Today Acron (RTS, MICEX and LSE: AKRN) announced its non-audited RAS consolidated statements for 9M 2009.
Financial Highlights
- Revenue totalled RUB 27.864 billion, down 24% year-on-year (9 months 2008: RUB 36.833 billion).
- Operating profit was RUB 5.234 billion, down 69% from RUB 17.127 billion in 9 months 2008.
- EBITDA* shrank 66% year-on-year to RUB 6.003 billion (9 months 2008: RUB 17.687 billion).
- EBITDA margin was 22%, down from 48% in 9 months 2008.
- Net profit totalled RUB 11.870 billion, including a gain of RUB 7.622 billion due to a mark-to-market revaluation of Acron’s financial investments. Net profit before the revaluation was RUB 4.248 billion, down 62% against RUB 11.302 billion as of 9 months 2008. Net profit was also affected by income generated from the RUB 3.104 billion sale of Sibneftegaz stock.
*EBITDA is calculated as operating profit plus depreciation and amortization
Chairman of the Board of Directors Alexander Popov comments:
“The Group’s consolidated results reflect steady performance. Nitrogen fertiliser output was up 26% in 9 months of 2009. Since demand for complex fertilisers has not recovered completely, production was down 7% in the reporting period. Sales of organic and non-organic compounds are off from the previous year, mainly due to the deterioration of domestic demand for manufactured products and considerably lower methanol prices in China.
“Our 9M results show that we reacted flexibly to the changing market and improved capacity utilisation, increasing commercial output 4%. We also implemented cost-cutting measures to partially offset the effects of higher input prices in Russia.
“The abolishment of export duties in Russia this February and reduced transportation costs contributed to lowering the Group’s selling costs. The stronger rouble in Q3 mitigated capital loss due to revaluation of currency debt earlier this year. Therefore, based on 9 months of 2009 results we generated substantial net profit.
“This year Acron is focused on reducing its debt load. A high debt level affects the liquidity ratio and interest repayment significantly reduces net profit. Despite these factors, in Q3 Acron successfully issued rouble bonds and sold its non-core shareholding in JSC Sibneftegaz. By doing so we improved our current liquidity position: the Group’s short-term loans total RUB 11.805 billion, down 36% from RUB 18.432 billion at the beginning of the year, and net debt as of September 30, 2009 was RUB 22.902 billion against RUB 24.627 billion as of the beginning of the year.”
| 9M 2009 (‘000 t) | 9M 2008 (‘000 t) | YOY | |
|---|---|---|---|
| Ammonia | 1,239.1 | 1,138.5 | 9% |
| incl. own consumption | 1,072.4 | 964.9 | 11% |
| Nitrogen fertilisers, incl.: | 1,677.6 | 1,326.4 | 26% |
| incl. own consumption | 171.2 | 215.5 | -21% |
| Ammonium nitrate | 1,141.7 | 765.6 | 49% |
| incl. own consumption | 44.3 | 53.2 | -17% |
| Urea | 328.3 | 333.5 | -2% |
|
incl. own consumption
|
126.8 | 162.3 | -22% |
| Urea-ammonium nitrate (UAN) | 207.7 | 227.3 | -9% |
| Complex fertilisers, incl.: | 1,526.0 | 1,636.9 | -7% |
| incl. own consumption | 22.8 | 25.9 | -12% |
| NPK | 1,381.4 | 1,476.8 | -6% |
| incl. own consumption | 22.8 | 25.9 | -12% |
| Dry blends | 0.0 | 4.9 | -100% |
| Organic compounds, incl.: | 253.6 | 481.8 | -47% |
| incl. own consumption | 132.7 | 211.4 | -37% |
| Methanol | 52.4 | 162.3 | -68% |
| incl. own consumption | 47.3 | 76.6 | -38% |
| Formalin | 91.3 | 150.8 | -39% |
| incl. Own consumption | 84.7 | 134.3 | -37% |
| Urea-formaldehyde resins (UFR) | 109.9 | 168.7 | -35% |
| incl. own consumption | 0.7 | 0.5 | 32% |
| Non-organic compounds, incl.: | 619.2 | 715.9 | -14% |
| Low density and technical-grade ammonium nitrate | 143.2 | 209.5 | -32% |
| Calcium carbonate | 371.8 | 380.6 | -2% |
| Liquid carbon dioxide | 30.9 | 36.0 | -14% |
| Argon | 4.5 | 4.8 | -6% |
| Hydrochloric acid | 68.7 | 82.9 | -17% |