14/08/2017

Press release: Togliattiazot reports performance data for H1 2017

ToAZ has reported on business performance in the first 6 months of 2017.

Production results.

In the reporting period, Togliattiazot PJSC produced 1,285.9 thousand tons of ammonia, down by 13% as compared to the similar period of 2016 (1,483.6 thousand tons), and 401.4 thousand tons of urea, which by 14% exceeds the results in 1 H 2016 (351.3 thousand tons).

Financial results (in accordance with Russian Accounting Standards).

The revenue for the period amounted to 22,504 million rubles, down by 17% as compared with 27,126 million rubles y-o-y. The decrease in revenues is associated mainly with the decrease in the ammonia sales volume by 20% (by 267 thousand tons) y-o-y. The urea sales volume increased by 4% (by 13 thousand tons) y-o-y.

The decrease in the sales volume influenced the costs of sales (down by 18% to 2.3 billion rubles y-o-y), which, in its turn, affected the Company’s net profit. In 1 H 2017 it amounted to 3,116 million rubles, up 14% from 2,724 million rubles y-o-y. Besides these factors, a positive effect on the financial results was due to a decrease in other expenses by 34% (1.3 billion rubles) achieved  through efficiency increase and cost optimization measures.

Commenting the performance of Togliattiazot PJSC in the first six months of 2017, the CEO of Corporation Togliattiazot CJSC Vyacheslav Suslov noted: “Though the market situation makes its adjustments, we see that consistent work aimed at the production efficiency increase and cost optimization performed by ToAZ in the recent years, gives its results. This work allows us to feel confident about the future, despite the continuing instability on the key markets”.

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