St Helier, Jersey, 2017-05-18 08:07 CEST (GLOBE NEWSWIRE) --
Frame agreement reached to sell Russian operations. Crop prices decline
1Q17 revenue and gain is up to USD 22.7mn (19.9) on increased sales volume. EBIT decrease of USD 5.3mn to USD -8.9mn (-3.6) is driven by further market price decline (corn -10%, Sunflowers –14% y-o-y) and higher COS resulting from decreased production in harvest year 2016. Negative profitability in the first quarter is expected and reflects business seasonality albeit exacerbated by falling crop prices. 1Q17 Net loss accounted for USD -9.4mn.
On the 13th of February, the company entered into a framework share purchase agreement (the "SPA") to sell its Russian operations (“the Transaction") and distribute the proceeds to the shareholders. The purchaser is Volgo-DonSelkhozinvest LLC, who paid a USD 10mn deposit on the 16th February. On the 23rd of March, the EGM of Black Earth Farming shareholders approved the Transaction.
Q1 2017 Highlights1 (vs Q1 2016)
- Total revenue and gains of USD 22.7mn (19.9)
- Sales volume of 140.6kt (118.9)
- Average sales price after distribution cost USD 128 per ton (124)
- Gross loss after distribution costs of USD -5.5mn (-0.2)
- EBIT of USD -8.9mn (-3.6)
- FX income of USD 1.0mn (0.4)
- Net loss of USD -9.4mn (-4.6)
Subsequent event.
On the 12th of April, the proposed transaction with Volgo-DonSelkhozinvest LLC received regulatory approval from FAS - the Russian Antimonopoly body.
On 4 April 2017, 1.9 mn new shares were issued as a result of the 2013-2015 Company's management incentive program. Following the issue, the total number of outstanding shares became 212 mn.
On the 11th of April, the Company finished the remaining amounts of sunflower and corn harvest.
| CEO Comment Highlights (p.2) | Financial Overview (p.5) | ||
|
· Market development · 1Q17 Sales & Financials · 2017 Crop · Revenue Risk Management · Summary |
USD million | Q1 ‘17 | Q1‘16 |
| Crop Volumes Sold (k tons) | 140.6 | 118.9 | |
| Total Revenue & Gains | 22.7 | 19.9 | |
|
Gross Profit (Loss) after Distribution afteristribution terDistribution |
(5.5) | (0.2) | |
| EBITDA | (6.1) | (2.3) | |
| EBIT | (8.9) | (3.6) | |
| FX income | 1.0 | 0.4 | |
| Net Profit (Loss) | (9.4) | (4.6) | |
Webcast details:
Date: Thursday, 18 May 2017
Time: 09:00 CET
Hosts:
Black Earth Farming CEO — Richard Warburton
Black Earth Farming CFO — Rostislav Samotsvetov
Dial-in details:
Russia 8 800 500 9283 or +7 495 213 1767
Sweden +46 (0)8 5033 6574 or 0200 880 389
UK +44 (0)330 336 9105 or 0800 279 6839
US +1 719-457-2086 or 800-263-0877
Conference title: Black Earth Farming, 1st Quarter 2017 results
Conference ID: 4804161
Webcast link:
https://pgi.webcasts.com/starthere.jsp?ei=1144697
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:
Richard Warburton, Chief Executive Officer, + 7 985 208 24 01, richard.warburton@BlackEarthFarming.com
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 246,000 hectares of what is possibly some of the world's most fertile soil. In 2016, Black Earth Farming harvested approximately 135,000 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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