St Helier, Jersey, 2013-11-15 08:00 CET (GLOBE NEWSWIRE) --
Significant price drop drives results lower despite better crop yields
Average realised Q3 crop price down 30% y-o-y as market prices dropped significantly since 30 June 2013. Operational progress with better 2013 average blended crop yield reducing cash cost per ton of production y-o-y. 9M 2013 operating loss of USD*-14.4 million but improved operating cash flow of USD* 15.6 million before working capital movements affected by a late 2013 harvest.
Q3 2013 Highlights (vs. Q3 2012)
- Sales volume of 221.4 thousand tons (199.2) at an average price of USD* 154 per ton (221)
- Sales revenue of USD* 34.3 million (44.8)
- USD* -13.1 million (13.5) loss on revaluation of biological assets
- Operating result of USD* -21.6 million (14.2)
- Net result of USD* -26.3 million (11.1)
- Net result per share of USD* -0.13 (0.09)
9M 2013 Highlights (vs. 9M 2012)
- Total revenue & gains of USD* 79.5 million (105.6)
- Operating result of USD* -14.4 million (12.1)
- Loss on FX translation of USD* -4.8 million (-2.3)
- Net result of USD* -26.8 million (-0.4)
- Net result per share of USD* -0.13 (0.00)
Events after the Reporting Period
In October 2013 the company announced that it will issue a new SEK 750 million bond loan with a 9.4% coupon rate and 4 year maturity in order to refinance the old outstanding bond.
CEO Comment Highlights (p.2 in report)
- Market Development & BEF Sales
- 2013 Operational Progress
- 9M Results - 2014 Crop
- Summary & Outlook
Financial Overview (p. 4 in report)
USD* million Q3 2013 Q3 2012 9M 2013 9M 2012
Total Revenues & Gains 21.1 58.4 79.5 105.6
Gross Result (10.6) 23.2 5.1 30.5
EBITDA (17.4) 17.8 (9.4) 19.0
EBIT (22.4) 13.9 (19.5) 8.8
Net Income (26.3) 11.1 (26.8) (0.4)
* The USD equivalent figures are provided for information purposes only and do not form part of the interim consolidated financial statements – refer to note 2 (d).
Please see attachment for complete report.
Webcasted Telephone Conference Details:
Date: Friday 15 November 2013
Time: 09:00 CET
Hosts: Black Earth Farming CEO – Richard Warburton
CFO – Erik Danemar
IR Director – Erik Lystedt
Dial-in details: Russia 810 8002 198 40 11
Sweden +46 (0)8 5052 0204 or 0200 125 762
UK +44 (0)20 8515 2313 or 0800 358 5256
US +1 480 629 9835 or 1 877 941 0844
Conference Title: Black Earth Farming Q3 Report 2013
Conference ID: 464 89 96
Webcast link:
http://event.on24.com/r.htm?e=708891&s=1&k=B421420CB8AE8F345FDE3A000B619A4D
Please quote the Conference ID or Conference title to access the call.
Please call in 5 minutes before the conference starts
For additional information, please contact:
Erik Danemar, CFO, Black Earth Farming Ltd., tel: +7 495 664 27 63
Notes to Editor:
Black Earth Farming Ltd. is a leading farming company, publicly listed on Nasdaq OMX Stockholm and operating in Russia. It acquires, develops and farms agricultural land assets primarily in the fertile Black Earth region in southwest Russia. Black Earth Farming has gained a strong market position in the Kursk, Tambov, Lipetsk and Voronezh areas, controlling some 308,000 hectares of what perhaps is the world's most fertile soil.
In 2013 Black Earth Farming intends to harvest over 224,000 hectares, effectively making it one of the world's largest public farming companies by cropped area. The Company's main products are wheat, barley, sunflower and rapeseed.
Corporate website: www.blackearthfarming.com
