OREANDA-NEWS. Acron (Moscow Exchange and LSE: AKRN) released its unaudited consolidated condensed IFRS financial statements for H1 2014.

Key Financials

Revenue was up 4% year-on-year to RUB 35,746 million (USD 1,022 million) (H1 2013: RUB 34,251 million)

EBITDA* was down 3% year-on-year to RUB 8,586 million (USD 245 million) (H1 2013: RUB 8,818)

EBITDA margin was 24%, down from 26% year-on-year

Net profit was up 25% year-on-year to RUB 6,550 million (USD 187 million) (H1 2013: RUB 5,236 million)

Net debt was up 3% to RUB 37,891 million (USD 1,127 million) (RUB 36,633 million as of 31 December 2013)

Net debt/LTM EBITDA** was 2.5, against 2.4 as of 31 December 2013.

Operating Results

Sales of key products totalled 3.271 million tonnes, up 11% year-on-year.

Senior Vice President Alexander Popov comments on the performance results:

“Despite difficult market conditions and lower global product prices this year, we posted solid results due to higher output and effective cost controls. Specifically, we furthered our vertical integration and implemented a successful cost-cutting programme. Profitability was sustained by the weakening of the rouble against the US dollar. EBITDA was stable over the past two quarters, and we do not see any factors that could negatively impact our operations in the months ahead.

“In the reporting period, CAPEX was RUB 3,987 million as we focused on priority projects. This year, we expect to see the peak phase of the investment cycle for our major Ammonia 4 investment project and to further benefit from investment projects already completed (the Oleniy Ruchey mine, Urea and UAN projects).

“In line with plans, during the reporting period we sold part of our stake in Uralkali for RUB 3,030 million; as of 30 June 2014, our stake in the company's authorised capital decreased to 1.1%. Taking into account additional proceeds from the sale of financial investments, we are able to maintain a satisfactory level of debt burden, even during active implementation of our investment programme. We expect the debt burden to scale down after the launch of the new ammonia unit, which is scheduled for late 2015.”