- Revenue was up 22% y/y to RUB 60 472 million (1H18: RUB 49 413 million). In US dollar equivalent, revenue was up 11% to US$926 million from US$833 million.
- EBITDA* was up 34% y/y to RUB 21 035 million (1H18: RUB 15 666 million). In US dollar equivalent, EBITDA was up 22% to US$322 million from US$264 million.
- EBITDA margin was up to 35%, against 32% y/y.
- Net profit increased by a factor of 5 y/y to RUB17 196 million (1H18: RUB 3425 million). In US dollar equivalent, net profit increased by a factor of 4.6 to US$263 million from US$58 million.
- Net debt was down 3% to RUB71 896 million (31 December 2018: RUB: 74 025 million). In US dollar equivalent, net debt was up 7% to US$1140 million from US$1066 million.
- Net debt/LTM EBITDA** was down to 1.7 against 2.0 as of 31 December 2018. In US dollar equivalent, the ratio remained flat at 1.8 as of 31 December 2018.
- Output of key products was 3.803 million t, up 1.5% y/y.
- Sales of key products increased 4.7% y/y to 3.835 million t.
Alexander Popov, Chairman of Acron’s Board of Directors, commented on the results:
“We are glad to report Acron Group’s strong financial performance in 1H19. The Group’s EBITDA was up 22% to US$322 million, while EBITDA margin increased to 35%.
“In 1H19, we continued implementing investment projects as part of our Development Strategy. We allocated US$127 million to capital expenditures, up 22% y/y. At Acron (Veliky Novgorod), we put on stream two nitric acid units and started constructing the third one, which is expected to be put into operations by the end of this year. In 2019, we plan to complete construction of the urea granulation unit as well, which will produce a premium product. This year, Dorogobuzh finalises upgrades to ammonia unit, increasing its capacity. At the Oleniy Ruchey phosphate mine, the Group continues developing the underground mine, which in future allow us to increase the output.
“We made certain progress in implementing the Talitsky potash project by completing 70% of the vertical shaft sinking. In addition, we signed the Special Investment Contract with the Government of Perm Krai and the Ministry of Industry and Trade of the Russian Federation and agreed upon the preliminary terms of project financing with banks.
“Acron Group’s debt burden stays moderate. As of the end of the reporting period, net debt/EBITDA in dollar equivalent remained flat at 1.8 against the beginning of the year. Taking into account the Group’s stable financial position, Acron’s Board of Directors has recommended paying dividends twice since the beginning of the year. The general meeting approved these recommendations. The Board of Directors plans to make the third recommendation in 2019”.
Read the article online at: https://www.worldfertilizer.com/nitrogen/28082019/acron-group-releases-1h19-financial-results/