Yahoo Finance

‘Acron Group has continued to invest heavily in capacity expansion to meet the growing market demand. Over the next several weeks, we will launch the Urea-6+ unit at Acron (Veliky Novgorod) to increase the facility’s urea capacity by 520,000 tonnes per annum. Additionally, the Group embarked on upgrades to the Urea-1, Urea-2, Urea-3, and Urea-4 units to increase their consolidated capacity by 390,000 tonnes per annum, and also commenced constructing a new 700,000-tpa urea granulation unit. Upon completing this project, Acron’s Novgorod-based facility will become the largest urea production facility both in Russia and in Europe.

‘Acron Group increases the output in line with the ESG strategy focused on preserving natural resources, increasing the equipment efficiency and improving its footprint regions. Implementation of the Group’s two urea projects will help reduce direct CO2 emissions by 630,000 tonnes per annum, the equivalent of 130,000 cars.’

Market Trends

In Q2 2021, global urea prices continued to grow. By the end of the quarter, the FOB Baltic price was USD 450, reaching its post-2012 high. This price growth was driven by various factors including continued strong seasonal demand in Europe and the United States, extensive urea purchases by India, high grain prices, and higher global gas prices driving up production costs. China’s threat of a 30% export duty on urea, which resulted in limited supplies from this country, also contributed to stronger prices. In Q3 2021, purchases by India and Brazil have supported the market amid a seasonal decline in demand in Europe and the United States.

AN and UAN prices increased to their highest level since 2014 in Q2 2021 due to strong demand in the Northern Hemisphere and rising urea prices, which serve as a benchmark for other nitrogen fertilisers prices.

NPK prices were up as well in Q2 2021, supported by a similar pricing trend for the basic product basket (urea, DAP, and potassium chloride). However, the increase in basic product prices outstripped blends because of their higher liquidity, so the NPK 16-16-16 premium over the basic product basket decreased to 0-5% from the historical average of 20%.

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

Media Contacts:

Sergey Dorofeev

Anastasia Gromova

Tatiana Smirnova

Public Relations

Phone: +7 (495) 777-08-65 (ext. 5196)

Investor Contacts:

Ilya Popov

Sergey Smirnov

Investor Relations

Phone: +7 (495) 745-77-45 (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 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.