Grupa Azoty Group’s financial results for the second quarter of 2023 are in line with the estimates presented on September 18th 2023. In the three months ended June 30th 2023, the Grupa Azoty Group generated consolidated revenue of PLN 3,491m, EBITDA of PLN -608m, and an EBITDA margin of -17.4%. As highlighted in the press release regarding estimated results, the reporting period witnessed the convergence of adverse market factors impacting all producers in the European fertilizer and chemical industry. Those adverse developments arose as a consequence of Russia’s aggression against Ukraine and the European Union’s decision to suspend tariffs on imports of urea and ammonia from countries outside the EU.
In the three months ended June 30th 2023, the Grupa Azoty Group generated consolidated revenue of PLN 3,491m, EBITDA of PLN -608m, and an EBITDA margin of -17.4%. During the period, the Grupa Azoty Group and other European producers faced macroeconomic headwinds due to Russia’s aggression against Ukraine, leading to reduced demand in the markets for the Group companies’ products and their downstream markets. Based on the production volume estimates published by the Grupa Azoty Group since the beginning of this year, we have observed an upward trend in fertilizer demand since the third quarter. If the trend continues, it is expected to have a positive impact on the Group’s financial results in 2023.
The ORLEN Group is analysing a possible acquisition of Zakłady Azotowe Puławy owned by Grupa Azoty S.A. The companies have signed a cooperation agreement and a non-disclosure agreement enabling due diligence to start at the Puławy-based company. The merger would increase the ORLEN Group’s participation in the fertilizer sector and enhance its efficiency and competitiveness on the European market through numerous synergies. For farmers and other customers of the two companies, the merger would mean a better and broader range of fertilizer products and easier access to products in demand at a given time, achieved through enhanced production flexibility.
In view of price change on the European gas market in the last weeks of May and the demand forecasts, Grupa Azoty Group companies are raising their production levels.
The Grupa Azoty Group recorded negative fourth-quarter 2022 EBITDA, with the earnings dragged down chiefly by the Agro Segment. The Group posted full-year 2022 consolidated revenue of PLN 24,658m, EBITDA of PLN 2,545m and EBITDA margin of 10.3%.
In the fourth quarter of 2022, the Grupa Azoty Group generated estimated consolidated revenue of PLN 5,107m and negative EBITDA of PLN -296m, with a negative EBITDA margin of -5.8%. For the full year, the Grupa Azoty Group generated estimated consolidated revenue of PLN 24,658m and EBITDA of PLN 2,545m, with an EBITDA margin of 10.3%.