PhosAgro reduces debt by only $100 mln in 2016 due to poor market situation
SOCHI. Sept 30 (Interfax) - PhosAgro is adjusting plans to reduce the debt burden in 2016 due to the poor market situation, PhosAgro CEO Andrei Guryev told journalists on the sidelines of the Sochi 2016 forum.
"Due to the deterioration of the price situation, we were forced to adjust the forecast for the reduction of the debt burden. Without account of JBIC and EGAP investment credits, which we raised on extremely good terms for the construction of ammonia and urea plants, the reduction of debt will amount to no more than $100 million," she said.
Earlier PhosAgro's management said that debt was planned to fall this year by $150 million-$200 million
Guryev said that in 2017 the company's capex would be significantly lower than this year's level, which was 43 billion rubles. "We are now focusing on the 2017 budget. It is still early to talk about it, but I think there will be quite a large reduction in capital expenditure, which will not affect those investment projects which we are now building, such as ammonia, carbamide and so forth," Guryev said.
"Considering the current market situation, we will carry out quite a conservative policy in terms of investments, in terms of expenses," he said, emphasizing that he does not see a big positive regarding rising prices of fertilizers lately.
In August the company's CFO Alexander Sharabaiko said that PhosAgro's capex in 2017 could be 20%-30% lower than the current year.