OREANDA-NEWS. 1Q16 revenue and gain is up to USD 19.9mn (13.5) on increased sales volume and higher average price. EBIT improved from USD -3.9mn to USD -3.6mn. Negative profitability in the first quarter is expected and reflects business seasonality. 1Q16 Net loss of USD -4.6mn (-2.1) differs from 1Q15 due to reduced positive effect from ruble revaluation: foreign exchange (FX) gain is USD 0.4mn versus USD 2.8mn in 1Q15.

Winter wheat outlook remains strong, virtually without winter kill. Seeding campaign is 72% completed. Very high rainfall so far in 2016 means soils are very wet.

2016 Highlights (vs 2015)

·         Total revenue and gains of USD 19.9mn (13.5)

·         Sales volume of 118.9kt (84.8)

·         Average sales price of 166 USD/tn (162)  

·         Gross profit of USD 4.9mn (2.3), distribution cost  USD 5.1mn (2.4)

·         G&A of USD 3.2mn (4.3)

·         Operating loss of USD -3.6mn (-3.9)

·         FX income of USD 0.4mn (2.8)

·         Net loss of USD -4.6mn (-2.1)

·         Net debt less finished good inventory of USD 7mn (11.8)

 

Significant and subsequent events

·         Strong winter wheat yield prospects, no identified   winter kill

·         Seeding campaign is 72% completed

·         Bond buyback of SEK 29mn (USD 3.4mn) par value

·         In April 2016, the Group agreed credit facility extension with VTB bank from RUR 800mn to RUR 2,400mn (from USD 11.8mn to USD 35.5mn).