Grupa Azoty confirms Q1 core profit as lower gas prices help offset Iran war disruption

Grupa Azoty SA

29/05/2026 07:48

    May 29 (Reuters) - Poland's Grupa Azoty ATTP.WA reported a first-quarter core profit of 316.5 million zlotys ($87.2 million) late on Thursday, in line with its preliminary estimate, as lower average natural gas prices helped offset a supply shock triggered by the Iran War.
The chemicals and fertilizer producer swung from a core loss of 8.1 million zlotys a year ago, helped by steadier Norwegian gas flows and record European renewable power generation, which eased energy-price pressure despite the supply disruptions.
Recovery led by the fertilizer segment, where cheaper gas and stronger sales volumes drove an improvement in earnings
Natural gas, the critical raw material for ammonia and nitrogen fertilizer production, accounts for 70% to 80% of the fertilizer segment's nitrogen production costs
Average European benchmark TTF spot gas prices fell 16% from a year ago to €39.6 ($46.1) per megawatt-hour in the quarter
Record renewable energy generation in Europe partially offset the price pressure, with solar output up 15% and wind power up 22% year-on-year
Stable Norwegian pipeline gas flows earlier in the quarter also helped cool prices
The Strait of Hormuz blockade limited Asian chemical and plastic imports to Europe, prompting buyers to source locally and supporting Azoty's regional sales
($1 = 3.6297 zlotys)
($1 = €0.8590)

(Reporting by Rafal Nowak in Gdansk, editing by Milla Nissi-Prussak)
((RafalWojciech.Nowak@thomsonreuters.com; +48 58 769 66 63;))