Improving the EBIT and EBITDA result of the Azoty Group was recorded in all segments, except for the plastic segment, which was significantly burdened with the results of Grupa Azoty Polyolefins. Positive profitability at the EBITDA level was obtained in the Agro segment. After excluding the negative impact of the Azoty Polyolefins EBITDA Group at the Azoty Group level, it also accepts a positive value and amounts to PLN 73 million.
It was also indicated that the raw material situation of the group in the second quarter remained under the influence of the increase in natural gas prices, whose ratings were by 12 percent. higher compared to the same period of the previous year. The unit costs of electricity and coal consumption were reduced.
“The import of products from Russia and Belarus had a significant negative impact on the results obtained, while in the future the impact of this factor should be limited thanks to the protective mechanisms introduced in the EU” – it was written in the communiqué.
In the AGRO segment in the second quarter, compared to the same period of the last year, the main determinants of the results were the increase in volumes and product sales prices as well as an increase in natural gas prices. Invariably, the greatest impact on the situation and results of the Grupa Azoty fertilizer segment and other European producers had the imported import of fertilizers from the Eastern directions.
In the second quarter of 2025, the Azoty Group recorded the increase in sales volume, a total of 11 percent. yard, and in the case of nitrogen fertilizers by 14 percent rdr.
“It is expected that the increase in duties on nitrogen and multi -component fertilizers imported from Russia and Belarus from July 1, 2025 and gradually increasing them in subsequent periods, will have a positive impact on the future financial results of the Azoty Group, although the effect may be removed in time” – indicated.
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The EBITDA margin of the Agro segment developed in the second quarter of 2025 was formed at 1.2 percent. and was higher by 6.6 pp. relative to the same period of the previous year.
Chemical business under the influence of poor economic situation and customs war
In the Chemistry segment, in the second quarter of 2025, a decline in volumes of sale of key products was observed, which at the revenue level was partly compensated for the increase in prices of selected products. The company said that the results of this segment remained under the influence of poor economic situation in the world and limited demand for chemicals. An additional factor limiting the increase in demand remains a trade war related to the introduction of duties and their influence on global supply chains.
Due to the persistent difficult demand and subage situation in the second quarter of 2025, Grupa Azoty Zakłady Azotowe “Puławy” did not produce melaamines.
The chemistry segment EBITDA developed in the second quarter of 2025 was formed at the level of minus 3.7 percent. And it was better by 5.7 pp. relative to the same period of the previous year.
Rotation decreases in the plastics segment
In the second quarter in the business of plastics, a decrease in sales volumes was recorded, especially important in the case of polypropylene, as well as a decrease in product prices (polyamide, polypropylene). In relation to raw materials, prices recorded both a decrease (phenol) and growth (propane).
“On the European market, the base demand in most industries consumering polyamide and polypropylene remained at a stable but low level. The poor moods in the automotive industry were deepened after the USA introduced customs tariffs. imported ” – indicated in the announcement.
Due to the market situation in the second quarter of 2025, Grupa Azoty Puławy did not resume the production of caprolactam.
The material segment, developed in the second quarter of 2025, was the material at the level of minus 55.2 percent. and was lower by 48.6 pp. relative to the same period of the previous year.
The main negative impact on the results of the segment was the company Grupa Azoty Polyolefinsin connection with the incomplete use of production capacity associated with the start and regulation of the installation and the persistent weakening of the economic situation on the polypropylene market.
In the first half of 2025, the Azoty Group generated consolidated sales revenues at the level of PLN 7.14 billion and recorded a loss of EBITDA in the amount of minus PLN 79 million, with the EBITDA margin minus 1.1 percent, which improved by 1.6 pp. relative to the same period last year. EBITDA Correct on the impact of Azoty Polyolefins groups is PLN 160 million.
Polyolefins with a bullet at Azoty Group
A few days ago, the new Minister of State Asset assessed that the situation of Grupa Azoty is extremely difficult. Wojciech Balczun said that intensive work is underway to restructure and sanation of the company. He emphasized that until the start of investment in polyolefin (in July it turned out that Orlen, however, would not buy shares in this project) the company was stable, but the scale and poorly planned project led to serious financial problems.
The minister pointed out that currently the most important thing is to stabilize liquidity and finish the restructuring processes. The ministry is waiting for recommendations regarding the Sanation Plan, which is not only to improve the financial situation, but also to develop the target model of the company's functioning.
Balczun was convinced that the Azoty Group has potential to participate in projects related to nitrocelulose and the development of competence in the defense sector, as well as to strengthen position as a leading fertilizer producer.
