OREANDA-NEWS. Acron (Moscow Exchange and LSE: AKRN) released its consolidated condensed IFRS financial statements for 9M 2014.

Key Financials

• Revenue was up 2% year-on-year to RUB 52,676 million (USD 1,489 million) (9M 2013: RUB 51,697 million)

• EBITDA* was up 3% year-on-year to RUB 12,811 million (USD 362 million) (9M 2013: RUB 12,380 million)

• EBITDA margin was 24%, unchanged year-on-year

• Net profit was up 21% year-on-year to RUB 9,695 million (USD 274 million) (9M 2013: RUB 8,010 million)

Operating Results

• Production of key products totalled 4.840 million tonnes, up 6% year-on-year.

• Sales of key products totalled 4.813 million tonnes, up 4% year-on-year.

Senior Vice President Alexander Popov comments on the performance results:

"While Acron Group's growth in financial performance slowed in Q3 due to the planned long-term overhaul at JSC Dorogobuzh, the Group's efficiency actually improved. EBITDA margin was up to 25% in Q3, against 24% in Q2. This was driven by several factors, including a successful programme to reduce costs, internal phosphate raw materials production, tariff freezing at natural monopolies and the weakening rouble.

The Group continues to move forward with its investment programme. The Group will pass the peak of an investment phase on the Ammonia-4 project at the end of this year. The first stage of the Oleniy Ruchey mine project is expected to reach annual capacity of 1.1 million tonnes of apatite concentrate. Alongside already realized expansions of urea and UAN production, these projects will provide further growth for the Group's operating performance.

The Group's dollar-denominated net debt remains stable. The weakening of the rouble observed at the moment delivers a strong positive effect on the Group's financial performance. In Q4 we expect to see significantly stronger financials, which will also lead to a decrease in the relative debt load in dollar terms."