Sanctioned Lifosa earned 4 times less net profit last year – 30 million. euros

The sanctioned Kėdainiai phosphorus fertilizer factory will be supervised by the temporary administrator from spring 2022 Lifosa earned 30.3 million last year. EUR net profit – four times less than in 2021 (EUR 120.7 million). Due to restrictions and factory shutdowns, production and sales fell sharply last year, and the company expects to operate at minimum capacity this year.

“The company predicts that in 2023 there will be limited opportunities to stock up on raw materials and sell products, so the production of sulfuric and phosphoric acids will be carried out at minimum capacity,” the company’s annual report submitted to the Register Center reads.

The company believes that this year it will produce about 600 thousand. tons of various fertilizers (including about 370 thousand tons of nitrogen-phosphorus fertilizers) and will receive 390 million EUR revenue, profit expectations are not specified.

Last year, the company’s income decreased by almost half – to 274.5 million. euros (526 million euros in 2021), and profit before interest, taxes and depreciation (EBITDA) – 2.9 times to 56.6 million euros (162 million euros), according to the reports submitted to the Registry Center.

80 million in 2021 Last year, Lifosa, which paid out EUR 100,000 in dividends, did not pay them last year.

According to the company, last year’s decrease in performance indicators was caused by sanctions, which disrupted the supply of raw materials and limited the opportunities to sell fertilizers.

“Sanctions led to substantial restrictions on the company’s activities: the ability to obtain raw materials and sell production in volumes that existed before the sanctions, increased the need for working capital – suppliers of raw materials began to demand advance payments,” according to the company’s annual report.

In addition to these disruptions, Lifosa cites international settlement disruptions due to transaction verification as one of the main threats.

Last year, the company’s sales fell in all main markets, but in Lithuania they grew by 58 percent. up to 66.4 thousand tons.

In 2022, the company produced 322 thousand tons of various fertilizers – 65-79 percent. less than in 2021. The main production – nitrogen-phosphorus fertilizers produced 226.4 thousand. tons, or 70 percent less than in 2021 (749 thousand tons).

Sulfuric and phosphoric acid production fell by 66 percent each. up to 426 thousand tons (1.2 million tons) and 159 thousand tons (474 ​​thousand tons).

On March 9 of last year, when the European Union announced sanctions against Andrey Melnichenko, a Russian oligarch close to the Kremlin, Lifosa’s accounts were frozen, as a result of which the company suspended its operations on April 10 and resumed in August, and production stopped from September to December due to a lack of ammonia.

100 percent The shares of “Lifosa” belong to the company “EuroChem Group” registered in Switzerland, 90% of which the shares are owned by the Cypriot company AIM Capital – it belonged to A. Melnichenko before the war in Ukraine, and currently its beneficiary is the businessman’s wife Aleksandra. They are both included in the list of EU sanctioned persons.

According to Sodros, the company currently has 915 employees, on Tuesday it stopped operations for annual planned repairs, and it is not yet clear when it will resume operations.

#Sanctioned #Lifosa #earned #times #net #profit #year #million #euros
2023-05-25 10:16:00

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.