Acron ups H1 IFRS earnings 6% to 13.6 bln rubles
MOSCOW. Aug 30 (Interfax) - PJSC Acron boosted net profit to International Financial Reporting Standards (IFRS) 6% year-on-year in H1 2016 to 13.555 billion rubles, the fertilizer producer said in a statement.
A net FX translation gain 2.38 billion rubles from revaluation of assets, loans and liabilities against a loss of 17.772 billion rubles a year previously was one of the profit drivers.
The group's revenue in the first half of 2016 was 51.199 billion rubles, down 2% year-on-year. In the reporting period, global fertiliser prices decreased 12% to 30% in dollar equivalent, which was mainly offset by a 9% growth in sales and a weaker ruble exchange rate. Average global indicative prices for the group's main products in the first six months of 2016 were: $317 per tonne FOB for NPK 16-16-16, $170 per tonne FOB for AN, $195 per tonne FOB for urea, and $147 per tonne FOB for UAN.
Output of key products was 3.206 million tonnes, up 3% year-on-year, including the group's Russian facilities, where output was up 9% to 3.037 million tonnes. Sales of key products totaled 3.35 million tonnes, up 9% year-on-year, including the group's Russian facilities, where sales were up 14% to 3.113 million tonnes.
Despite a 9% increase in sales, the cost of goods sold in the reporting period was only 25.888 billion rubles, up 1% year-on-year. The growth was limited due to lower potassium chloride prices, and decreased output and sales at the most cost-intensive facility - Hongri Acron in China.
Capex rose 9% year-on-year in H1 2016 to 6.703 million rubles. Capital expenditures were offset partially by proceeds from sale of available-for-sale investments.
"The main phase of investment cycle at our Russian facilities is over. The first stage of the Oleniy Ruchey mine has reached its full capacity, and the new ammonia unit has been put into operation. Thanks to these milestone events, we will see continuing production growth at the Group's Russian plants for several years to come," said Alexander Popov chairman of the Acron board of directors.