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Acron Group Releases H1 2012 Operating Results

 Group’s Consolidated Output (Operating Results for Acron, Dorogobuzh and Hongri Acron)

Product, ‘000 t  H1 2012 H1 2011 YOY
Ammonia 945.9  900.2 5%
Incl. own use 869.4  792.4
Nitrogen fertilisers 1,427.5  1,233.0  16%
Incl. own use 201.3  167.7
Ammonium nitrate 838.6 746.6  12%
Incl. own use 49.5 36.7
Urea 277.0  228.4  21%
Incl. own use 151.8 130.9
Urea-ammonium nitrate (UAN) 311.9 258.1 21%
Complex fertilisers 1,339.5 1,292.0  4%
Incl. own use 18.1 15.2
NPK 1,165.9  1,140.4  2%
Incl. own use 18.1 15.2
Bulk blends 173.6  151.6 15%
Organic compounds 195.8  188.3  4%
Incl. own use 103.0 98.2
Methanol 39.4 37.4  5%
Incl. own use 36.5 34.9
Formalin 70.9  68.5 3%
Incl. own use 66.1 62.9
Urea-formaldehyde resins (UFR) 85.5 82.4  4%
Non-organic compounds 398.4  382.5 4%
Low-density and technical-grade ammonium nitrate 128.3 114.2  12%
Calcium carbonate 162.6  165.9  -2%
Liquid carbon dioxide 29.7  27.0  10%
Argon 3.4  3.5 -2%
Hydrochloric acid 74.3  72.0 3%
TOTAL OUTPUT (output less own consumption) 3,115.2 2,922.6 7%

Alexander Popov, acting Acron CEO, commented on the Group’s performance:

“H1 2012 operating results were mostly affected by the complex fertiliser operations shutdown at the Russian facilities of the Group forced by shortage of apatite concentrate supplies. In the second quarter, NPK and bulk blends output at the Russian facilities shrank 31% against Q1 performance. This trend continues in the beginning of the third quarter as apatite concentrate supplies to Dorogobuzh have not been resumed and the complex fertiliser operations have been idle to date. Raw materials are supplied to Acron due to prohibitive injunction issued by the Moscow Arbitrazh Court.

“In the first half of 2012, the Group’s Chinese asset Hongri Acron showed high operating results and increased complex fertiliser output by 24%. The total output of complex fertilisers by the Group in the first six months was up 4% year-on-year due to Hongri Acron’s good results and strong performance of Russian facilities in the first quarter.

“Losses from the forced shutdown of complex fertiliser operations were partially offset by conversion to nitrogen fertiliser production. Thus, ammonium nitrate output was up 12%, and the new urea plant commissioned in late March 2012 allowed increasing urea and UAN production by 21%. The aggregate nitrogen fertiliser output was up 16% year-on-year. Ammonium units operated steadily at heavy load in the reporting period and increased the output by 5%.

“The industrial product segment continued a positive trend, and the key product output increased, except calcium carbonate whose output depends on NPK production.

“In general, the conditions of mineral fertiliser global market remain predictable. The pricing environment is sustainable and currently supported by growing prices for agricultural commodities and strong demand for fertilisers from developing markets.”

 Operating Results for Acron, Dorogobuzh and Hongri Acron