Source - GNW

13 October 2017

Acron Group's Fertiliser Output Up 19% in 9M 2017

Group's Consolidated Output
(including operating results for Acron, Dorogobuzh and North-Western Phosphorous Company)

Product, '000 t9M 20179M 2016 **YOY, %
MINERAL FERTILISERS
Ammonia1,9231,56822.6
Incl. in-house consumption1,5181,397 
Nitrogen fertilisers2,8902,7086.7
Incl. in-house consumption792480 
AN 1,479 1,290 14.6
Incl. in-house consumption469121  
Urea 692 581 19.0
Incl. in-house consumption323358  
UAN 719 836 -14.0
Complex fertilisers2,0951,43845.7
Incl. in-house consumption5111 
NPK 1,646 1,406 17.1
Incl. in-house consumption5111  
Bulk blends 449 32 14x increase
Total commercial output for Mineral Fertilisers*4,5463,82618.8
INDUSTRIAL PRODUCTS
Organic synthesis products32828116.8
Incl. in-house consumption164147 
Methanol 74 55 33.1
Incl. in-house consumption6052  
Formalin 121 105 14.7
Incl. in-house consumption10394  
Urea-formaldehyde resins 134 120 11.2
Incl. in-house consumption11  
Non-organic compounds5315074.7
Low-density and technical-grade AN 104 140 -25.8
Calcium carbonate 380 320 18.8
Liquid carbon dioxide 42 42 1.2
Argon 4 5 -5.1
Total commercial output for Industrial Products*6956408.5

PHOSPHATE INPUTS
Apatite concentrate8718265.4
Incl. in-house consumption669593 
Total commercial output for apatite concentrate*201234-13.7
 

TOTAL COMMERCIAL OUTPUT*
5,4434,70015.8
*    Commercial output is output less in-house consumption.
**  Excluding Hongri Acron output (due to sale of the plant in 2016)
 
Chairman of Acron's Board of Directors Alexander Popov commented on the results:
 
"Acron Group's facilities increased mineral fertiliser output 19% in nine months of 2017. They achieved all-time high results for 9M and H1 due to sustainable operation of the ammonia unit commissioned in 2016 in Veliky Novgorod and upgrades to key production units at both facilities.

"The Group increased ammonia output by almost 25%, with the new Ammonia-4 unit more than tripling its output year-on-year to 582,000 tonnes (9M 2016: 176,000 tonnes). Following upgrades to the urea units at Acron's Veliky Novgorod facility, urea output increased 19%. Ammonium nitrate output at the Acron and Dorogobuzh facilities increased 19% and 12%.

"Complex fertiliser output was up 46% over nine months of the year. Acron Group is adapting to changing market conditions and growing demand for complex fertilisers by increasing its output and range of brands. The Group will continue to produce new brands of NPK and blended fertilisers to meet the market's needs.

"The Group hit another record with its NPK output, which climbed 17% due to implementing the project, which increased capacity at the two Veliky Novgorod-based NPK units to 2,000-tpd. In 2016, Dorogobuzh also revamped its NPK unit as part of a scheduled overhaul.

"In the reporting period, apatite concentrate output increased 5% despite poor results for Q1, which were caused by considerable overburden operations. In Q2 and Q3, apatite concentrate output hit a record high. Mine expansion work is underway, and the first 44,000 tonnes of ore were produced at the underground mine in Q3.

"We will continue to see output increase as an effect of our new investment programme for production expansion through 2025".

Market Trends
 
Nitrogen fertiliser prices actively recovered in Q3 2017: in early July, urea prices were $180 FOB Baltics, and by late September they reached $260. The recovery was supported by strong demand from Brazil, which has boosted urea imports 50% this year. In September, the market was supported by aggressive demand in India, where favourable weather conditions encouraged generous fertiliser application. At the same time, higher coal prices triggered a cost increase in China. These factors combined to provide support for urea prices.

The fourth quarter is expected to see traditionally strong seasonal demand before the upcoming spring sowing season in the Northern hemisphere, which will further sustain prices. According to industry experts, prices will hover at a higher level until February 2018. However, further growth is limited by increased supplies from China, where exports regain competitiveness at current prices.

Prices for premium nitrogen fertilisers, AN and UAN, recovered late in the third quarter following urea prices. The AN premium over urea increased due to strong demand in Brazil. The UAN premium vanished because of increased U.S. output and stronger competition.

In September, NPK prices increased due to higher prices in the nitrogen and potash segments. The NPK premium over the basic product basket- - urea, DAP and potash - remained high.

 
Average Indicative Prices, USD/t, FOB Baltic/Black Sea
 
  Q3 2017Q22017 Q3 2016Q3 2017 /
Q2 2017 change
Q3 2017 /
Q3 2016 change
NPK 16-16-16 262 264 277 -0.8% -5.5%
AN 184 168 147 +9.9% +25.2%
UAN 126 137 127 -7.5% -0.1%
Urea 205 191 181 +7.0% +13.1%
Ammonia 199 284 210 -30.1% -5.5%

Mediacontacts:

Tatiana Smirnova
Public Relations
Phone: +7 (495) 777-08-65 (ext. 5196)
 
Investor contacts:
Ilya Popov
Investor Relations
Phone:  +7 (495) 745-77-45 (ext. 5252)

Background Information

Acron Group is a leading vertically integrated mineral fertiliser producer in Russia and globally, with chemical production facilities in Veliky Novgorod (Acron) and Smolensk (Dorogobuzh). The Group owns and operates a phosphate mine in Murmansk region (NWPC) and plans implementing a potash development project in Perm Krai (VPC). It has a wholly owned transport and logistics infrastructure and distribution networks in Russia and China.

In 2016, the Group sold 6.4 million tonnes of various products to 63 countries, with Russia, Brazil, Europe and the United States as key markets.

In 2016, the Group posted consolidated revenue under IFRS of RUB 89,359 million (USD 1,333 million) and net profit of RUB 25,525 million (USD 381 million). Acron's shares are on the Level 1 quotation list of the Moscow Exchange and its global depositary receipts are traded at the London Stock Exchange (ticker AKRN). Acron employs over 11,000 people.

For more information about Acron Group, please visit www.acron.ru/en.

 
 
 




This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: ACRON via Globenewswire