Acron Group's Commercial Output Up 6% in 9M 2021

15 October 2021

Acron Group's Commercial Output Up 6% in 9M 2021

Group's Consolidated Output (including operating results for Acron, Dorogobuzh and North-Western Phosphorous Company)

Product, '000 t	9M 2021	9M 2020	YOY, %
MINERAL FERTILISERS
Ammonia	2,164	2,071	4.5
Incl. in-house consumption	2,113	1,980
Nitrogen fertilisers, including	3,750	3,634	3.2
Incl. in-house consumption	689	562
AN	1,638	1,826	-10.3
Incl. in-house consumption	232	170
Urea	1,050	887	18.4
Incl. in-house consumption	456	391
Including prilled urea	273	381	-28.5
Incl. in-house consumption	15	11
Including granulated urea	364	145	150.5
Incl. in-house consumption	27	19
UAN	1,061	921	15.2
Complex fertilisers, including	1,945	1,747	11.4
Incl. in-house consumption	40	27
NPK	1,798	1,663	8.1
Incl. in-house consumption	40	27
Bulk blends	147	84	75.4
Total commercial output for Mineral Fertilisers	5,017	4,884	2.7
INDUSTRIAL PRODUCTS
Organic compounds, including	367	307	19.3
Incl. in-house consumption	191	155
Methanol	81	71	13.9
Incl. in-house consumption	71	57
Formalin	132	110	19.8
Incl. in-house consumption	117	96
Urea-formaldehyde resins	154	127	22.0
Incl. in-house consumption	4	2
Non-organic compounds, including:	890	757	17.5
Low-density and technical-grade AN	368	246	49.3
Industrial urea	120	92	31.4
Calcium carbonate	353	373	-5.4
Liquid carbon dioxide	44	41	7.6
Argon	5	5	-3.7
Total commercial output for Industrial Products	1,066	909	17.2
PHOSPHATE INPUTS
Apatite concentrate	936	848	10.3
Incl. in-house consumption	704	684
Total commercial output for Apatite Concentrate	232	164	41.4
TOTAL COMMERCIAL OUTPUT	6,315	5,957	6.0

Note: Commercial output is output less in-house consumption.

Comments from Alexander Popov, Chairman of Acron's Board of Directors:

'In 9M 2021, Acron Group set a new output record. In the reporting period, the Group produced 6,315,000 tonnes of commercial products, up 6% year-on-year. Mineral fertiliser output was up 3% to 5,017,000 tonnes.

'The strong demand we are seeing as the global economy recovers from the COVID-19 crisis requires that we be as focused and efficient as possible. While some producers are experiencing difficulties with logistics and feedstock supply, Acron Group sees providing farmers with fertilisers as the key objective for the entire system of food production.

'In this context, the Urea-6+ project, which significantly boosted our output of this world's most popular fertiliser, appears to be perfectly aligned with the market's needs. Since August, the unit has been operating at increased capacity, and the results are visible, with output of agricultural urea up 18% year-on-year. It is important for us that the project is in line with Acron's ESG principles: the upgraded operations include a cutting-edge unit for wastewater fine treatment, which significantly reduces our environmental impact. And because we use ??2 to produce urea, the Urea-6+ project helps decrease our carbon dioxide emissions by more than 350,000 tonnes per annum.

'Demand is strong in the industrial segment as well. The Group boosted its output of industrial products by 17% to 1,066,000 tonnes. Apatite concentrate output increased 10% to 936,000 tonnes.

'Prices continue to head upward, but major Russian fertiliser producers froze their key fertiliser prices for domestic farmers in July 2021 through the end of the autumn agricultural season. In October, the voluntary price freeze was extended through the end of 2021'.

Market Trends

In Q3 2021, global urea prices continued to climb. The FOB Baltic price approached USD 600 by the end of the quarter, reaching in October a post-2008 high of USD 700. This pricing trend was fuelled by Chinese government actions limiting urea exports, an energy crisis in Europe that led several producers to suspend operations, high grain prices, recovering demand for industrial urea, and active fertiliser purchases by India and Brazil.

In early October, the FOB Baltic price of AN hit USD 450, another post-2008 record. UAN prices set a historical record of USD 600. These upward price trends were supported by higher urea prices, which serve as a benchmark for other nitrogen fertilisers.

NPK prices were on the rise as well in Q3 2021, supported by a similar pricing trend for the basic product basket (urea, DAP, and potassium chloride). The NPK 16-16-16 premium over the basic product basket was 15%.

Average Indicative Prices, USD per t, FOB Baltic/Black Sea

	Q3 2021	Q2 2021	Q3 2020	Q3 2021 / Q2 2021 Change	Q3 2021 / Q3 2020 Change
NPK 16-16-16	425	353	253	20%	68%
AN	309	245	162	26%	91%
UAN	306	250	114	22%	168%
Urea	445	359	231	24%	93%
Ammonia	578	462	186	25%	210%

MediaContacts

Sergey Dorofeev

Anastasiya Gromova

Tatiana Smirnova

Public Relations

Phone: [phone] (ext. 5196)

Investor Contacts

Ilya Popov

Sergey Smirnov

Strategy and Investor Relations

Phone: [phone] (ext. 5252)

Background Information

Acron Group is a leading vertically integrated mineral fertiliser producer in Russia and globally, with chemical production facilities in Veliky Novgorod (Acron) and Smolensk region (Dorogobuzh). The Group owns and operates a phosphate mine in Murmansk region (North-Western Phosphorous Company, NWPC) and is implementing a potash development project in Perm Krai (Verkhnekamsk Potash Company, VPC). It owns transportation and logistics infrastructure, including three Baltic seaport terminals and distribution networks in Russia and China. Acron subsidiary North Atlantic Potash Inc. (NAP) holds mining leases and an exploration permit for ten parcels of the potassium salt deposit at Prairie Evaporite, Saskatchewan, Canada. Acron also holds a minority stake (19.8%) in Polish Grupa Azoty S.A., one of the largest chemical producers in Europe.

In 2020, the Group sold 7.8 million tonnes of its main products to 74 countries, with Russia, Brazil, Europe, and the United States as key markets.

In 2020, the Group posted consolidated IFRS revenue of RUB 119,864 million (USD 1,661 million), with EBITDA of RUB 35,311 million (USD 489 million). Acron's shares are traded on the Moscow Exchange, and its global depositary receipts are traded at the London Stock Exchange (ticker AKRN). Acron employs over 11,000 people.

For more information about Acron Group, please visit www.acron.ru/en.