Acron Reports Threefold Increase in Profit |
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(bloomberg) --
Acron, a Russian fertilizer producer, said profit more than tripled last year as
prices and output increased. Borrowings jumped 20 %.
Net income advanced
to 18.3 billion rubles (USD622 million) from 5.58 billion rubles a year earlier,
the Velikiy Novgorod- based company said in a statement. Net debt rose to 31.8
billion rubles (USD1.14 billion) from 28.3 billion rubles, exceeding a USD1.03
billion estimate from Russian bank VTB Capital.
"Acron’s results came in
mixed,” said Kevin Whyte, an analyst at VTB Capital in Moscow. “While the
company was expected to benefit from higher fertilizer prices, the higher-
than-expected increase in costs and net debt was a negative
surprise."
Acron, which produces nitrogen fertilizers, has borrowed funds
to expand as it diversifies into phosphates and potash. The company obtained a
USD1.1 billion loan from state development bank VEB for its Talitsky potash
project last year. It also earmarked USD400 million to build an ammonia plant in
Velikiy Novgorod and last month opened a new USD95 million urea factory. |
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mrcplast.com | |
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