OREANDA-NEWS. July 29, 2011. Acron (28 July) reported its non-consolidated 1H11 RAS financial accounts. Buoyed by high fertiliser prices and almost 100% capacity utilisation rates, Acron’s revenues increased 41% YoY to RUB15.1bn. EBITDA margin improved a considerable 12 ppts YoY, reaching 40%. Net profit grew to RUB7.6bn including a gain of RUB3.1bn from the revaluation of financial investments held for sale. Net of this gain Acron’s 1H11 net profit increased 3.3x YoY to RUB4.5bn.

 Bottom line

Acron’s RAS financial results came in expectedly strong. We note that 2Q and 3Q financials have been historically weak due to seasonality. This time around QoQ comparisons indicate a slight improvement on the revenue line (+3% QoQ) in 2Q11 with EBITDA margin contracting only marginally by 1 ppt to 39%. This was largely due to strong NPK prices which continued to rise in 2Q11 averaging USD 434/tonne vs USD 400/tonne in 1Q11. We note that Acron is due to report its 2Q11 IFRS results in mid-August which should give us a better picture regarding the company’s financial position on a consolidated basis.