2 Feb 2009 09:58
February 2, 2009
Acron Releases 2008 Operational Results
Group's Consolidated Output
| Stated in '000 tonnes | 2008 | 2007 | YOY, % |
| Ammonia | 1,494 | 1,690 | -12% |
| incl. own use | 1,242 | 1,381 | -10% |
| Straight nitrogen fertilisers, including: | 1,710 | 1,665 | 3% |
| incl. own use | 281 | 195 | 44% |
| Ammonium nitrate | 997 | 1,214 | -18% |
| incl. own use | 81 | 94 | -14% |
| Urea | 449 | 450 | 0% |
| incl. own use | 200 | 100 | 100% |
| Urea-ammonium nitrate (UAN) | 264 | 1 | |
| Multi-nutrient fertilisers, including: | 1,996 | 2,673 | -25% |
| incl. own use | 31 | 52 | -40% |
| NPK | 1,813 | 2,239 | -19% |
| incl. own use | 31 | 52 | -40% |
| NP | 5 | 136 | -96% |
| Bulk blends | 177 | 298 | -40% |
| Organic synthesis products, including: | 601 | 623 | -4% |
| incl. own use | 273 | 257 | 6% |
| Methanol | 187 | 231 | -19% |
| incl. own use | 98 | 98 | 1% |
| Formaldehyde | 193 | 184 | 5% |
| incl. own use | 174 | 154 | 13% |
| Urea-formaldehyde concentrate (UFC) | - | 6 | -100% |
| incl. own use | - | 6 | -100% |
| Urea-formaldehyde resins (UFR) | 221 | 203 | 9% |
| incl. own use | 1 | 1 | -15% |
| Inorganic synthesis products, including: | 901 | 964 | -7% |
| Low-density and industrial ammonium nitrate | 272 | 189 | 44% |
| Calcium carbonate | 484 | 554 | -13% |
| Liquid carbon dioxide | 45 | 57 | -21% |
| Argon | 6 | 7 | -5% |
| Hydrochloric acid | 93 | 157 | -41% |
Veliky Novgorod Production Facility (Russia)
| Stated in '000 tonnes | 2008 | 2007 | YOY, % |
| Ammonia | 1,034 | 1,114 | -7% |
| incl. own use | 810 | 839 | -3% |
| Straight nitrogen fertilisers, including: | 1,104 | 977 | 13% |
| incl. own use | 261 | 129 | 103% |
| Ammonium nitrate | 391 | 527 | -26% |
| incl. own use | 61 | 29 | 113% |
| Urea | 449 | 450 | 0% |
| incl. own use | 200 | 100 | 100% |
| Urea-ammonium nitrate (UAN) | 264 | 1 | |
| Multi-nutrient fertilisers, including: | 1,104 | 1,190 | -7% |
| incl. own use | 18 | 19 | -5% |
| NPK | 1,039 | 1,006 | 3% |
| incl. own use | 18 | 19 | -5% |
| NP | 5 | 136 | -96% |
| Bulk blends | 61 | 48 | 28% |
| Organic synthesis products, including: | 516 | 495 | 4% |
| incl. own use | 273 | 257 | 6% |
| Methanol | 102 | 102 | 0% |
| incl. own use | 98 | 98 | 1% |
| Formaldehyde | 193 | 184 | 5% |
| incl. own use | 174 | 154 | 13% |
| Urea-formaldehyde concentrate (UFC) | - | 6 | -100% |
| incl. own use | - | 6 | -100% |
| Urea-formaldehyde resins (UFR) | 221 | 203 | 9% |
| incl. own use | 1 | 1 | -15% |
| Inorganic synthesis products, including: | 590 | 517 | 14% |
| Low-density and industrial ammonium nitrate | 212 | 139 | 52% |
| Calcium carbonate | 353 | 348 | 1% |
| Liquid carbon dioxide | 20 | 23 | -16% |
| Argon | 6 | 7 | -5% |
Dorogobuzh Production Facility (Smolensk region, Russia)
| Stated in '000 tonnes | 2008 | 2007 | YOY, % |
| Ammonia | 396 | 474 | -16% |
| incl. own use | 385 | 460 | -16% |
| Straight nitrogen fertilisers, including: | 606 | 688 | -12% |
| incl. own use | 20 | 66 | -70% |
| Ammonium nitrate | 606 | 688 | -12% |
| incl. own use | 20 | 66 | -70% |
| Multi-nutrient fertilisers, including: | 434 | 725 | -40% |
| incl. own use | 13 | 33 | -61% |
| NPK | 402 | 618 | -35% |
| incl. own use | 13 | 33 | -61% |
| Bulk blends | 32 | 107 | -70% |
| Inorganic synthesis products, including: | 218 | 290 | -25% |
| Low-density and industrial ammonium nitrate | 61 | 50 | 22% |
| Calcium carbonate | 132 | 206 | -36% |
| Liquid carbon dioxide | 26 | 34 | -24% |
Hongri Acron (Shandong province, China)
| Stated in '000 tonnes | 2008 | 2007 | YOY, % |
| Ammonia | 64 | 102 | -37% |
| incl. own use | 47 | 83 | -43% |
| Multi-nutrient fertilisers, including: | 457 | 758 | -40% |
| NPK | 373 | 614 | -39% |
| Bulk blends | 84 | 144 | -41% |
| Organic synthesis products, including: | 85 | 129 | -34% |
| Methanol | 85 | 129 | -34% |
| Inorganic synthesis products, including: | 93 | 157 | -41% |
| Hydrochloric acid | 93 | 157 | -41% |
Alexander Popov, chairman of Acron's Board of Directors, commented on the Group's performance:
"On the whole, 2008 was not as good for the Group as 2007. In Q4, plummeting global prices for mineral fertilisers forced the Group to cut output to half the normal level. At Dorogobuzh, performance was affected by the shutdown of its ammonia unit for scheduled maintenance and the disruption of phosphate supplies earlier in 2008. Hongi Acron cut back on its production, too, due to highly volatile prices for key inputs and adverse market conditions in the second half of the year."
For Further Information:
Acron
Elena Kochubey - Tel: +7 (495) 777 08 65
Corporate Communications
Ilya Popov - Tel: + 7 (495) 411 55 94
Chief Expert
Information and Research Department
Notes to editors
Acron is a leading Russian and global mineral fertiliser producer with a diversified product portfolio consisting of multi-nutrient fertilisers such as NPK and bulk blends, and straight nitrogen-based products such as urea, ammonium nitrate and UAN. In 2008, the Group's output of ammonia and mineral fertilisers (exclusive of own use) totaled 3.6 million tonnes. The Group's key markets are Russia, China and other fast growing developing markets of South Asia, Latin America and former Soviet Union.
Acron employs over 12,000 people in Russia and China. In 2007 the Group's consolidated revenues under IFRS were RUB 31,105 million (US$ 1,267 million), and net income was RUB 5,668 million (US$ 231 million). Acron's ordinary shares are listed and traded on the MICEX, RTS and LSE stock exchanges under the symbol "AKRN".
Acron has three production facilities - Acron (Veliky Novgorod, Russia), Dorogobuzh (Smolensk Region, Russia) and Hongri Acron (Shandong Province, China). Acron's logistics and transportation capabilities include its own fleet of railway cars and three sea port trans-shipment facilities on the Baltic Sea - at the Kaliningrad port of Russia, at the Estonian Sillamäe port and at the Estonian Tallinn port. The Group operates distribution networks in Russia and China.
Acron plans to enhance its vertical integration and secure supplies of phosphate and potash inputs through the development of its own mineral resource base. The Group owns licences to develop two apatite-nepheline ore deposits in the Murmansk region and a potassium-magnesium salts deposit in the Perm region (both located in Russia).