Acron 1H 2011 net profit soars to 6.77 billion roubles

Acron posts 1H 2011 net profit of 6.8 billion roubles under IFRS
Russian mineral fertilizer producer, Acron, has posted a 1H 2011 net profit of 6.77 billion roubles under IFRS.

The net result jumped almost three fold from the 1H 2010 net profit of 2.5 billion roubles, with EBITDA doubling year on year to $9.1 billion roubles, on the back of a 37% year on year jump in revenues to 29.88 billion roubles.

Acron said that increasing net result reflected better operational performance, as well as foreign exchange gains, with the Company’s debts revalued against a rising rouble.It added that higher prices for mineral fertilizers worldwide, coupled with high capacity utilisation at the Group’s production facilities boosted revenues.

Alexander Popov, Chair of Acron’s Board of Directors, said strong market demand was the key driver.

“As anticipated, Acron Group showed far better results in H1 2011 compared to H1 2010 due to favourable conditions in the agricultural and mineral fertiliser markets. Global prices remain high, fuelled by stable demand, primarily in heavily populated Asian countries.

The profitability of the Group’s operations is generating sufficient cash flow to fully finance large-scale investment projects without increasing the debt burden. Growing upstream integration and increasing efficiency of production facilities ensure the Group’s competitiveness in the long-term. For this reason, the Group continues to invest heavily in the development of its core business, namely expanding production capacities and implementing raw material projects.”