ACRON : ACRON : Acron Releases 9M 2012 IFRS Consolidated Statements

     ACRON : ACRON : Acron Releases 9M 2012 IFRS Consolidated Statements

                                                              January 11, 2013

             Acron Releases 9M 2012 IFRS Consolidated Statements

      Today,  Acron (Moscow  Exchange and  LSE:  AKRN) released  its  IFRS 
consolidated condensed interim financial statements for 9M 2012.

                             Financial Highlights

  *Revenue increased  to  RUB  53.47  billion  (USD  1.72  billion),  up  16% 
    year-on-year (9M 2011: RUB 46.22 billion)

  *EBITDA* was RUB 15.22  billion (USD 490 million),  up 7% year-on-year  (9M 
    2011: RUB 14.23 billion)

  *EBITDA margin was 28% against 31% in 9M 2011. 

  *Net profit was up 13% to RUB  11.72 billion (USD 377 million) against  RUB 
    10.41 billion in 9M 2011.

  *Net debt increased 27% to RUB 42.81 billion (USD 1.39 billion) against RUB
    34.93 billion as is of the end of 2011.

  *Net debt/LTM EBITDA** was 2.0 against 1.7 as of the end of 2011.

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

 "The past nine months saw a number of important developments at Acron Group,
including the start of commissioning operations at the Oleniy Ruchey mine.  We 
have completed an important strategic task by ensuring vertical integration of
the Group's  phosphate production  chain. The  first tonnes  of Oleniy  Ruchey 
apatite concentrate were produced in December 2012; by the middle of 2013  the 
project will reach capacity, which will secure our raw material  independence, 
strengthen the  competitive  advantages  of  our  products  and  increase  the 
profitability of our whole business. Furthermore, at the end of 1Q 2012, a new
urea unit with a capacity of 335,000 tonnes per annum started up at the  Acron 
(Veliky Novgorod) site. Over the following months the unit reached its  design 
capacity and continues in normal operations mode.
 "In  the  reporting  period,  the Group  produced  4.43  million  tonnes  of 
commercial products, up  2% year-on-year. Ammonia  production increased 3%  to 
1.34 million tonnes; nitrogen fertiliser production was up 11% to 1.99 million
tonnes. At the same  time, complex fertiliser production  was down 1% to  1.92 
million tonnes. Industrial  products output did  not change significantly.  We 
consider our production  results as  high taking  into account  that even  the 
temporary suspension of operations at our  Russian NPK units in June and  July 
2012 and the large-scale overhauls at  our Acron and Dorogobuzh sites did  not 
have a significant adverse effect on our final results."

Notes on Key Items

Profit and Loss Statement
 In the reporting period  the Group's revenue was  RUB 53.47 billion, up  16% 
year-on-year. This increase in  revenue was is due  to the flexibility of  its 
product portfolio, the  Group's focus  on premium  markets in  Asia and  Latin 
America, and a favourable pricing environment.
    Global mineral  fertiliser prices were versatile during the  reporting 
period but  remained comfortable  for producers.  Average 9M  2012  indicative 
prices for key products were as follows: NPK 16-16-16: USD 454 per tonne  FOB, 
AN: USD 306 per tonne FOB, urea: USD 408 per tonne FOB, UAN: USD 285 per tonne
 The 9M 2012 cost of sales was up 20% year-on-year to RUB 30.32 billion. This
increase was caused mainly by higher prices and consumption of raw materials.
      Transportation  expenses were  up  1% to  RUB  4.16 billion  in  the 
reporting period. Selling, general and administrative expenses were RUB  4.45, 
up 33% year-on-year. The higher personnel costs and start-up and commissioning
expenses at Oleniy Ruchey were the main factor causing this increase.
    Fluctuation in the  RUB/USD exchange rate during the reporting  period 
affected the Group's financial results. As of September 30, 2012, the  RUB/USD 
exchange rate was  RUB 30.92 to  USD 1, down  from RUB 32.20  on December  31, 
2011. As  a result,  in the  reporting period  an foreign  exchange gain  from 
revaluation of the Group's assets, loans and liabilities in the amount of  RUB 
659 million was posted to its  financial activities; an foreign exchange  gain 
of RUB 719 million was posted to operating activities.
 Net  profit in  the reporting  period  totalled RUB  11.72 million,  up  13% 
year-on-year.  The  Group's  net  profit  margin  reached  22%,  against   23% 

    In the reporting period, the value of the Group's fixed assets was  up 
35% to RUB  45.30 billion.  This considerable  growth was  provided through  a 
wide-scale capital investment programme  in 9M 2012  worth RUB 12.75  billion. 
More than  half of  this  amount was  allocated  to implementing  the  Group's 
priority  project  to  produce  its  own  raw  phosphates.  Modernisation  and 
launching of new equipment  at the Group's  Russian production facilities  was 
another important part of the expenses. Engineering design work is  proceeding 
for  the   potash  project   at  the   Talitsky  area   of  the   Verkhnekamsk 
potassium-magnesium salts  deposit,  as well  as  for construction  of  a  new 
700,000-tpa ammonia unit in Veliky Novgorod.
    As of September 30, 2012, available-for-sale investments totalled  RUB 
25.68 billion, up 29% from the end  of 2011. The Group's interest in  Uralkali 
and Azoty Tarnow,  whose market price  increased in the  reporting period,  is 
included in this item.
    The Group's inventory  increased 27% to RUB 11.67 billion against  RUB 
9.18 billion at the end of 2011. The increase in inventory reflects  increased 
volume and higher prices on  the raw materials, work-in-progress and  finished 
products inventory.
      The  Group continues  to accumulate  funds  to implement  its  major 
investment programme  while  maintaining sufficient  financial  stability  and 
liquidity. The  Group's total  debt was  RUB 60.42  billion, up  25% from  the 
beginning of 2012.  With a RUB  11.97 billion  increase in debt,  cash on  the 
Group's books was also up  RUB 4.01 billion. As  a result, net debt  increased 
RUB 7.87 billion to RUB 42.81 billion,  the Group's debt burden remains at  an 
acceptable level and allows the Group to continue implementing its  investment 
programme at outpacing manner.

Market Trends
    In 4Q 2012, there was slight dip in main fertiliser prices due to  the 
off season period  in most  countries. The  Group's 1Q  2013 expectations  are 
optimistic, since current  prices on  agricultural products  are fairly  high, 
stimulating growers in most parts of  the world to use more fertilisers  while 
prices remain acceptable. 

* EBITDA is calculated as operating profit plus depreciation and amortisation,
profit (loss)  from  currency exchange  and  other non-cash  and  non-standard 

** LTM EBITDA -EBITDA calculated for the past 12 months.

The full version of the financial statements is available at 

For Further Information:


Ms. Elena Kochubey -                          Tel: 
+7 (495) 777 08 65
Head of Public Relations

Mr. Ilya Popov -                                 
Tel: + 7 (495) 411 55 94 (ext. 5252)
Head of Investor Relations


Acron Group is a leadingRussian and global mineral fertiliser producer with a
diversified product  portfolio  consisting  of multi-nutrient  (NPK  and  bulk 
blends) and straight  nitrogen-based fertilisers (urea,  ammonium nitrate  and 
UAN), as well as industrial products.  In 2011, the Group's output  (exclusive 
of own use) totalled 5.8 million  tonnes. The Group's key markets are  Russia, 
China and other Asian countries, Europe, America, and CIS countries.

In 2011, the Group's consolidated revenues under IFRS were RUB 65,431  million 
(US$ 2,226 million), and net profit was RUB 20,328 million (US$ 692  million). 
Acron's shares are  listed and traded  on the Moscow  Exchange and the  London 
Stock Exchange (ticker AKRN). Acron employs over 14,000 people.

A high vertical  integration, including  development of  potash and  phosphate 
deposits, operation of three  large production facilities, own  transportation 
infrastructure and international distribution network,  is a platform for  the 
Group's sustainable growth. The  phosphate and potash  projects in Russia  and 
Canada are Acron  Group's most intensively  evolving segment. After  launching 
the Oleniy Ruchey mining  and processing complex, the  Group will reach a  new 
stage of development by securing supplies  of its own phosphate raw  materials 
to Acron's processing facilities.

For more information about the Group please visit


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                    Source: ACRON via Thomson Reuters ONE
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