EuroChem Group, a leading global fertilizer company, reported consolidated 1H 2021 sales of US$4.4 billion and sales volumes of 13.4 million metric tonnes (MMT), generating company-record EBITDA for the six-month period of US$1.6 billion, in line with the Group’s ambitious growth plans.

The all-time-high earnings before interest, tax, depreciation and amortization of US$1.6 billion were attributable to increased output from the Group’s production facilities, chiefly potash, iron ore and urea, enabled by EuroChem’s expansive investment program amounting to more than US$6 billion over the past five years.

“While higher prices and favorable exchange rates boosted earnings further, at their core these results reflect new performance levels across all assets prompted by the implementation of best-available technologies as standard, modernization programs at non-new facilities, the introduction of new product lines and an operational efficiency drive to methodically identify and eliminate sub-optimal practices through the value chain,” said EuroChem Group CEO Vladimir Rashevskiy.

Spearheading the company’s growth are two recently introduced world-leading facilities: EuroChem Northwest, the Group’s 1 MMT/a state-of-the-art ammonia plant which has brought self-sufficiency in this crucial fertilizer ingredient; and the EuroChem Usolskiy Potash Complex, which launched in 2018 and is now producing at 2.3 MMT/a with the potential for further capacity increases.

Increases in sales of EuroChem and third-party products have been underpinned by investments in distribution arms across key regions such as Brazil and the United States, providing additional sales channels for products manufactured, blended and packaged mainly in Russia, but also in Belgium, Brazil, Lithuania, the United States, and other countries.

The results come on the back of record high full-year 2020 figures, providing further evidence of EuroChem’s resilience in the face of the global pandemic. They also coincide with a landmark date: August 27 marks 20 years since EuroChem was founded.

“Becoming a top-five global fertilizer company in two short decades is a story of precipitous growth, and one that is without precedent in the industry,” noted Vladimir Rashevskiy. “It makes us truly proud and will undoubtedly propel us to new heights.”

The Group’s cash flow from operating activities, meanwhile, doubled to US$1.4 billion on year-ago figures. At the same time, capital expenditure rose by 49% to US$569 million, as strong market fundamentals enabled EuroChem to develop out the Kingisepp industrial cluster in northwest Russia, with construction beginning on EuroChem Northwest 2, a new 1.0 MMT ammonia and 1.4 MMT urea facility on an adjacent plot. Positive trends across key commodities provide a favorable climate for continued investment in growth projects, given the doubling of free cash flow, year-on-year, to US$783 million.