“PUŁAWY” has made a profit again

| About Us |

In the first quarter of 2013/14 financial year, Grupa Azoty Zakłady Azotowe “PUŁAWY” made a net profit of 17.8 million PLN.

It is worth noting that the operating profit of our company in the reported period was 18.6 million PLN, as compared to 37.2 million PLN in the same period of the previous year. Revenue of Grupa Azoty Zakłady Azotowe “PUŁAWY” decreased from 878 million PLN (in the same period of 2012/2013 financial year) to 839.8 million PLN.

Chemical Segment of Grupa Azoty “PUŁAWY” brought 516.7 million PLN revenue from sales, and EBITDA profit of 6.9 million PLN.

Energy Segment produced revenue of 459.7 million PLN, and EBITDA profit of 40.6 million PLN.

Revenue from sales in Other Activity Segment of Grupa Azoty “PUŁAWY” reached 27.6 million PLN, and EBITDA profit was 8.1 million PLN.

 

SELECTED FINANCIAL RESULTS

In thousand PLN

In thousand PLN

In thousand PLN

 

First quarter 2013, period from 2013-07-01 to 2013-09-30

First quarter 2013, period from 2013-07-01 to 2013-09-30

First quarter 2013, period from 2013-07-01 to 2013-09-30

CHOSEN CONSOLIDATED FINANCIAL DATA

 

 

 

Revenue from sales from continuing operations

839 760

877 633

197 987

Gross profit/(loss) from sales from continuing operations

118 768

142 082

28 001

Gross profit/(loss) from continuing operations

20 050

41 085

4 727

Net profit/(loss) from sales from continuing operations

17 914

34 797

4 224

Net profit/(loss) in the period

17 774

34 675

4 190

Total revenue in the period

17 600

34 082

4 149

Net profit/(loss) per Parent Company shareholders

17 605

34 336

4 151

Net profit/(loss) per non-controlling interests

169

339

40

Total revenue for Parent Company shareholders

17 457

33 743

4 116

Total revenue for non-controlling interests

143

339

34

Number of shares

19 115 000

19 115 000

19 115 000

Net profit/(loss) per one common share (in PLN)

0,92

1,80

0,22

Net cash flow from operating activity

106 115

80 565

25 018

Net cash flow from investment activity

(112 167)

(93 740)

(26 445)

Net cash flow from financial activity

(2 948)

(4 273)

(695)

Net change in cash and cash equivalents

(9 000)

(17 448)

(2 122)

as on 30.09.2013

as on 30.06.2013

as on 30.06.2013

Fixed assets

2 016 420

1 981 696

478 244

Working assets

1 392 792

1 430 773

330 335

Total assets

3 409 212

3 412 469

808 579

Long-term liabilities

230 361

237 364

54 636

Short-term liabilities

490 085

503 939

116 236

Own capital

2 688 766

2 671 166

637 707

CHOSEN UNCONSOLIDATED FINANCIAL DATA

 

 

 

Revenue from sales from continuing operations

780 918

807 625

184 114

Gross profit/(loss) from sales from continuing operations

103 589

119 063

24 423

Gross profit/(loss) from continuing operations

18 720

33 489

4 414

Net profit/(loss) from continuing operations

17 188

29 763

4 052

Total revenue in the period

17 066

29 663

4 024

Number of shares

19 115 000

19 115 000

19 115 000

Net profit/(loss) per one common share (in PLN/EUR)

0,89

1,55

0,21

Net cash flow from operating activity

116 789

31 025

27 535

Net cash flow from investment activity

(110 797)

(76 028)

(26 122)

Net cash flow from financial activity

(623)

(576)

(147)

Net change in cash and cash equivalents

5 369

(45 579)

1 266

as on 30.09.2013

as on 30.09.2013

as on 30.09.2013

Fixed assets

2 016 420

2 016 420

2 016 420

Working assets

1 276 679

1 308 618

302 796

Total assets

3 216 781

3 212 251

762 939

Long-term liabilities

156 018

158 068

37 003

Short-term liabilities

453 778

464 264

107 625

Own capital

2 606 985

2 589 919

618 311

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Investors should go for US farming

| Foreign Markets |

Expected growth of the revenue of American farms, their value and favorable liabilities/assets ratio are among factors indicating profitability of investing in US agriculture.

Increasing value

Net revenue of farmers in 2013 is estimated at over 120 billion USD. Such result is a record high, especially seeing how severe the 2012 drought had been. Investors may grow even more interested witnessing the expected growth of farm assets by 7%, which are to reach a record total of 3 billion USD. Liabilities to assets ratio is forecast to fall and reach 10.2%, or the lowest value in half a century!

 

Sources of the success

American citizens have started to pay more and more attention to using healthy food while cooking. New trends in nutrition have triggered a boom for organic farming, the fastest-growing sector in agriculture, whose successes cannot be underestimated. Global growth of the proportion of middle class in developing societies, ongoing transformation of the eating habits and import of food from developed countries are the factors behind the prosperity of farming in such countries as the USA. This year the country’s total agricultural export is estimated at 142 billion USD, while the foreign trade surplus reached 32 billion USD in 2012.

Let’s invest

 

Investors who are looking for new directions of development need look no further than the USA, whose farming sector is booming. Should the upward trend continue, operating on US market may prove to be the best choice. There are no reasons to fear that American agriculture will become less attractive for investors seeing that US population is large and constantly growing, while consumers abroad are increasingly favorable towards food from this country.

 

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Good results of PUŁAWY

| Prospects & Investment |

On August 30th Grupa Azoty Zakłady Azotowe “PUŁAWY” published the financial results for Q4 and for the whole 2012/13 financial year. The results will bring satisfaction to all stakeholders due to the fact that they have confirmed and exceeded market expectations. The data for the whole year brought two records – the second largest net income in company history and the highest revenue from sales ever.

Quarterly financial results

The net profit of the Group reached 105.2 million PLN and was considerably higher that the market forecast of 92 million PLN. Operating income was 110.5 million PLN, while the revenue of the Group – at 930.2 million PLN – was slightly lower than in the previous quarter.

Excellent results were brought about by good profitability in the segments of fertilizers and energy. The chemical segment fell behind and produced a loss, mainly resulting from poor market for caprolactam.

Annual financial results

The net revenue of the Group was 392 million PLN, which is the second largest result in company history. At 3,684.5 million PLN, “PUŁAWY”‘s revenue has been the highest to date.

The Agro (agricultural) segment contributed the most to the success. This area of company activity produced 63.5% of overall revenue, namely 2,340.6 million PLN. Compared to the previous year, this sum has increased by 2,8 %. The Chemical segment comes second if share in revenue is considered, bringing 33,2% of revenue from sales or 1,223.3 million PLN.

Forecast for the future

It is the fertilizer market which looks the most promising in the foreseeable future. The prices are expected to remain at a similar level to the current one. Despite the low price of cereal on the market, which is a short-lived trend, the Agro segment is unlikely to suffer.

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The Minister of Treasury in Puławy

| Prospects & Investment |

Włodzimierz Karpiński, the Polish Minister of Treasury, visited “PUŁAWY” to attend the ceremony of completing the first stage of New Fertilizer Complex, an essential investment for our Works.

Finalizing investments in Puławy

During his visit in Puławy, the Minister participated in the opening ceremony of the most modern flue-gas desulfurization installation in Europe and the third flue-gas desulfurization installation using wet scrubbing with ammonia in the world; as well as two installations in New Fertilizer Complex – an installation for liquid fertilizers with sulfur PULASKA (190,000 tonnes per year), RSMS, and logistics center for granulated fertilizers. The total budget of the first stage of the investment was 360 million PLN.

The Minister stressed the fact that the finalized investments serve as a proof of good and wise management of “PUŁAWY”. In his opinion, such projects prove that the Company Board focuses on profitability.

Investments as the key to success

The Minister expressed strong approval of such consistent investment policy. In his view, new installations mean first of all new jobs and stability in the future. Mr. Karpiński believes that the investment projects finalized in Puławy confirm the strong position of Polish economy on a European as well as global scale.

During his visit in Puławy, the Minister emphasized the fact that such investment is invaluable in the time of economic downturn and crisis on the global markets.

Mr. Karpiński drew attention to the fact that building a new installation is not an art in itself, but making wise market analysis and launching investments responding to market needs is a true achievement. He believes that all projects in progress in Puławy respond to market demand and make the company more competitive internationally. They also improve the efficiency of production, thus bringing more revenue and higher profits.

The Minister of Treasury added that thanks to investments in “PUŁAWY”, experts in Western Europe have an excellent opinion about fertilizer-chemical sector and Grupa Azoty itself, which is the flagship of the Polish economy.

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