Today Acron (RTS, MICEX and LSE: AKRN) announced its non-audited RAS consolidated results for H1 2009.
- Revenue totalled RUB 19.54 billion, down 16% year-on-year (H1 2008: RUB 23.15 billion).
- Operating profit was RUB 3.35 billion, down 68% from RUB 10.41 billion in H1 2008.
- EBITDA* shrank 64% year-on-year to RUB 3.86 billion (H1 2008: RUB 10.77 billion).
- EBITDA margin was 20%, down from 47% in H1 2008.
- Net profit totalled RUB 4.01 billion, including a gain of RUB 4.11 billion due to a mark-to-market revaluation of Acron’s financial investments. Net loss before the revaluation was RUB 103 million, against a net profit of RUB 6.14 billion in H1 2008.
*EBITDA is calculated as operating profit plus depreciation and amortisation.
Acron Group Output
| H1 2009 (’000 tonnes) | H1 2008 (’000 tonnes) | YOY | |
|---|---|---|---|
| Ammonia | 821.2 | 788.5 | 4% |
| incl. consumption for own needs | 716.4 | 667.5 | |
| Nitrogen fertilisers, incl.: | 1,143.7 | 974.8 | 17% |
| incl. consumption for own needs | 108.6 | 135.2 | |
| Ammonium nitrate | 783.6 | 621.2 | 26% |
| incl. consumption for own needs | 28.4 | 76.6 | |
| Urea | 231.4 | 229.8 | 1% |
| incl. consumption for own needs | 80.1 | 58.6 | |
| Urea-ammonium nitrate (UAN) | 128.7 | 123.8 | 4% |
| Complex fertilisers, incl.: | 965.7 | 1,085.3 | -11% |
| incl. consumption for own needs | 14.5 | 20.4 | |
| NPK | 872.7 | 974.4 | -10% |
| incl. consumption for own needs | 14.5 | 20.4 | |
| Dry blends | 92.9 | 110.9 | -16% |
| Organic compounds, incl.: | 164.1 | 335.0 | -51% |
| incl. consumption for own needs | 87.3 | 147.7 | |
| Methanol | 31.8 | 111.5 | -71% |
| incl. consumption for own needs | 30.6 | 53.6 | |
| Formalin | 59.9 | 106.4 | -44% |
| incl. consumption for own needs | 56.2 | 93.7 | |
| Urea-formaldehyde resins (UFR) | 72.4 | 117.1 | -38% |
| Inorganic compounds, incl.: | 401.1 | 460.2 | -13% |
| Low-density and technical grade ammonium nitrate | 98.1 | 123.9 | -21% |
| Calcium carbonate | 243.4 | 249.0 | -2% |
| Liquid carbon dioxide | 18.1 | 25.6 | -29% |
| Argon | 3.1 | 3.0 | 2% |
| Hydrochloric acid | 38.5 | 58.7 | -34% |
Commenting on the operating results, Chairman of the Board of Directors Alexander Popov said:
“The Group’s strategy to diversify production is contributing to the company’s stable growth during a time of the global crisis, making it possible to flexibly respond to changes in global demand. The Group’s Russian facilities increased fertiliser production in the reporting period. Our Chinese facility Hongri Acron has not managed to restore production of complex fertilisers yet, and it is operating at half capacity for now. However, stabilisation of prices and demand for its major products will allow Hongri Acron to return to normal operating levels soon.
“Our H1 financial results reflect the negative consequences of the global economic crisis and the wild price fluctuations of late 2008. The high cost of products made from expensive raw materials stored in China and considerably lower prices on the world markets against H1 2008 adversely affected our operating margin. Net profit was also adversely affected by exchange rate differences which resulted in a negative RUB 803 million in the reporting period. Still, high demand for nitrogen and complex fertilisers in the global market and more stable prices form stronger platform for Acron’s financial sustainability. We expect further improvement in the fertilser market, which will enable the Group to continue with its investment projects.
“Despite the fact that our financial results declined against H1 2008, they are still quite strong and comparable in many respects with the same period of 2007.”