Dorogobuzh Releases Consolidated RAS Statements for 9 Months of 2009

OREANDA-NEWS. November 20, 2009. Dorogobuzh (a company in the Acron Group) announced its unaudited RAS consolidated statements for the 9 months of 2009.

Financial Highlights:

• Revenue totalled RUB 7.757 billion, down 10% year-on-year (9 months 2008 – RUB 8.608 billion);

• Operating profit was RUB 2.014 billion, down 47% from – RUB 3.821 billion in 9 months 2008;

• EBITDA* shrank 45% year-on-year to RUB 2.178 billion (9 months 2008: RUB 3.925 billion);

• EBITDA margin was 28%, down from 46% in 9 months 2008;

• Net profit totalled RUB 3.296 billion, including a gain of RUB 1.829 billion due to a mark-to-market revaluation of Dorogobuzh’s financial investments. Net profit before revaluation was down 55% year-on-year to RUB 1.467 billion, against RUB 3.239 billion in 9 months 2008.

·         EBITDA is calculated as operating profit plus depreciation and amortization.

·         Senior Vice President Alexander Popov comments:

·         “This year Dorogobuzh has achieved excellent results. We overcame the consequences of the recession fairly quickly. Production flexibility allowed us to react to the changing market and increase output by over 30%. In addition, we cut expenses to prevent higher production costs.

·         “Both domestic sales and exports of ammonium nitrate are on the rise, and Dorogobuzh responded by increasing production of these fertilisers. The market for NPK does not look as good, but Dorogobuzh still managed to increase NPK output as well due to its improved distribution structure.”

·         Dorogobuzh’s production: