Statement of financial position
PhosAgro’s balance sheet remains strong, with comfortable debt levels at the end of 2012 and a net debt to EBTIDA ratio of 0.77x as of 31 December 2012.
Total debt at 31 December 2012 amounted to RUB 36,469 million, versus RUB 32,153 million at the end of 2011. The increase in total debt was due to new short-term debt facilities obtained during the period, denominated in USD, EUR and RUB. Our debt portfolio is 94% dollar-denominated, which provides a natural hedge against our export revenue, which is also primarily denominated in US Dollars. The average duration of our debt portfolio at 31 December 2012 was two years.
Cash and cash equivalents stood at RUB 9,664 million as at 31 December 2012, compared to RUB 16,946 million as at 31 December 2011.
Our net debt stood at RUB 26,805 million as at the end of 2012, compared to RUB 15,207 million as at end of 2011.
In February 2013 we placed on highly attractive terms our debut USD 500 million
Inventories
Inventories increased by 22% y-o-y to RUB 12,324 million, largely due to an accumulation of raw materials and the stockpiling of products prior to the spring planting season.
Statement of Cash Flows
Statement of Cash Flows RUB million
| 2012 | 2011 | % change | |
|---|---|---|---|
| Cash flows from operating activities | 25,463 | 32,375 | (21%) |
| Cash flows used in investing activities | (12,569) | (6,739) | 87% |
| Cash flows used in financing activities | (20,036) | (13,989) | 43% |
| Net (decrease)/increase in cash and cash equivalents | (7,142) | 11,647 | (161%) |
Cash Flows from Operating Activities
Net cash flow from operating activities decreased by 21% y-o-y to RUB 25,463 million in 2012, compared to RUB 32,375 million in 2011. This decrease was principally due to a RUB 4,556 million negative movement in working capital, and increase of income tax and finance costs paid.
Cash Flows used in Investing Activities
Net cash used in investing activities totalled RUB 12,569 million in 2012, compared to RUB 6,739 million in 2011. The 87% increase was primarily due to higher capital expenditure, as investments in our new urea line and gas turbine power plant peaked ahead of the launch of these new capacities in the second half of the year; a significant portion of capital expenditure was also related to ongoing work on ore shaft № 2 at the Kirovsky underground mine at Apatit.
Cash Flows used in Financing Activities
Net cash used in financing activities amounted to RUB 20,036 million in 2012, compared to net cash used in financing activities of RUB 13,989 million in 2011. This 43% increase was primarily due to the fact that PhosAgro raised less debt in 2012 than in 2011, and to the acquisition of the Russian Federation’s 20% share in Apatit at the privatisation auction.