OREANDA-NEWS. Group’s Consolidated Output (Operating Results for Acron, Dorogobuzh, Hongri Acron and NWPC)

Stated in ‘000 tonnes

1Q 2013

1Q 2012

YOY (%)

CHEMICAL PRODUCTS

Ammonia

482.4

475.1

2

Incl. in-house consumption

449.9

439.0

Nitrogen fertilisers, including:

752.6

688.5

9

Incl. in-house consumption

119.4

101.3

Ammonium nitrate

413.1

419.0

(1)

Incl. in-house consumption

32.4

31.2

Urea

152.0

125.3

21

Incl. in-house consumption

87.0

70.1

Urea-ammonium nitrate (UAN)

187.5

144.2

30

Complex fertilisers, including:

693.2

735.7

(6)

Incl. in-house consumption

10.4

17.1

NPK

597.0

637.6

(6)

Incl. in-house consumption

10.4

17.1

Bulk blends

96.2

98.1

(2)

Organic compounds, including:

98.3

90.4

9

Incl. in-house consumption

49.8

47.7

Methanol

21.6

18.5

17

Incl. in-house consumption

18.2

17.2

Formalin

34.1

32.5

5

Incl. in-house consumption

31.4

30.3

Urea-formaldehyde resins (UFR)

42.6

39.4

8

Non-organic compounds, including:

161.9

191.8

(16)

Low-density and technical-grade ammonium nitrate

60.3

63.2

(5)

Calcium carbonate

52.0

78.6

(34)

Liquid carbon dioxide

11.4

12.4

(8)

Argon

1.7

1.9

(12)

Hydrochloric acid

36.5

35.7

2

TOTAL COMMERCIAL OUTPUT (output less own consumption)

1,558.9

1,576.5

(1)

PHOSPHATE INPUTS

Apatite-nepheline ore
Extraction

767.7

-

-

Sales to the third parties

133.2

-

-

Apatite concentrate (production)

105.2

-

-

Acron Board of Directors Chair Alexander Popov comments on the results:

“In the first quarter 2013, the Group’s total commercial output was 1.6 million tonnes and did not change year-on-year. The Oleniy Ruchey mine has been gradually expanding its apatite concentrate production (from 21,000 tonnes in December 2012 to 45,000 tonnes in March 2013). We plan to reach 60,000 tonnes per month by the end of the second quarter 2013, which will allow the Group’s Russian production facilities to produce NPK using wholly owned phosphate raw materials.

“The Group’s operating results for the first quarter 2013 were affected by several factors. Ammonia production was up due to an increase in capacity of the ammonia units at Acron (Veliky Novgorod) and Dorogobuzh after completion of a scheduled upgrade in 2012. Urea and UAN output increased 21% and 30% with the launch of a new urea unit. NPK production was down since part of our capacity was redirected to nitrogen fertiliser production to meet seasonal high demand for nitrogen products.

“Structural changes in the product portfolio resulted in higher UFR output. Acron keeps retargeting its production at Russia’s resins of choice with a low formaldehyde grade. Non-organic compounds output was down due to weak domestic demand.

“In the first quarter 2013, the global mineral fertiliser market saw different trends. Nitrogen segment prices were up due to high demand for ammonium nitrate, urea and UAN before the spring sowing season. Complex fertiliser prices and demand were under pressure because of a decrease in global prices for phosphate and potash fertilisers.”

Global Average Prices, USD per tonne*

1Q 2013

1Q 2012

YOY (%)

NPK 16-16-16

409

451

(9)

AN

335

310

8

UAN

310

265

17

Urea

383

381

1

* Indicative FOB Baltic / Black Sea