2 Feb 2009 07:07
February 2, 2009
Russian Government Lifts Export Duties on Certain Mineral Fertilisers
The Russian government lifted the 8.5 per cent export duty on nitrogen fertilisers and NPK effective February 1, 2008. The duty was introduced in April 2008 and was not set to expire until April 30, 2009.
Acron welcomes this move by the government aimed at supporting the fertiliser industry amid the global financial downturn. In 2008, the Group's Russian companies paid USD 55 million in export duties. Mineral fertiliser prices took a plunge in Q4 2008, contracting the export margin to a critical level. Based on current prices for mineral fertilisers and expected output, the Group expects that the lifted duties will translate into additional USD 40 million in EBITDA in 2009. Acron plans to earmark this cash for capex and loan portfolio restructuring.
Acron Group remains strongly committed to its supply contracts with Russian farmers.
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 2007, the Group's total fertiliser sales volume was 4.4 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).
AKRN.L (AKRN)