Acron Group’s Q1 2021 IFRS EBITDA Doubles
17 May 2021
Acron Group’s Q1 2021 IFRS EBITDA Doubles
Today, Acron Group (Moscow Exchange and LSE: AKRN) released its consolidated IFRS financial statements for Q1 2021.
- Revenue was up 39% year-on-year to RUB 38,952 million (Q1 2020: RUB 28,079 million). In US dollar equivalent, revenue was up 24% to USD 524 million from USD 423 million.
- EBITDA* was up 116% year-on-year to RUB 15,739 million (Q1 2020: RUB 7,279 million). In US dollar equivalent, EBITDA was up 93% to USD 212 million from USD 110 million.
- EBITDA margin was up to 40%, against 26% year-on-year.
- Net profit was RUB 10,615 million, against a loss of RUB 10,126 million year-on-year. In US dollar equivalent, net profit was USD 143 million.
- Net debt was RUB 99,464 million, only slightly changed since 31 December 2020. In US dollar equivalent, net debt was down 3% to USD 1,314 million from USD 1,348 million.
- Net debt/LTM EBITDA** was 2.3, down from 2.8 as of 31 December 2020. In US dollar equivalent, the ratio was down to 2.2 from 2.8.
- Output of key products was 2.035 million tonnes, up 4% year-on-year.
- Sales of key products totalled 2.109 million tonnes, up 6% year-on-year.
Alexander Popov, Chairman of Acron’s Board of Directors, commented on the results:
‘Acron Group posted several all-time highs for Q1 2021, with EBITDA almost doubling year-on-year to USD 212 million and EBITDA margin reaching 40%. Net profit was USD 143 million. This strong financial performance was driven by robust sales, higher global dollar prices for mineral fertilisers, and a weaker rouble.
‘In Q1 2021, sales of Acron Group's key products were up 6% to a record 2.1 million tonnes, made possible by three investment projects that were completed in 2020. This year, we are continuing to carry out our investment programme, and the Urea 6+ project is at the final stage of construction. In Q1 2021, the Group allocated USD 44 million to capital expenditures.
‘The Group's debt burden in the reporting period decreased. In US dollar equivalent, net debt/EBITDA was down to 2.2 from 2.8 as of the end of 2020, and we expect it to decrease further in the coming quarters.
‘Although favourable market conditions and strong demand for our products have continued into the second quarter, we have cautious optimism about the current market environment and will focus on reducing our debt burden in the short run’.
Notes on Key Items in the Financial Statements
In Q1 2021, Acron Group’s revenue was up 39% year-on-year to RUB 38,952 million, driven by 6% higher sales of the Group’s key products, higher global dollar-denominated prices for mineral fertilisers, and a 12% increase in the average USD-RUB exchange rate.
Average Indicative Prices, FOB Baltic Sea/Black Sea
|USD/t||Q1 2021||Q1 2020||Change|
In the reporting period, the cost of sales was up 2% year-on-year to RUB 17,874 million, mainly due to higher sales and personnel costs, which were significantly offset by smaller depreciation and amortisation and a decline in expenses for third-party services related to mined rock at the Oleniy Ruchey mine.
Selling, general, and administrative expenses were up 32% to RUB 2,876 million, mainly due to higher personnel costs, which accounted for a greater portion of both the cost of sales and selling, general, and administrative expenses due to salary adjustments, staff costs denominated in foreign currency, and a weaker rouble.
Transportation expenses were up 21% to RUB 5,363 million, driven by increased sales and a higher cost of logistics outside Russia due to a weaker rouble. Increased sales to Latin America on terms including transportation also contributed to the change in this item.
EBITDA increased 116% to RUB 15,739 million. In the reporting period, EBITDA margin reached 40%, against 26% in Q1 2020.
Interest expense was RUB 573 million, up from RUB 486 million in Q1 2020, due to lower borrowing costs capitalised as part of assets under construction and the subsoil licence.
In Q1 2021, the Group posted a net exchange loss of RUB 504 million from revaluation of assets, loans and liabilities, against a loss of RUB 12,301 million in Q1 2020. In the reporting period, financial derivatives delivered a profit of RUB 1,444 million, against a loss of RUB 978 million in Q1 2020.
In Q1 2021, net profit was RUB 10,615 million, against a loss of RUB 10,126 million in first three months of 2020.
In Q1 2021, net operating cash flow increased by a factor of 6.0 to RUB 4,631 million from RUB 774 million in Q1 2020 because of an increase in net profit and an upswing in working capital, which increased RUB 8,452 million in Q1 2021 (up RUB 5,979 million in Q1 2020).
Net cash used in investing activities in Q1 2021 was down 16% to RUB 3,183 million from RUB 3,791 million in Q1 2020. Capital expenditures were down 12% to RUB 3,266 million from RUB 3,708 million in Q1 2020. In dollar equivalent, capital expenditures were USD 44 million against USD 56 million in Q1 2020.
Net cash used in financial activities in Q1 2021 was RUB 5,090 million, against RUB 11,450 million generated by the Group from financing activities in Q1 2020. The cash outflow in the reporting period was due to RUB 4,813 million in repaid net borrowings, while cash inflow in Q1 2020 resulted from net borrowings of RUB 17,929 million.
On 31 March 2021, total debt was RUB 111,542 million, down 3% from RUB 115,537 million on 31 December 2020. In US dollar equivalent, total debt was USD 1,473 million, down 5% from USD 1,558 million as of the end of 2020. The share of long-term debt was 67% as of the end of Q1 2020.
Net debt as of the end of Q1 2021 was RUB 99,464 million, changed only slightly from 31 December 2020. In US dollar equivalent, net debt was USD 1,314 million, down 3% from USD 1,348 million on 31 December 2020.
Net debt/LTM EBITDA at the end of Q1 2021 was 2.3, against 2.8 on 31 December 2020. In US dollar equivalent, the ratio was down to 2.2 from 2.8.
Global urea prices grew rapidly in Q1 2021. Baltic FOB prices reached a seven-year record-high of USD 350. This sharp rise was driven by several factors, including strong seasonal demand in Europe and the United States, limited urea volume available for export from China, an increase in global prices for natural gas, and record-high grain prices. India’s urea purchases and limited Chinese supplies of the product are giving the market additional support in Q2.
First-quarter AN and UAN prices also increased to their highest levels in several years due to strong seasonal demand in the Northern Hemisphere and growth in urea prices, which are used as a benchmark for other nitrogen fertiliser prices.
NPK prices increased in Q1 2021 as well, mainly driven by higher prices for basic products (urea, DAP, and potassium chloride). The increase in basic product prices outstripped blends because of their higher liquidity, so the NPK 16-16-16 premium over the basic product basket decreased to 5% from the historical average of 20%.
Average Indicative Prices, USD per t, FOB Baltic/Black Sea
|Q1 2021||Q4 2020||Q1 2020||Q1 2021/|
The full version of Acron Group’s financial statements is available at www.acron.ru/en
Note: The exchange rate used for currency conversion was RUB 75.7023 to USD 1 as of 31 March 2021 and RUB 77.7325 to USD 1 as of 31 December 2020. The average exchange rate for the first three months of 2021 was RUB 74.3414 to USD 1. The average exchange rate for the first three months of 2020 was RUB 66.3818 to USD 1.
* EBITDA is calculated as operating profit adjusted for depreciation and amortisation, foreign exchange gain or loss on operating transactions, and other non-cash and extraordinary items.
** LTM EBITDA is EBITDA calculated for the past 12 months.
Phone: +7 (495) 777-08-65 (ext. 5196)
Phone: +7 (495) 745-77-45 (ext. 5252)
Acron Group is a leading vertically integrated mineral fertiliser producer in Russia and globally, with chemical production facilities in Veliky Novgorod (Acron) and Smolensk region (Dorogobuzh). The Group owns and operates a phosphate mine in Murmansk region (North-Western Phosphorous Company, NWPC) and is implementing a potash development project in Perm Krai (Verkhnekamsk Potash Company, VPC). It owns transportation and logistics infrastructure, including three Baltic seaport terminals and distribution networks in Russia and China. Acron subsidiary North Atlantic Potash Inc. (NAP) holds mining leases and an exploration permit for ten parcels of the potassium salt deposit at Prairie Evaporite, Saskatchewan, Canada. Acron also holds a minority stake (19.8%) in Polish Grupa Azoty S.A., one of the largest chemical producers in Europe.
In 2020, the Group sold 7.8 million tonnes of main products to 74 countries, with Russia, Brazil, Europe and the United States as key markets.
In 2020, the Group posted consolidated IFRS revenue of RUB 119,864 million (USD 1,661 million), with EBITDA of RUB 35,311 million (USD 489 million). Acron’s shares are traded on 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.
To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.
One Liberty Plaza - 165 Broadway
NY 10006 New York
GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.
Subscribe to releases from GlobeNewswire
Subscribe to all the latest releases from GlobeNewswire by registering your e-mail address below. You can unsubscribe at any time.
Latest releases from GlobeNewswire
Bavarian Nordic leverer vacciner til Englands beredskab i forbindelse med nye tilfælde af abekopper11.6.2021 19:12:35 CEST | pressemeddelelse
KØBENHAVN, Danmark, 11. juni 2021 – Bavarian Nordic A/S (OMX: BAVA) meddelte i dag, at selskabet for nylig er blevet anmodet af de engelske sundhedsmyndigheder, Public Health England (PHE) og Medicines and Health Products Regulatory Agency (MHRA), om at levere koppevaccinen IMVANEX® til vaccination i forbindelse med nye, udefrakommende tilfælde af abekopper i mennesker i England. To relaterede tilfælde er blevet bekræftet og er blevet indlagt på et hospital i Liverpool. Den ene er sandsynligvis blevet smittet i Afrika, hvorfra familien ankom et par dage inden sygdommen brød ud, mens den anden sandsynligvis er blevet smittet af det første tilfælde efter hjemkomsten. Abekopper er en sjælden, men alvorlig sygdom, der naturligt forekommer i det centrale og det vestlige Afrika. Sygdommen er beslægtet med den menneskelige koppesygdom, om end den er mindre alvorlig med en dødelighed, der er estimeret til at være fra 1-10% af tilfældene. IMVANEX (MVA-BN) er godkendt af Europa-Kommissionen til
Bavarian Nordic Assists Public Health England in Response to New Cases of Monkeypox11.6.2021 19:12:35 CEST | Press release
COPENHAGEN, Denmark, June 11, 2021 – Bavarian Nordic A/S (OMX: BAVA) announced today that the Company was recently engaged by Public Health England (PHE) and the Medicines and Health Products Regulatory Agency (MHRA) to supply its IMVANEX® smallpox vaccine in response to new cases of monkeypox in the UK. Two related cases were confirmed and admitted to a hospital in Liverpool. One was most likely infected in Africa, where the family arrived from a few days before onset of disease, and a sibling case most likely infected on UK soil by the first case. Monkeypox is a rare, but serious disease, which is endemic in Central and West Africa. The disease is quite similar to human smallpox, although it is less severe with an estimated fatality rate of 1-10%. IMVANEX (MVA-BN) is approved by the European Commission for active immunization against smallpox but has also received approval for monkeypox by the U.S. Food and Drug Administration (FDA) and Health Canada, as the only vaccine approved for
Minister Eriksen Søreide, Deputy Minister Ryabkov, and Deputy Secretary Hicks to Keynote 2021 Carnegie International Nuclear Policy Conference11.6.2021 17:30:00 CEST | Press release
Senior officials, leaders, and experts in defense, security, and nuclear policy convene for a 3-day conference on the most-pressing challenges in nuclear arms control, nonproliferation, deterrence, and security WASHINGTON, June 11, 2021 (GLOBE NEWSWIRE) -- From June 22-24, 2021, the Carnegie Endowment for International Peace will host its biennial International Nuclear Policy Conference virtually, including keynote addresses from: Ine Eriksen Søreide, Minister of Foreign Affairs for NorwaySergey Ryabkov, Deputy Minister of Foreign Affairs of the Russian FederationKathleen Hicks, U.S. Deputy Secretary of Defense Other speakers include: Izumi Nakamitsu, UN-Secretary-General and High Representative for Disarmament Affairs; Bishop Garrison, Senior Advisor to the U.S. Secretary of Defense for Human Capital and Diversity, Equity and Inclusion; Harry Harris, former U.S. ambassador to the Republic of Korea; and Maleeha Lodhi, former UN Representative for Pakistan. The full conference agenda ca
CONDITIONS FOR RIKSBANK REVERSED AUCTIONS SEK GOVERNMENT BONDS11.6.2021 16:20:00 CEST | Press release
Bid procedure, 2021-06-18BondsSWEDEN I/L BOND: 3114. SE0013748258. 2030-06-01 SWEDEN I/L BOND: 3111, SE0007045745, 2032-06-01 Bid date2021-06-18Bid times09.00-10.00 (CET/CEST) on the Bid dateRequested volume (corresponding nominal amount)3114: 250 mln SEK +/-150 mln SEK 3111: 500 mln SEK +/-250 mln SEK Highest permitted bid volume (corresponding nominal amount)3114: 250 mln SEK per bid 3111: 500 mln SEK per bid Lowest permitted bid volume (corresponding nominal amount)SEK 50 million per bidExpected allocation timeNot later than 10.15 (CET/CEST) on the Bid dateDelivery and payment date2021-06-22Delivery of bondsTo the Riksbank's account in Euroclear Sweden AB's securities settlement system 1 4948 6383 Stockholm, 2021-06-11 This is a translation of the special terms and conditions published on www.riksbank.se. In the case of any inconsistency between the English translation and the Swedish language version, the Swedish language version shall prevail. Complete terms and conditions can be
CONDITIONS FOR RIKSBANK REVERSED AUCTIONS SEK TREASURY BILLS11.6.2021 16:20:00 CEST | Press release
Bid procedure, 2021-06-16BillsSWEDISH T-BILL: SE0014808747. 2021-09-15 SWEDISH T-BILL: SE0015244405, 2021-12-15 SWEDISH T-BILL: SE0015659529, 2022-03-16 Bid date2021-06-16Bid times10.00-11.00 (CET/CEST) on the Bid dateRequested volume (corresponding nominal amount)SE0014808747: 1000 mln SEK +/-500 mln SEK SE0015244405: 1000 mln SEK +/-500 mln SEK SE0015659529: 500 mln SEK +/-250 mln SEK Highest permitted bid volume (corresponding nominal amount)SE0014808747: 1000 mln SEK per bid SE0015244405: 1000 mln SEK per bid SE0015659529: 500 mln SEK per bid Lowest permitted bid volume (corresponding nominal amount)SEK 50 million per bidExpected allocation timeNot later than 11.15 (CET/CEST) on the Bid dateDelivery and payment date2021-06-18Delivery of billsTo the Riksbank's account in Euroclear Sweden AB's securities settlement system 1 4948 6383 Stockholm, 2021-06-11 This is a translation of the special terms and conditions published on www.riksbank.se. In the case of any inconsistency between t
CONDITIONS FOR THE RIKSBANK´S PURCHASES OF COMMERCIAL PAPER11.6.2021 16:20:00 CEST | Press release
Bid procedure, 2021-06-16CertificateCommercial paper issued in SEK by non-financial companies with their registered office in Sweden and with a remaining maturity of up to six months on the Bid date. i.e. with the latest maturity date as of 2021-12-16 Delivery may not be made in commercial paper purchased by the Counterparty from the issuer less than one week prior to the date for announcing the Special terms, i.e. the purchase may not have been made after 2021-06-04 BidsCounterparties may make one bid per Credit rating class and maturity class. Bids are made to tel 08-696 69 70 and confirmed by e-mail to EOL@riksbank.se.Bid date2021-06-16Bid times09.00-09.30 (CET/CEST) on the Bid dateRequested volume (corresponding nominal amount)SEK 4 billionHighest permitted bid volume (corresponding nominal amount)The total bid volume from one Counterparty for the two Credit rating classes may not exceed SEK 4 billion. No bid may contain Commercial paper in excess of SEK 250 million issued by the s
CONDITIONS FOR RIKSBANK REVERSED AUCTIONS SEK COVERED BONDS11.6.2021 16:20:00 CEST | Press release
Bid procedure, 2021-06-17BondsSWEDBANK HYPOTEK AB: 192. SE0010133207. 2023-03-15 STADSHYPOTEK AB: 1588, SE0011063015, 2024-03-01 SWEDISH COVERED BOND: 151, SE0013486156, 2030-06-12 SKANDINAVISKA ENSKILDA: 581, SE0013102043, 2026-12-16 LANSFORSAKRINGAR HYPOTEK: 519, SE0012324341, 2026-09-16 DANSKE HYPOTEK AB: 2512, SE0013877214, 2025-12-17 NORDEA HYPOTEK AB: 5533, SE0010442731, 2023-09-20 Bid date2021-06-17Bid times09.00-10.00 (CET/CEST) on the Bid dateRequested volume (corresponding nominal amount)192: 800 mln SEK +/-400 mln SEK 1588: 2000 mln SEK +/-1000 mln SEK 151: 700 mln SEK +/-350 mln SEK 581: 700 mln SEK +/-350 mln SEK 519: 600 mln SEK +/-300 mln SEK 2512: 200 mln SEK +/-100 mln SEK 5533: 1000 mln SEK +/-500 mln SEK Highest permitted bid volume (corresponding nominal amount)192: 800 mln SEK per bid 1588: 2000 mln SEK per bid 151: 700 mln SEK per bid 581: 700 mln SEK per bid 519: 600 mln SEK per bid 2512: 200 mln SEK per bid 5533: 1000 mln SEK per bid Lowest permitted bid volume