EuroChem boosts EBITDA 9% to $254 mln in Q3
MOSCOW. Nov 8 (Interfax) - EuroChem Group AG, the parent company of EuroChem Group, boosted earnings before interest, taxes, depreciation and amortization (EBITDA) to International Financial Reporting Standards (IFRS) 9% to $254 million in Q3 2017 on higher prices for fertilizer and iron ore, the company said.
Revenue grew 11% to $1.17 billion during the period.
Revenue in 9M grew 7% to $3.57 billion amid rising prices and an improvement in the sales structure. EBITDA during the period totaled $845 million, the same level as 2016. Cost of sales was up 7% year-on-year to $1.56 billion due to ruble appreciation.
Fertilizer sales were down 4% year-on-year in Q3 to 3.3 million tonnes. Production shifted toward complex, AN, MAP and other products offering higher netbacks.
Sales volumes for mining products declined 10% year-on-year to 1.55 million tonnes as bottlenecks on eastbound rail freight slowed iron ore deliveries to China.
Sales to Europe, Russia and the CIS, accounted for a combined 60% of Q3 sales, compared to 63% in Q3 2016. The share of the Latin American market increased from 13% to 16% following the acquisition of Fertilizantes Tocantins and Emerger Fertilizantes.
Net covenant debt totaled $3.27 billion at the end of September 30. Net debt/EBITDA totaled 2.9x, up from 2.87x at the end of H1.
The group generated $284 million in cash from operations in Q3 and $824 million in 9M, in line with the same period of 2016.
Capex in Q3 amounted to $443 million and $1.044 billion in 9M, 9% higher than last year.