EuroChem publishes Covid-19 Business Update
Zug, Switzerland, May 4, 2020 – EuroChem Group AG (hereafter “EuroChem”, “the Group” or “the Company”), a leading global fertilizer company, today announces sales of $1.57 billion for the first quarter of 2020, a 3% increase year-on-year that reflects sustained efforts to ensure business continuity in the face of the challenges presented by Covid-19 (coronavirus).
EuroChem monitors the coronavirus situation closely. The Group’s primary focus has been to safeguard its employees, customers and the communities it serves, and to maintain business activities. To this end, it has implemented a number of preventative risk management measures across all functions (production, logistics, supply chain, markets, staff, IT, and finance) to reduce the probability of adverse effects on staff and the business. The Company follows official advice in all markets where it operates, and continues to focus on managing operations in a fast-moving environment.
All EuroChem plants continue to operate as normal and customers have experienced no significant disruptions with product deliveries. All relevant sanitation, social distancing and personal hygiene measures are in place and functioning efficiently at all locations. More than 6,000 office staff worldwide are working remotely.
The Group sold 6.4 million tonnes (MMT) of fertilizers, mining and other products during the period, a 10% increase year on year.
“This strong set of results is built upon the determination, hard work and coordination of everyone across the company to ensure our products reach our customers, and farmers can grow the food the world needs,” said Petter Østbø, EuroChem Chief Executive Officer. “In this challenging environment, our priority has been the health, safety and wellbeing of our colleagues and their families, and our business partners, while at the same time maintaining business continuity.”
Sales remained well diversified across the globe with Europe accounting for 32%, Latin America for 22%, Russia for 16%, North America for 14%, Asia for 10%, the CIS (excluding Russia) for 4%, and Africa for 2% of total sales, respectively. Net debt to LTM EBITDA amounted to 2.65x.
The Group continued the development of its two potash projects in Russia, producing 506,000 tonnes of muriate of potash (MOP) at its Usolskiy potash plant in the Perm Region over the period. At its other VolgaKaliy potash project in the Volgograd Region, progress continues apace and drilling has now reached the mine’s sylvinite layer.
EuroChem reports interim results on a half-yearly basis. Results for the first six months of the year will be published as normal in August.
EuroChem today published its 2019 Annual Report. It can be found on the Group’s corporate website www.eurochemgroup.com.
About EuroChem Group AG
EuroChem is a leading global producer of nitrogen, phosphate and potash fertilizers, as well as certain industrial and mining products. The Group is vertically integrated with activities spanning mining to fertilizer production, logistics, and distribution. EuroChem began test production at its Usolskiy potash mine in early 2018, and continues to develop a second greenfield site at VolgaKaliy in Russia. Headquartered in Zug, Switzerland, the Group operates production facilities in Europe, Asia and the CIS, employing more than 27,000 people.
For more information, please visit www.eurochemgroup.com. Any media or analyst enquiries should be directed to the appropriate EuroChem Group contact, as listed below:
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EuroChem Group AG
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EuroChem Group AG
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