Acron Group, Moscow, swung to a first-quarter IFRS net profit of RUB10.62 billion versus a year-ago loss of RUB10.13 billion. In U.S. dollar equivalent, net profit was $143 million.
Revenue increased 39 percent on the year to RUB38.95 billion, up from RUB28.08 billion. In U.S. dollar equivalent, revenue was up 24 percent to $524 million from the prior year $423 million.
EBITDA for the first quarter more than doubled to RUB15.74 billion, up from RUB7.28 billion a year ago, and in U.S. dollar equivalent rose 93 percent to $212 million from $110 million.
The group posted a net exchange loss of RUB504 million from revaluation of assets, loans, and liabilities in the first quarter, against a loss of RUB12.3 billion in first-quarter 2020. In the reporting period, financial derivatives delivered a profit of RUB1.44 billion versus a year-ago loss of RUB978 million.
“Acron Group posted several all-time highs for the first quarter, driven by robust sales, higher global U.S. dollar prices for mineral fertilizers, and a weaker ruble,” said Acron Group Chair Alexander Popov.
First-quarter output of key products increased 4 percent on the year at 2.035 million mt, up from the year ago 1.95 million mt (GM April 23, p. 30). Fertilizer output was up 1 percent, to 1.62 million mt. Sales volumes of key products grew 6 percent to 2.109 million mt, up from 1.99 million mt a year ago.
Popov described the sales volume as a record, and said they were made possible by three investment projects completed last year. The Urea 6+ project at Veliky Novgorod, he said, was in the final stage of construction. Last month, the group confirmed the project was on track to come on stream in the second quarter.
The completion of the urea plant upgrade will increase the unit’s production capacity by 520,000 mt/y and will increase Acron Group’s annual urea production capability by over half a million mt to 1.9 million mt, making it the largest urea producer not only in Russia, but also in Europe.
Acron’s capital expenditure in the first quarter of 2021 totaled $44 million.
Popov said although favorable market conditions and strong demand for the group’s products have continued into the second quarter, the Acron Group was “cautiously optimistic” about the current market environment and will focus on reducing its debt burden in the short run.
Acron Group’s net debt stood at RUB99.46 billion as of March 31, 2021, only slightly changed on the Dec. 31, 2020 position. In U.S. dollar equivalent, net debt was down 3 percent, to $1.314 billion from $1.348 billion. The group’s net debt/EBITDA in U.S. dollar equivalent was down to 2.2x as of March 31, 2021, versus 2.8x at the end of 2020.