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.
*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
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.
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 www.acron.ru
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 www.acron.ru/en.
This announcement is distributed by Thomson Reuters on behalf of Thomson
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information contained therein.
Source: ACRON via Thomson Reuters ONE
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