28 Feb 2020 09:25

EuroChem plans capex of $3.4 bln to 2024 without new projects

MOSCOW. Feb 28 (Interfax) - EuroChem, one of the world's biggest mineral fertilizer producers, plans to invest up to $2.6 billion in the development of its mining assets over five years and $0.8 billion in fertilizer production and logistics, the Russian company said in a prospectus for an upcoming Eurobond offering.

Most of the capital expenditures will continue to go into potash projects, including up to $1.1 billion for Volgakali in 2020-2024 and up to $0.9 billion for Usolsky GOK. EuroChem also plans to spend $0.6 billion on the Kovdorsky GOK phosphate project.

Capex for the fertilizer production division will break down as follows: $131 million for Nevinnomyssky Azot; $95 million for Novomoskovsky Azot; $111 million for EuroChem Antwerpen in Belgium; $71 million for Lifosa in Lithuania; $89 million for Phosphorit; $54 million for Belorechensk Mineral Fertilizers; and up to $55 million for the ammonia plant in Kingisepp that opened a year ago.

The company plans to invest about $170 million in its commercial division, including $140 million in logistics. In particular, EuroChem plans to finish building and in 2023 launch a terminal in Ust-Luga to handle potash from Usolsky GOK with capacity of 7 million tonnes per year.

In addition to its potash projects, EuroChem has one other major project. Last year it announced the construction of another plant to produce ammonia, urea and methanol in Kingisepp at a cost of about $2.5 billion. The company plans to build the nitrogen part of the project in 3-3.5 years, and launch the methanol part about a year later, EuroChem principal owner Andrei Melnichenko said last June.

EuroChem Group closed 2019 with EBITDA of $1.55 billion on revenue of $6.2 billion.