Results for H1 2021: Recovery of Markets and Effect of Upgrading Paved the Way for TOAZ Success

Public Joint-Stock Company Togliattiazot (PJSC TOAZ ), one of the leading producers of ammonia and urea in Russia and one of the city-forming enterprises of Togliatti, announced the production and financial results of its operation for H1 2021.

Production and Sales

Production of ammonia, the key product of the enterprise, in the reporting period amounted to 1.503 mil tonnes, which is 0.8% lower than for the same period of 2020 (1.515 mil tonnes). Production of urea by PJSC TOAZ in H1 2021 amounted to 0.498 mil tonnes, which is 1% higher than for the same period of 2020 (0.493 mln tonnes). Retention in the production volume was due to the stable uninterrupted operation of plants resulting from the strategic re-equipment programme, which has been implemented since 2012, and investments into which have already exceeded RUB 60 bn.

Ammonia sales volume in H1 2021 amounted to 1.248 mil tonnes, which is 0.3% higher than for the same period of 2020 (1.244 mil tonnes). Urea sales volume in the reporting period amounted to 0.476 mln tonnes, which is 5% lower than for the same period of 2020 (0.503 mln tonnes).

Financial Performance (under Russian Accounting Standards)

Based on the financial and economic performance of PJSC TOAZ for 6M 2021, its revenue amounted to RUB 45.5 bn, which is 70% higher than for H1 2020 (RUB 26.8 bn). The key driver of the revenue growth is a significant rise in the global prices for ammonia and urea following the recovery of the global consumption and demand in light of low supplies of ammonia and urea in the global market.

The net cost in the reporting period grew by RUB 1.5 bn (or by 13%) against the same period a year before, mostly due to the rising prices for the core raw materials and increased repair costs.

According to the Income Statement, the net profit of PJSC TOAZ for H1 2021 amounted to RUB 15.6 bn, which was RUB 14.9 bn higher than in H1 2020 (RUB 0.7 bn). The key driver of the net profit growth was a significant increase of revenue in H1 2021.

Tax Payments

In 2021 reporting period, PJSC TOAZ transferred RUB 5.87 bn of taxes and insurance contributions to the budgets of various levels and extrabudgetary funds, which was 27% higher than for the same period of 2020 (RUB 4.6 bn). 79 per cent (RUB 4.65 bn) of those funds was allocated to the regional and local budgets, which proves once again the role of Togliattiazot as one of the key taxpayers of Samara Region and the city-forming enterprises of Togliatti.

Comment by Sergey Shishov, Acting CEO of JSC Togliattiazot Corporation:
- Market recovery and a growing demand for Togliattiazot products after the coronavirus pandemic played into our hands. However, TOAZ would not have been able to show such outstanding results if we had not made major investments into the upgrading of our production capacities and the improvement of productivity, stability and safety of equipment in all previous years. I would also like to emphasise measures taken last year to retain the operability of the enterprise during the spread of the new infection, and the responsible attitude of TOAZ employees to comply with them. All these factors paved the way for success of Togliattiazot in the first half-year. We hope to be able to retain this pace, to ensure production development, and to contribute to the welfare of Samara Region and the whole Russia.

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