PhosAgro to cut capex almost 30% in 2017, to invest 82.3 bln rubles up to 2020
LONDON. March 28 (Interfax) - PhosAgro is planning to allocate 82.3 billion rubles for capex in 2017-2020, according to a company presentation for Investor Day.
The company will cut capex almost 30% to 29.5 billion rubles in 2017.
PhosAgro is completing a large investment program this year with the launch of ammonia and urea production in Cherepovets. As a result, capex will continue to fall: in total in 2018-2020 PhosAgro is planning to invest 52.8 billion rubles for the development and maintenance of capacity, which is around 17.6 billion rubles per year.
The investment program up to 2020 proposes 20% growth in capacity, from 7.4 million tonnes in 2016 to 8.7 million tonnes by 2020.
According to the presentation, 38.8 billion rubles of total capex will be invested in Apatit and 27.4 billion rubles will be allocated for the expansion of phosphate mining capacity.
PhosAgro is investing 43.5 billion rubles in the development of processing capacity. Of this, 8.9 billion rubles is required for the completion of ammonia and urea projects in Cherepovets, another 15.2 billion rubles is planned to be invested in the production of phosphates and sulphuric acid in Cherepovets and Balakovo. The company will allocate 12.7 billion rubles to the maintenance of processing capacity.
By 2020, NPK/NPS fertilizer will account for 37% of production, MAP for 21%, DAP for 15%, urea for 18%, MCP for 4% and ammonium nitrate for 5%.
