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Friday, 13 October 2017

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

     

Published: 12:57 CEST 13-10-2017 /GlobeNewswire /Source: ACRON / : AKRN /ISIN: US00501T2096

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

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 t

9M 2017

9M 2016 **

YOY, %

MINERAL FERTILISERS

Ammonia

1,923

1,568

22.6

Incl. in-house consumption

1,518

1,397

 

Nitrogen fertilisers

2,890

2,708

6.7

Incl. in-house consumption

792

480

 

AN

1,479

1,290

14.6

Incl. in-house consumption

469

121

 

Urea

692

581

19.0

Incl. in-house consumption

323

358

 

UAN

719

836

-14.0

Complex fertilisers

2,095

1,438

45.7

Incl. in-house consumption

51

11

 

NPK

1,646

1,406

17.1

Incl. in-house consumption

51

11

 

Bulk blends

449

32

14x increase

Total commercial output for Mineral Fertilisers*

4,546

3,826

18.8

INDUSTRIAL PRODUCTS

Organic synthesis products

328

281

16.8

Incl. in-house consumption

164

147

 

Methanol

74

55

33.1

Incl. in-house consumption

60

52

 

Formalin

121

105

14.7

Incl. in-house consumption

103

94

 

Urea-formaldehyde resins

134

120

11.2

Incl. in-house consumption

1

1

 

Non-organic compounds

531

507

4.7

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*

695

640

8.5


PHOSPHATE INPUTS

Apatite concentrate

871

826

5.4

Incl. in-house consumption

669

593

 

Total commercial output for apatite concentrate*

201

234

-13.7

 

TOTAL COMMERCIAL OUTPUT*

5,443

4,700

15.8

*    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 2017

Q2 2017

Q3 2016

Q3 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%



Media contacts:

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 (One Liberty Plaza, 165 Broadway, New York, NY 10006. Tel: +1 212 401 8700. www.nasdaqomx.com) on behalf of Nasdaq Corporate Solutions clients. Source: ACRON, Prechistenka Str. 37(2), Moscow 119034, Russia
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