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Acron Group Releases 9M 2012 Operating Results

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

Chemical products

Product, ‘000 t 9M 2012 9M 2011 YOY
CHEMICAL PRODUCTS
Ammonia 1,339.8 1,306.3 3
Incl. own use 1,223.1 1,163.4
Nitrogen fertilisers 1,992.9 1,793.1 11
Incl. own use 298.3 244.4
Ammonium nitrate 1,054.6 1,068.4 -1
Incl. own use 56.0 44.1
Urea 432.2 337.7 28
Incl. own use 242.3 200.3
Urea-ammonium nitrate (UAN) 506.1 387.0 31
Complex fertilisers 1,921.3 1,949.4 -1
Incl. own use 21.6 20.0
NPK 1,692.4 1,732.4 -2
Incl. own use 21.6 20.0
Bulk blends 228.9 217.0 6
Organic compounds 295.5 297.2 -1
Incl. own use 149.0 154.7
Methanol 59.7 58.9 1
Incl. own use 54.7 54.6
Formalin 106.3 108.1 -2
Incl. own use 93.6 99.5
Urea-formaldehyde resins (UFR) 129.5 130.2 -1
Non-organic compounds 574.9 602.9 -5
Low-density and technical-grade ammonium nitrate 182.7 167.0 9
Calcium carbonate 234.8 277.1 -15
Liquid carbon dioxide 41.6 41.8 -1
Argon 5.3 5.3 -
Hydrochloric acid 110.5 111.7 -1

TOTAL OUTPUT (output less own consumption)

4,432.4

4,366.4

2

Phosphates

Product, ‘000 t 9M 2012 9M 2011 YOY
Apatite nepheline ore (sales) 144 - growth

Chair of Acron’s Board of Directors Alexander Popov commented on the Group’s results:

Over the first nine months of 2012, commercial output at Acron Group’s production facilities was 4.4 million tonnes, up 2% year-on-year.

It should be noted that the Group’s output was affected by upgrades of key Dorogobuzh units in the third quarter of 2012 (primarily a scheduled overhaul of the ammonia unit) and the forced suspension of NPK production at the Group’s Russian production facilities in the middle of the year due to a lack of phosphate raw materials). In October 2012, a series of overhauls will be continued at the main Acron (Veliky Novgorod) units.

The Group has offset lower output at Dorogobuzh by producing nitrogen products at Acron (Veliky Novgorod). This was made possible by the commissioning of a new urea unit and the continuous, stable operation of the ammonia unit. The increase in complex fertiliser production at Hongri Acron (China) further mitigated the effects of reduced NPK production at the Group’s Russian facilities. 

I also want to mention the start of production at North-Western Phosphorous Company (NWPC), Acron Group’s first raw material facility. In the reporting period, the Company started extracting and selling apatite-nepheline ore. In the third quarter of 2012, NWPC sold 144,000 tonnes of ore. It is expected that production of commercial apatite concentrate will commence in the fourth quarter of 2012.
 
The global market remained stable in the third quarter of 2012. High prices on agricultural products and a delay in commissioning major production operations in North Africa and the Middle East have positively affected global fertiliser prices. Moreover, demand from key consumer countries continues to grow.

Average World Prices, USD/tonne *

Q1 2012 Q2 2012

Q3 2012 9M 2012 9M 2011
NPK
16-16-16h
451 459 452 454 441
AN 310 331 276 306 315
UAN 265 295 294 285 306
Urea 381 465 377 408 410

* Indicative FOB Baltic/Black Sea

Operating Results for Acron, Dorogobuzh and Hongri Acron