JSC Acron: Acron Releases 9M 2010 IFRS Consolidated Statements

JSC Acron  / Key word(s): Quarter Results

23.11.2010 09:30
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November 23, 2010

Acron Releases 9M 2010 IFRS Consolidated Statements

Today Acron (RTS, MICEX and LSE: AKRN) released its abridged unaudited IFRS
consolidated statements for 9M 2010.

Financial Highlights

  - Revenue totalled RUB 32.43 billion, up 14% year-on-year (9M 2009: RUB
    28.36 billion)

  - EBITDA* was RUB 6.40 billion, up 17% year-on-year (9M 2009: RUB 5.49
    billion)

  - EBITDA margin was 20%, up from 19% for 9M 2009

  - Net profit totalled RUB 4.03 billion, down 30% year-on-year from RUB
    5.79 billion

*EBITDA is calculated as operating profit adjusted for depreciation and
amortisation, exchange rate gain/loss and other non-cash and extraordinary
items.

Operating Results

  - Sales totalled 4,018,000 tonnes, with no change year-on-year

  - Sales of complex fertilisers totalled 1,716,000 tonnes, up 6%
    year-on-year

  - Sales of ammonia and nitrogen fertilisers were down 4% year-on-year to
    1,626,000 tonnes

  - Sales of organic and non-organic compounds were down 1% year-on-year to
    676,000 tonnes

Comments on Key Items

The higher revenue in the reporting period was due to higher nitrogen
fertilisers prices. The higher EBITDA was procured by higher profits of
most business units of the Group, including Hongri Acron. Notably, the net
profit in 2009 was materially impacted by the sale of a stake in JSC
Sibneftegaz, whilst no transaction of this kind has taken place YTD.
Provided that the Group kept capitalising interest on the loans involved in
potash licence purchase which increased the net profit by RUB 1.42 billion.

Acron's net debt in the reporting period was RUB 27.06 billion, up 9% from
that early in 2010. The higher net debt was due to higher CAPEX in the
reporting period which totalled RUB 3.59 billion, a year-on-year increase
from RUB 2.39 billion. The major expenses were incurred from financing NWPC
which has been intensively constructing its mine in the Murmansk region.

Chairman of the Board of Directors Alexander Popov comments on the results:

'Financial highlights for 9 months of 2010 were affected by the scheduled
overhaul of Dorogobuzh facilities, as well as by the forecasted low demand
and prices for fertilisers in the first half of summer. Nevertheless, from
mid July 2010, there has been a strong trend of higher demand and prices
for mineral fertilisers. In November, prices for nitrogen and complex
mineral fertilisers reached its two-year maximum. In this period the urea
price rose from $210 to $360 per tonne, and NPK price - from $300 to $400
per tonne (FOB Baltic). Financial results for 9 months of 2010 do not
reflect this trend in full. In the fourth quarter of 2010 we expect
financial and operating results to considerably increase due to favourable
conditions in the international market.'

Acron's complete statements is available at www.acron.ru

 

For Further Information:

Acron

Ms. Elena Kochubey -                                                   
Tel:   +7 (495) 777 08 65

Head of Public Relations

Mr. Ilya Popov -                                                           
Tel:  + 7 (495) 411 55 94

Head of Investor Relations

Notes to editors

Acron is a leading Russian and global mineral fertiliser producer with a
diversified product portfolio consisting of multi-nutrient fertilisers such
as NPK and bulk blends, and straight nitrogen-based products such as urea,
ammonium nitrate and UAN. In 2009, the Group's output of ammonia and
mineral fertilisers (exclusive of own use) totaled 4.4 million tonnes. The
Group's key markets are Russia, China and other Asian countries, Europe,
Latin America, and FSU countries.

Acron employs over 13,000 people In 2009 the Group's consolidated revenues
under IFRS were RUB 37,542 million (US$ 1,182 million), and net income was
RUB 7,256 million (US$ 228 million). Acron's ordinary shares are listed and
traded on the MICEX, RTS and LSE stock exchanges under the symbol 'AKRN'.

Acron has three production facilities - Acron (Veliky Novgorod, Russia),
Dorogobuzh (Smolensk Region, Russia) and Hongri Acron (Shandong Province,
China). Acron's logistics and transportation capabilities include its own
fleet of railway cars and three sea port trans-shipment facilities on the
Baltic Sea - at the Kaliningrad port of Russia, at the Estonian Sillamäe
port and at the Estonian Muuga port. The Group operates distribution
networks in Russia and China.

Acron plans to enhance its vertical integration and secure supplies of
phosphate and potash inputs through the development of its own mineral
resource base. The Group owns licences to develop two apatite-nepheline ore
deposits in the Murmansk region and a potassium-magnesium salts deposit in
the Perm region (both located in Russia).

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