St Helier, Jersey, 2013-08-16 08:00 CEST (GLOBE NEWSWIRE) --
Better Yields to Start Harvest, Declining Market Prices
Wheat yields up 50% on 2012 with 34% of 2013 crop area harvested as of 14 August 2013.
Improved operating result for 6M 2013 of USD* 7.1 million versus USD* -2.1 million in 2012.
Average market prices for some crops have declined 20-25% since 30 June.
Q2 2013 Highlights (vs. Q2 2012)
- Sales volumes of 56 thousand tons (89) at an average price of USD* 312 per ton (167)
- Sales revenue of USD* 19.0 million (17.9)
- USD* 21.7 million (7.4) gain on revaluation of biological assets
- Operating profit of USD* 16.9 million (3.1)
- Net result of USD* 12.4 million (-7.6)
- Net result per share of USD* 0.06 (-0.06)
Events after the Reporting Period
- 2013 harvest progress; Crop yields for winter wheat, spring barley and spring wheat of 3.3, 2.6 and 2.3 tons per hectare respectively with 84%, 53% and 21% of respective area harvested. The total 2013 harvest area is expected at approximately 224 thousand hectares.
- Declining market prices; Market prices for feed wheat and corn have dropped circa 20-25% since 30 June as global forecasts of the 2013 harvest have pressured prices.
CEO Comment Highlights (p.2 in report)
- Market Development
- 2013 Harvest Progress
- 2013 Crop Sales
- 6M 2013 Results
- Ownership Structure
Financial Overview (p. 4 in report)
USD* million Q2 2013 Q2 2012 6M 2013 6M 2012
Total Revenues & Gains 40.6 25.8 57.7 46.6
Gross Result 20.1 8.9 15.6 7.3
EBITDA 16.4 4.3 7.8 1.1
Operating Result 16.9 3.1 7.1 (2.1)
Net Income 12.4 (7.6) (0.5) (11.3)
* The functional and presentation currency for Black Earth Farming is RUR. For the convenience of readers of this report USD amounts are also presented – see also note 2 (d).
Please see attachment for complete report.
Webcasted Telephone Conference Details:
Date: Friday 16 August 2013
Time: 10:00 CET
Hosts: Black Earth Farming CEO – Richard Warburton
CFO – Erik Danemar
IR Director – Erik Lystedt
Dial-in details: Russia +7 495 580 95 43
Sweden +46 (0)8 5052 0204 or 0200 125 762
UK +44 (0)20 8515 2301 or 0800 358 5256
US +1 480 629 9645 or 1 877 762 8779
Conference Title: Black Earth Farming Q2 Report 2013
Conference ID: 463 58 87
Webcast link:
http://event.on24.com/r.htm?e=671904&s=1&k=9AB5B6BF7F686792F9DB82113F541566
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 Lystedt, Director of Investor Relations, Black Earth Farming Ltd., erik.lystedt@blackearthfarming.com
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 310,000 hectares of what perhaps is the world’s most fertile soil.
In 2013 Black Earth Farming intends to harvest approximately 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
