Grupa Azoty faces rising gas prices and high debt

Grupa Azoty is facing significant cost pressures due to rising natural gas prices, which directly impact the profitability of nitrogen fertilizer production. During a meeting of the Parliamentary Team for Grupa Azoty in the Sejm, Vice President Małgorzata Królak noted that the average TTF gas price in the second quarter of 2026 was 45.6 euro/MWh, a 28 percent increase from the previous year. Projections suggest prices could reach as high as 102 euro/MWh due to geopolitical tensions in Ukraine and the Strait of Hormuz, limited LNG availability, and winter inventory uncertainty.

While the company reported improved operational results in the first half of 2026—with revenues of 7.7 billion PLN and an EBITDA of 610 million PLN—it continues to struggle with massive debt. Total financial liabilities reached nearly 20 billion PLN, with annual debt servicing costs of approximately 800 million PLN. To manage these challenges, the group is analyzing potential fertilizer imports from Egypt and aims to balance financial restructuring with the need to maintain a steady supply of fertilizers for Polish farmers.