Acron Group’s Commercial Output Up 3% in H1 2020
17 July 2020Acron Group’s Commercial Output Up 3% in H1 2020Group’s consolidated output (including operating results for Acron, Dorogobuzh and North-Western Phosphorous Company)Note: Commercial output is output less in-house consumptionComments from Alexander Popov, Chairman of Acron’s Board of Directors:“In H1 2020, Acron Group beat its previous record for commercial output. In the reporting period, the Group produced 3,921,000 tonnes of commercial products up 3% year-on-year. Mineral fertiliser output was up 1% to 3,231,000 tonnes.“Ammonia output increased 1% to 1,374,000 tonnes, and ammonia processed into finished products went up 10% to a record 1,306,000 tonnes. We plan to further increase our ammonia output by the end of 2020 by upgrading the Ammonia-4 unit, which will expand its capacity to 900,000 tonnes per annum. In the reporting period, agricultural-grade AN output was up 14% to 1,227,000 tonnes. Technical-grade AN output increased 67% to 156,000 tonnes, driven by the Group’s efforts to promote this niche product.“UAN output was down 25% to 648,000 tonnes, and this reflects the pricing environment, which varied by quarter. Prices were low in Q1 2020, so we dialled back UAN output to 265,000 tonnes. However, in Q2 2020, UAN prices went up due to strong demand and we reacted by increasing UAN output to 383,000 tonnes, which is close to our maximum.“In May 2020, the Acron facility in Veliky Novgorod launched a new granulated urea unit, improving production chain flexibility and introducing a new product, granulated urea. Since the unit’s commissioning, Acron has produced 34,000 tonnes of granulated urea.“NPK output was up 8% to 1,140,000 tonnes in response to strong demand and stable supplies of phosphate feedstock – apatite concentrate – from the Group’s Oleniy Ruchey mine. In the reporting period, apatite concentrate output was up 12% to 538,000 tonnes”.Market TrendsIn Q2 2020, global urea prices dropped as expected for the low-demand season. Prices found support in early June 2020, however, and industry experts expect a smooth recovery in the coming months due to strong demand in India and Brazil. The market environment will further improve when demand heats up in Q4 2020 in the Northern Hemisphere.Urea prices are a benchmark for other nitrogen fertilisers, and AN prices followed that benchmark down in Q2 2020. UAN prices, on the contrary, were up, supported by strong demand in the United States, a key market for this product.In Q2 2020, NPK prices remained relatively stable, supported by a similar pricing trend for the basic product basket. The prices remained flat in the phosphate segment, and a decrease in the nitrogen segment was offset by a price recovery in the potash segment.Average Indicative Prices, USD/t, FOB Baltic/Black SeaMedia Contacts:Sergey Dorofeev
Anastasia Gromova
Tatiana Smirnova
Public Relations
Phone: +7 (495) 777-08-65 (ext. 5196)Investor Contacts:Ilya Popov
Investor Relations
Phone: +7 (495) 745-77-45 (ext. 5252)Background InformationAcron Group is a leading vertically integrated mineral fertiliser producer in Russia and globally, with chemical production facilities in Veliky Novgorod (Acron) and the 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 has a wholly owned transportation and logistics infrastructure, including three Baltic seaport terminals and distribution networks in Russia and China. Acron’s 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 2019, the Group sold 7.6 million tonnes of main products to 78 countries, with Russia, Brazil, Europe and the United States as key markets.In 2019, the Group posted consolidated IFRS revenue of RUB 114,835 million (USD 1,774 million) and net profit of RUB 24,786 million (USD 383 million). Acron’s shares are on the Level 1 quotation list of the Moscow Exchange and its global depositary receipts are traded at the London Stock Exchange (ticker AKRN). Acron employs around 11,000 people.For more information about Acron Group, please visit www.acron.ru/en.
Anastasia Gromova
Tatiana Smirnova
Public Relations
Phone: +7 (495) 777-08-65 (ext. 5196)Investor Contacts:Ilya Popov
Investor Relations
Phone: +7 (495) 745-77-45 (ext. 5252)Background InformationAcron Group is a leading vertically integrated mineral fertiliser producer in Russia and globally, with chemical production facilities in Veliky Novgorod (Acron) and the 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 has a wholly owned transportation and logistics infrastructure, including three Baltic seaport terminals and distribution networks in Russia and China. Acron’s 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 2019, the Group sold 7.6 million tonnes of main products to 78 countries, with Russia, Brazil, Europe and the United States as key markets.In 2019, the Group posted consolidated IFRS revenue of RUB 114,835 million (USD 1,774 million) and net profit of RUB 24,786 million (USD 383 million). Acron’s shares are on the Level 1 quotation list of the Moscow Exchange and its global depositary receipts are traded at the London Stock Exchange (ticker AKRN). Acron employs around 11,000 people.For more information about Acron Group, please visit www.acron.ru/en.
