Company enters agreement to export urea in February at average price of $317/tonne
Latest in Tag: Abu Qir Fertilizers Highlight
Latest in Tag: Abu Qir Fertilizers
Abu Qir Fertilizers launched a project to reduce carbon dioxide emissions and raise the production capacity of the Abu Qir 3 plant. The company said in a statement to the Egyptian Exchange on Sunday that the procedures include awarding a license to Stamicarbon to carry out technical studies for the development of the liquid urea …
If implemented, it would spell very good news for local fertiliser producers, which currently sell around 40%-50% of their urea and nitrate fertiliser output to the government at a discount of about 30% to the market price.
The company’s top-line is estimated to come in at EGP 2.069bn, reflecting unchanged results quarter-on-quarter (q-o-q), but a rise of 4% year-on-year (y-o-y). Gross margins are set to register 43.6%, reflecting a rise of 10.9% q-o-q and 6.1% y-o-y.
The second phase, which will cost an estimated $1bn, will add new production lines of acetic acid, MTO, and calcium ammonium nitrate.
The project is expected to see investments of $80mn-$90mn, with Ahli Capital appointed as the financial advisor. Its timeline is estimated at 24 months, starting from the end of the current year.
Going forward for Q1 of FY 2021, Naeem Research holds a neutral outlook on AFC’s earnings, as sales volumes are expected to remain strong. This comes despite fertiliser prices likely to remain weak, including with urea trading at $230/tonne.
The decline in revenues was attributed to several factors, including a downward trend in urea prices. Egypt’s urea spot index averaged $248/tonne in 3Q 2019/20, a decline of 6% y-o-y, but a rise of 2.2% q-o-q.
Pandemic negatively affects market demand, domestic prices levels, leading to decrease in sales revenues
Company plans to increase exports to 70% from 55% by year-end
The company’s profits reached EGP 3.15bn during the period from July 2018 to June 2019, compared to EGP 2.4bn in FY 2017/18.
ThyssenKrupp Industrial Solutions in Egypt allocated €133m worth of investments to expand and develop the machinery of Abu Qir Fertilizers. The project will start by the beginning of the next year, and the contracts will be concluded soon, according to Thore Lohmann, country CEO of ThyssenKrupp Industrial Solutions in Egypt. He said that the company …