2nd Dec 2009 07:00
December 2, 2009
Acron Releases IFRS Consolidated Statements for 9M 2009
Today Acron (RTS, MICEX and LSE: AKRN) released its unaudited IFRS consolidated results for 9M 2009.
IFRS Financial Highlights for 9M 2009
Revenue totalled RUB 28.36 billion, down 22% year-on-year (9M 2008: RUB 36.30 billion)
EBITDA* shrank 69% year-on-year to RUB 5.06 billion (9M 2008: RUB 16.33 billion)
EBITDA margin was 18%, down from 45% in 9M 2008;
Net profit totalled RUB 5.79, down 48% year-on-year (9M 2008: RUB 11.18 billion).
* EBITDA is calculated as operating profit plus depreciation and amortisation.
Acron Group's Operating Results for 9M 2009
Total ammonia and mineral fertiliser output (less own consumption) totalled 3.2 million tonnes. Ammonia output in 9M 2009 was up 9%, nitrogen fertilisers were up 26 % and complex fertilisers were down 7% year-on-year.
Comments on IFRS Financial Highlights
The reporting period saw a significant decline in revenues caused by the slump in fertiliser prices. This drop was partially offset by increased output volume achieved through higher capacity utilisation and optimisation of the Group's product portfolio. Cost of sales was up 10% due to current higher prices on mineral raw materials in Russia. Cost-cutting measures delivered a 6% decrease in selling, general and administrative expenses.
The volatile exchange rate significantly affected Acron's financial performance this year. On the one hand, the strong growth of the rouble against the US dollar reduced exchange rate losses associated with revaluation of foreign currency debts, but it also provoked higher operating foreign exchange losses. In the context of the 3Q weaker global prices, this caused the EBITDA margin drop to 18%. Regardless, Acron's higher sales volume ensured higher EBITDA quarter-on-quarter.
Profit on sale of Sibneftegaz stock also affected net profit in the reporting period. Accrued interest on the 2008 Talitsky subsoil license loan was capitalised and transferred to the company's assets and so far has not diminished the reporting period's profit.
Positive operating cash flow enables the Acron Group to continue implementing its investment projects. For instance, during the reporting period Acron invested more than RUB 800 million in mine construction at the Oleniy Ruchey apatite-nepheline deposit in Murmansk region.
Income generated from the sale of Sibneftegaz stock in 3Q 2009 and rouble stabilisation reduced the Group's total debt. Net debt fell to RUB 22.95 billion against RUB 24.81 billion at the beginning of 2009. Over the reporting period the Group made concerted efforts to improve its debt structure. Specifically, most of its short-term debt was refinanced with new long-term loans and the issue of four-year RUB bonds. As a result, the Group's short-term debt was reduced 36% to RUB 11.84 billion, against RUB 18.41 billion at the beginning of 2009.
Complete statements may be found at www.acron.ru/eng
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 2008, the Group's output of ammonia and mineral fertilisers (exclusive of own use) totaled 3.6 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 2008 the Group's consolidated revenues under IFRS were RUB 43,132 million (US$ 1,734 million), and net income was RUB 9,891 million (US$ 398 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).
Related Shares:
AKRN.L