November 23, 2011

Russia's Acron net profit doubles

Acron's net profit for January-September more than doubled as demand and prices for its mineral fertilisers was high, the company said on Tuesday (Nov 22).

The company said for the first nine months of the year, net profit was RUB10.4 billion (US$362 million), versus RUB4 billion (US$128.2 million) the same period last year. Revenue increased 43% to RUB46.2 billion (US$1.6 billion), from RUB32.4 billion (US$1.04 billion) the previous year.

Demand and prices for mineral fertilisers remain "sustainably high indicating strong industry fundamentals," said chairman Alexander Popov in a press release.

There was significant demand for nitrogen and complex fertilisers in Asia and Latin America, Acron said.

Acron makes fertilisers for use in the agricultural industry to sell to markets including Russia, China, Europe and Latin America. It has production facilities in Russia and China.

Acron on Monday (Nov 21) said it reached a settlement with Norway's Yara, bringing an end to a lengthy dispute over ownership of a joint venture that held a minority stake in a Smolensk fertiliser plant and other assets.

Under the complex deal, Russian phosphate fertiliser producer Phosagro is acquiring a 51% stake in the Nordic Rus venture.