ACRON : CORRECTION: ACRON : Acron Releases 2012 Consolidated IFRS Financial
This is a correction of the announcement from 09:58 16.04.2013 MSD. Reason for
the correction: Correction in headline
April 16, 2013
Acron Releases 2012 Consolidated IFRS Financial Statements
Today Acron (Moscow Exchange and LSE: AKRN) released its audited consolidated
IFRS financial statements for 2012.
*Revenue was up 9% year-on-year to RUB 71.11 billion (USD 2.29 billion),
against RUB 65.43 billion in 2011.
*EBITDA* was down 4% year-on-year to RUB 19.92 billion (USD 641 million)
(2011: RUB 20.86 billion).
*EBITDA margin was 28%, against 32% in 2011.
*Net profit was down 27% year-on-year to RUB 14.86 billion (USD 478
million), against RUB 20.33 billion in 2011.
*Net debt was RUB 32.67 billion (USD 1.08 billion), down 3% from RUB 33.81
billion at the end of 2011.
*Net debt/LTM EBITDA** was 1.6, with no change year-on-year.
Alexander Popov, Chair of Acron's Board of Directors, comments on the
"The reporting year was one of the most significant in the Company's history.
The key event was the launch of our mining segment, the crucial element in the
Group's vertically integrated business model. In December 2012, the Oleniy
Ruchey mine started shipping apatite concentrate, and Novgorod-based Acron and
Dorogobuzh facilities have already produced complex fertilisers using the
Group's own phosphate inputs. We have been gradually expanding the output and
plan to achieve 60-65 ktpm by this June, which will completely cover our
phosphate commodity needs. We also successfully commissioned a new urea unit
in Veliky Novgorod which increased urea and UAN output by 25% in 2012. Both
projects were completed to schedule and within budget.
"In 2012, the Group made significant advances with its two other investment
projects: construction of the Talitsky mine and a new ammonia unit at Acron
facility. We raised the required financing of over RUB 12.8 billion from three
investors and commenced construction of two shafts at the potash mine. Work on
the Ammonia-4 construction site is on schedule, and we plan to put the new
unit on stream in 2015.
"In 2012 the Group invested over RUB 16 billion in its projects. The
considerable capex notwithstanding, we are primarily committed to securing the
financial sustainability of the Group. The debt burden remains at a manageable
"In the reporting year, the Group maintained high operating performance, with
total commercial product output of 5.9 million tonnes. Despite a slight
decrease of complex fertiliser output at the Russian facilities due to
interrupted apatite concentrate supply in June-July and protracted overhaul of
the ammonia unit at our Dorogobuzh facility, the Group's facilities operated
at a high capacity utilisation rate and boosted output of certain products.
"2012 was complicated for producers of all types of mineral fertilisers. In
the first half of the year, the nitrogen market saw prices hovering around
local highs, but a number of factors dramatically depressed the market in the
second half, resulting in a price adjustment. Despite the volatility, the
nitrogen market was the only one to see higher sales, while phosphate and
potash fertiliser producers had to pull back on output due to considerably
lower demand. It is important to note that demand on the complex fertiliser
market was stable throughout the year.
"We do not forecast any deterioration on the global fertiliser markets this
year. The spring sowing season revitalised nitrogen fertiliser prices, and
higher agricultural product prices support fertiliser demand globally."
Notes on Key Items in the Financial Statements
In 2012, revenue was up 9%, to RUB 71.11 billion on the back of favourable
nitrogen fertiliser market conditions in the first half of the year, higher
sales of urea and UAN, and a sales focus on premium markets of Asia and Latin
The cost of products shipped by the Group in 2012 was RUB 40.44 billion, up
14% year-on-year. Higher production costs were due to increased prices for
natural gas, commodities and power, and increased commodity consumption in
China resulting from higher output. Higher staff costs were mainly due to a
10% increase in the Group's total personnel in 2012, to 15,644, because of
expanded operations and construction of new production capacity.
In 2012, EBITDA was RUB 19.92 billion, down 4% year-on-year. EBITDA margin was
28%. The Group's profit margin was lower because production costs outpaced
mineral fertiliser prices.
Net profit shrank 27% to RUB 14.86 billion, mainly because in 2011 the Group
sold exploration permits worth RUB 4.84 billion (before tax) and a stake in
its subsidiary which held Apatit shares worth RUB 4.26 billion (before tax).
Adjusted net profit for 2011 (less these transactions) was RUB 13.21 billion.
Therefore, when compared to the adjusted amount net profit for 2012 was up
12%. The adjusted net profit margin was 21%, up from 20% in 2011. These
financials demonstrate improved efficiency in the Group's core business.
In 2012, net cash outflow from investment activity was RUB 19.91 billion,
against RUB 602 million in 2011. The main expenditure items in 2012 were RUB
16.12 billion in capex, including revamping of production assets, investments
in the Oleniy Ruchey mine project, investments in the Talitsky mine
construction, and acquisition of a stake in Polish Azoty Tarnów worth RUB 3.88
Net cash flow from financial activity in 2012 was RUB 25.48 billion. The item
increased due to proceeds from borrowings earmarked to finance investment
activity. Moreover, in 2012 this item was supported by RUB 12.76 billion of
cash inflow from the acquisition by Vnesheconombank, Raiffeisenbank and
Eurasian Development Bank of shares in VPC's authorised capital.
As of December 31, 2012, available-for-sale investments were RUB 24.68
billion, up 24% year-on-year. This item accounts for the Group's stakes in
Uralkali and Azoty Tarnów, whose market value increased over the reporting
By the end of 2012, net debt was down 3% to RUB 32.67 billion. The relative
debt burden did not change, with net debt/EBITDA ratio remaining at 1.6. As of
December 31, 2012, the Group's total debt under loans and borrowings was RUB
61.56 billion, up RUB 13.12 billion year-on-year. The increase was due to
accumulation of free cash balance for its further utilisation in the Group's
investment and financing activity.
Based on performance for the first nine months of 2012, the Company's
shareholders approved the Board of Director's recommendation to pay interim
dividends of RUB 46 per share. RUB 1.87 billion was paid out, accounting for
16% of IFRS net profit for the nine months of 2012.
The full financial statements, as well as a presentation on performance in the
2012 fiscal year are available at www.acron.ru. The Group's operating analysis
for 2012 is detailed in the 2012 Annual Report, and a draft shall be available
at www.acron.ru on April 30, 2013.
Note: The exchange rate used for currency conversions was RUB 30.37 to USD 1
as of December 31, 2012 and RUB 32.20 for USD 1.00 as of December 31, 2011.
The average exchange rate was RUB 31.09 to USD 1 in 2012 and RUB 29.39. to USD
1 in 2011.
* EBITDA is calculated as operating profit adjusted to reflect depreciation of
fixed and intangible assets, Forex gains or losses, and other non-monetary and
** EBITDA calculated for last 12 months.
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 2012, the Group's output (exclusive
of own use) totalled 5.9 million tonnes. The Group's key markets are Russia,
China and other Asian countries, Europe, America, and CIS countries.
In 2012, the Group's consolidated revenues under IFRS were RUB 71,112 million
(US$ 2,287 million), and net profit was RUB 14,861million (US$ 478 million).
Acron's shares are listed and traded on the Moscow Exchange and the London
Stock Exchange (ticker AKRN). Acron employs over 15,600 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
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: ACRON via Thomson Reuters ONE
Press spacebar to pause and continue. Press esc to stop.