation on the fertilizers’ market remain similar to the current trends, there is no reason for Grupa Azoty PUŁAWY to have trouble generating profit in the approaching quarters. The prices of natural gas and other energy resources will continue to play an important role in the manufacturing process. However, thanks to the policy of diversification of supply sources, we are endeavoring to take action to reduce the cost of purchasing natural gas, and at the same time the cost of manufacturing our products.