The last six months on the Polish fertilizer market was unlike anything producers, distributors and farmers have ever seen before on the Agro supply market. Record volatility and soaring prices of key feedstocks used in fertilizer production, namely natural gas, phosphate rock and potassium chloride, triggered an unprecedented, sharp growth of production costs, which in turn pushed up fertilizer selling prices.

On November 17th, a sponsorship deal was signed between Grupa Azoty S.A. and the City of Puławy under which the former became the title sponsor of a sports and entertainment hall in Puławy. The new facility will be name d ‘Grupa Azoty Arena’.

Consolidated revenue for the third quarter of 2021 was PLN 3,882m, up PLN 1,466m year on year. EBITDA came in at PLN 300m (up PLN 50m year on year). However, comparable EBITDA adjusted for one-off items comprising sectoral compensation payments and the government anti-crisis shield scheme was PLN 130m higher year on year in the third quarter of 2021. EBITDA margin was 7.7%.

A press conference devoted to the situation on the fertilizer market was held Thursday at the Ministry of State Assets. The event was attended by the Deputy Minister of State Assets Karol Rabenda and the President of the Management Board of Grupa Azoty S.A. Thomas Hinc.

The Grupa Azoty 2021–2030 Strategy is a response to challenges posed by the contemporary world, covering environment, society and its safety. The document envisages a number of specific measures driven by the Group’s climate and energy transition policy. The new strategy provides for the launch of the ‘Green Azoty’ project, intended mainly to decarbonise and reduce emissions from the Group’s production units, implement R&D projects that are consistent with the European Green Deal and deploy new solutions in the area of environmentally friendly, zero carbon renewable energy sources, including solar photovoltaics and wind power. In line with the adopted objectives, the total capacity of new renewable energy sources will reach ~300 MW in 2030. The entry into the wind power and SMR segments contemplated by the Group may deliver additional several hundred MW from zero-carbon energy sources.

Given the present situation in the fertilizer market, Grupa Azoty has urged its authorised fertilizer distributors to actively support producer groups, cooperatives and farmer groups to ensure the expected level of fertilizer availability on the domestic market. In its letters sent to distributors, the Company has urged them to immediately analyse fertilizer resale streams so that the needs of Polish farmers are covered first.