Net profit of Agropolychim for 2018 is over 33 mio BGL with an operational cash flow of nearly 60 mio BGL. The results are less than 2017 but Agropolychim had a 2,5 months full shut down in order to allow for the installation of two brand new nitric acid reactors. Also, the fertilizer market has been very difficult in 2018 due to abnormal weather and increased competition and the market will remain challenging for the next two years at least.
“We have implemented successfully an important number of key investments during the last 10 years, totaling more than 300 mio BGL and we are picking the fruits now”, says Philippe Rombaut, CEO of Agropolychim. The factory is very flexible and is producing at maximum capacities all the time, whatever the gas price thanks to the import possibility of ammonia.
The ammonia import terminal will be more than doubled to about 23.000 tons by the end of 2020 and Agropolychim will be distributing ammonia in Romania and Serbia. The production capacities of nitrogen fertilizers will be increased by more than 50 % to reach 750.000 tpy.
“We are confident in the future of our business model and we have decided to further step up the investment pace during the next three years. Hopefully the Bulgarian administration will be timely supporting us in the execution of our plans. We are aiming at producing more than 1 mio tons of fertilizers, besides another 400.000 tons that we are currently importing and distributing in the Balkans thru our optimized logistics. The current three-year goal is to sell over 1,5 mio tons of fertilizers by 2022. Most likely, this figure will be increased. There are fundamental changes happening in the fertilizer market in the Balkans and in Ukraine and we are the best positioned to strengthen our position as leading producer in the region. We will not miss that opportunity.”
Other investments are in the sphere of improved logistics and energy efficiency. More than half of the electricity needed by the factory will be produced internally thru cogeneration.
Grain Terminal Varna West AD is among our leading investment projects, building a 100.000 tons capacity grain terminal on the site of Agropolychim. This will allow the farmers and grain traders to bring the grain and leave with fertilizers, hereby potentially reducing transport cost by nearly 50 % and further reducing overall CO2 emissions. The terminal will be operational by the end of 2019 and will employ 40 people. It is estimated that over 1,5 mio tons of grains will be going thru the terminal avoiding congestion in Varna and substantially increasing ship loading speed.
Agropolychim is debt free and has two credit lines in stand by for a total of 60 mio BGL and will finance the investment projects without need for further credit lines.