St Helier, Jersey, 2015-08-14 08:00 CEST (GLOBE NEWSWIRE) --
Encouraging start to harvest
With approximately 60% harvested, winter wheat yields average 3.8 t/Ha. At 50% harvested, barley yields average 3.6 t/Ha. Corn and sunflower crops look very promising. Land swap completed with new areas integrated into a more consolidated land platform. Prices remain weak. Lower prices on lower carry-in inventory in 1H15 drive lower revenue. 1H15 operating result of USD 7.6mn (-5.4) is up USD 13.0mn y-o-y on higher biological asset valuation uplift, lower costs from operational efficiencies and weaker ruble and gain on land swap. Net income is up USD 18.4mn y-o-y to USD 4.7mn (-13.7).
Q2 2015 Highlights (vs. Q2 2014)
· Total revenue and gains of USD 20.7mn (10.8)
· Sales volume of 56kt (49)
· Average sales price of USD 181 per ton (227)
· Sales revenue of USD 10.3mn (11.5)
· EBITDA of USD 12.9mn (6.3)
· Operating profit of USD 11.5mn (3.9)
· Net profit of USD 6.7mn (5.9)
· Net profit per share of USD 0.03 (0.03)
· Net operating cash flow of USD -10.8mn (-11.1)
Significant and subsequent events
· 2015 harvest progress as of 11 August: Wheat is approximately 60% harvested with an average yield of 3.8 t/Ha. Barley is 50% harvested with an average yield of 3.6 t/Ha
· Lipetsk-Tambov land and storage swap: The swap announced on 17 March has closed in most material aspects. The Company recognized a USD 9.1mn pre-tax profit. In 1H14, the gain on the sales of assets in Voronezh generated a USD 7.2mn pre-tax gain.
CEO Comment Highlights (p.2)
- Market Development
- 2015 Harvest Progress and Crops
- 2015 Crop Sales
- 6M Results 2015
- Land Swap
- Risks
- Summary
Financial Overview (p.4)
| USD million | Q2 ‘15 | Q2 ‘14 | 6M ‘15 | 6M ‘14 |
| Crop Volumes Sold (tons) | 55,673 | 48,909 | 140,452 | 178,348 |
| Av. Sales Price | 181 | 227 | 169 | 202 |
| Total Revenue & Gains | 20.7 | 10.8 | 34.2 | 37.1 |
| Gross Profit | 9.8 | 2.0 | 12.0 | 3.3 |
| EBITDA | 12.9 | 6.3 | 10.5 | 0.5 |
| EBIT | 11.5 | 3.9 | 7.6 | (5.4) |
| Net profit/(loss) | 6.7 | 5.9 | 4.7 | (13.7) |
Please see attachment for complete report.
Webcast details:
Date: Friday, 14 August 2015
Time: 09:00 CET
Hosts:
Black Earth Farming CEO — Richard Warburton
Black Earth Farming CFO — Erik Danemar
Dial-in details:
Russia 8 800 500 93 11 or +7495 213 0977
Sweden +46 (0)8 5033 6538 or 0200 883 440
UK +44 (0)20 3427 1905 or 0800 279 4992
US +1646 254 3366 or 1 877 280 2342
Conference title: Black Earth Farming, 2nd Quarter 2015 results
Conference ID: 6483818
Webcast link:
https://pgi.webcasts.com/starthere.jsp?ei=1073635
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, Chief Financial Officer, Black Earth Farming Ltd., tel.: +7(495) 664 2763, +7(910)246 7800
Notes to Editor:
Black Earth Farming Ltd. (Jersey) is a farming company operating in Russia. Its shares are listed as depository receipts on Nasdaq OMX Stockholm. The Company 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 256,000 hectares of what is possibly some of the world's most fertile soil. In 2015, Black Earth Farming plans to harvest approximately 150,000 hectares, effectively making it one of the world’s largest public farming companies by cropped area. The Company’s main products are wheat, corn, barley, sunflower and potatoes.
Corporate website: www.blackearthfarming.com
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