16 November 2009 13:23 [Source: ICIS news]
MOSCOW (ICIS news)--Acron Holding’s 2009 front nine month operating profits fell 62% to roubles (Rb) 5.2bn (€120.4m/$182.1m) as demand for complex fertilizers had not yet fully recovered from the economic downturn, the Russian fertilizer producer said on Monday.
In the January-September period of 2009, Acron's sales dropped 24 % to Rb27.9bn as deterioration in domestic demand for manufactured products forced a decrease in need for organic and non-organic compounds. Considerably lower methanol prices in China also had a negative impact on the group's sales.
Acron’s nine month net profit totalled Rb11.9bn, however this included a gain of Rb7.6bn due to a revaluation of Acron’s financial investments. The group’s net profit before the revaluation was down 62% to Rb4.248bn.
The company said net profit had also been affected by income generated from the Rb3.1bn sale of Sibneftegaz stock.
Alexander Popov, Acron's chairman of the board, said that the abolishment of Russian export duties in February, which reduced transportation costs and the group’s selling costs, and the stronger rouble in the third quarter, which mitigated capital loss, had led to the company generating substantial net profit in the first three quarters of 2009.
“The group’s consolidated results reflect steady performance," he said.
“Our nine month results show that we reacted flexibly to the changing market and improved capacity utilisation, increasing commercial output 4%. We also implemented cost-cutting measures to partially offset the effects of higher input prices in ?xml:namespace>
In January-September 2009, Acron increased production of ammonia 9% year on year to 1.24m tonnes, increased nitrogen fertilizer production by 26% to1.69m tonnes of and slowed methanol production by 68% to 52,400 tonnes of methanol.
($1 = Rb28.7/€1 = Rb42.9)
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