Pétfürdő, August 28, 2021 - Today, Nitrogénművek Zrt. published its semi-annual consolidated financial statements for the first half of 2021.

In the first six months, the Company's EBITDA reached HUF 8.57 billion, down 44.6% from the same period last year. This was mainly due to two factors: 1.) The large increase in raw material prices, (In the first half of the year, material expenses increased by 19.2%, HUF 5.7 billion.) 2.) The scheduled shutdown for repairs and maintenance of the ammonia plant for June. Production in the first half of 2021 (520 thousand tons) was 100 thousand tons lower than in the same period of the previous year. This figure corresponds to the amount of production missed in June 2021 due to planned maintenance work. Excluding material expenses, our operating expenses decreased by 8.04% compared to the same period last year. The company's cash position at the end of the first half of the year was HUF 26.5 billion, which did not change materially compared to the same period of the previous year.

Profit after tax amounted to HUF 1.857 billion, while this value was HUF 3.883 billion in the first half of 2020.

Zoltán Bige - Strategic Director - assessed the results as follows: “Due to the strong seasonality of our industry, the sudden increase in energy prices was not proportionally followed by fertilizer market prices in the first half of the year.  However, the market outlook is very positive for the second half of the year. High crop prices, strong market demand, limited supply and the stabilization of energy prices at current levels will result in further increases in nitrogen prices, thus ensuring that Nitrogenművek shall achieve the expected and planned profitability figures for 2021. In the recent period, we have performed well in areas which were under the control of the company and, as a result, we moved towards achieving our financial targets. Nitrogénművek will be ready to exploit the potential of the transition to sustainable operation. Resources and environmental challenges require significant development in both agriculture and the fertilizer industry. As a result of our direct agricultural-commercial activity, we have an important role to play in achieving the goals in both areas as set by the European Union.”

About Nitrogénművek Zrt.

Nitrogénművek Zrt. one of the leading nitrogen based fertilizer producers and agricultural input-material distributor companies in Central European region, headquartered in Pétfürdő, Hungary. It represents the fertilizer production industry in Hungary which is an important EU industry in terms of turnover, employment and most importantly, its value to the agri-food sector. It is active in over 15 countries with an international workforce of over 700 people and a track record of 90 years in the industry.

 

Key indicators	1h 2021	1h 2020	Change
Sales, HUFm	51.904	53,877	-3,66%
EBITDA, HUFm	8.574	15,475	-44,59%
EBITDA margin, HUFm	16,52%	28,7%	-42,44%
Production, thousand mt	520	621	-16,26%
Profit before income tax, HUFm	2,218	4,034	-45,02%
Net Debt/EBITDA	3,87	2,8