Net profit of one of Russia’s largest fertilizer producers, "PhosAgro," fell by 37% in the third quarter of 2026, to $156 million, while production costs and debt are rising. This is reported by Ukraine’s Foreign Intelligence Service, reports UNN.
Details
Over the nine months, gross profit fell by 27%, to $1.7 billion, while net profit declined by approximately 67%, to $389 million. The cost of production rose by more than 30% year-on-year. Sulfur and sulfuric acid, which are essential for producing phosphate fertilizers, became more expensive: about $503 million was spent on them in six months
According to available information, the company sells mainly for export, particularly to India, Brazil, and African countries, and therefore depends on global prices, demand, and delivery costs.
Last year, it produced 12.2 million tonnes of products for more than 100 countries, but large volumes do not generate profit if selling prices lag behind costs
At the same time, the company’s debt is also increasing. In particular, according to the intelligence service, debt at the end of the third quarter amounted to about $4.5 billion, 11% more than at the end of 2025.
Last year, capital expenditures amounted to about $836 million, while free cash flow was only $253 million. If profit continues to decline, modernization will have to be financed through loans.
A similar picture can be seen throughout Russian industry: large production and export volumes are increasingly failing to translate into profit
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