Acron Group’s Q3 2020 EBITDA Up 4%

30 November 2020

Acron Group’s Q3 2020 EBITDA Up 4%

Today, Acron Group (Moscow Exchange and LSE: AKRN) released its consolidated IFRS financial statements for Q3 and 9M 2020.

Key Financials

• Q3 2020 revenue was RUB 29,656 million (USD 403 million), up 2% year-on-year (Q3 2019: RUB 29,143 million, or USD 452 million).
• Q3 2020 EBITDA* was RUB 8,808 million (USD 120 million), up 4% year-on-year (Q3 2019: RUB 8,468 million, or USD 131 million).
• Q3 2020 EBITDA margin reached 30%, up from 29% in Q3 2019.
• Q3 2020 net loss was RUB 3,175 million (USD 44 million) (Q3 2019: profit of RUB 5,792 million, or USD 90 million).
• At the end of Q3 2020, net debt in US dollar equivalent stood at USD 1,427 million, up 10% from USD 1,300 million at the end of Q2.
• Net debt/LTM EBITDA** in US dollar equivalent was 3.2 at the end of Q3, up from 2.9 at the end of Q2.

Operating Results

• In Q3 2020, commercial output of key products was 2.036 million tonnes, up 2% year-on-year. In 9M 2020, it was 5.957 million tonnes, up 3% year-on-year.
• In Q3 2020, sales of key products totalled 1.925 million tonnes, down 2% year-on-year. In 9M 2020, it was 5.784 million tonnes, almost unchanged year-on-year.

Alexander Popov, Chairman of Acron Board of Directors, commented on the results:

‘In 2020, Acron Group’s financials have grown incrementally. The third quarter saw the highest EBITDA in US dollar equivalent since Q4 2019. Rouble-denominated EBITDA was up year-on-year. Net profit decreased due to a foreign exchange loss, but this is non-cash and, therefore, not representative. Our financials improved over recent quarters due to recovering prices for mineral fertilisers, and a weaker rouble. We expect these factors to continue to support our financial performance in the coming periods.

‘In Q3, the Group’s debt burden increased due to distribution of annual dividends and higher working capital. We believe we have passed our debt peak and expect it to decrease in the coming quarters.

‘In November, we upgraded the Ammonia-4 unit and expanded its capacity by 70,000 tpa. Another major current project is Urea 6+, where we are increasing the unit’s capacity by 520,000 tpa. Until the debt burden normalises, we will keep CAPEX at a lower level compared with previous periods’.

APPENDIX

Notes on Key Items in the Financial Statements

Financial Performance