Black Earth Farming : Q3 Report 2016

November 11, 2016

St Helier, Jersey, 2016-11-11 08:00 CET (GLOBE NEWSWIRE) --

Harvest 75% complete.

Lower harvest prices and wheat quality drive 9M16 net loss of USD -3,3mn (6.9)

Sunflower yields are averaging 1.8 t/ha. with approximately 78% harvested. Corn yields to date are at 5.3 t/ha with 36% harvested. Domestic prices for all crops declined steeply YOY since Q2 and wheat quality is much lower than normal. Net profit decrease of USD 10.3 mn, to USD -3.3mn in 9M15 (6.9) is primarily driven by negative revenue variance partially offset by positive FX income and stronger G&A performance. Excluding exceptional positive effect from land SWAP in 2015 of USD 7.1 mn Net profit decreased by USD 3.1 mn y-o-y from USD -0.2 mn to USD -3.3mn. The company remains in discussions with potential buyers regarding a substantial land and asset sale.

9M 2016 Highlights (vs. 9M 2015)

· Total revenue and gains of USD 64.7 mn (55.3)

· Sales volume of 317.7 kt (181.6)

· Average sales price after distribution cost per tn of USD 124 per ton (149)

· Gross profit after distribution costs of USD 8.3 mn (24.1)

· EBIT of USD 0.7 mn (5.1 excluding swap effect)

· FX income of USD 4.6 (-6.6)

· Net loss of USD -3.3 mn (-0.2 Net loss excluding swap)

· Earnings per share of USD -0.02 (-0.00 excluding swap effect)

Q3 2016 Highlights (vs. Q3 2015)

· Total revenue and gains of USD 10.8 mn (21.1)

· Sales volume of 89.5 kt (41.1)

· Average sales price after distribution cost per tn of USD 77 per ton (142)

· Gross profit after distribution costs of USD -2.5 mn (15.1)

· EBIT of USD -7.3mn (3.0)

· FX income of USD 0.9 (-8.2)

· Net loss of USD -8.5 mn (2.2)

2016 Harvest Progress

· Wheat, barley and potatoes are fully harvested, Sunflowers are 78% harvested with yields of 1.8 t/Ha. Corn is 36% harvested with yield of 5.3 t/ha.

CEO Comment Highlights (p.2)

· Market Development

· 2016 Harvest Progress

· 2016 Crop Sales

· 9M Results 2016

· Risks

· Potential land & asset sale

· Summary

Financial Overview (p.5)

USD million	Q3 '16	Q3 '15	9M '16	9M '15	9M '15 Excl.[1] SWAP	USD million
Crop Volumes Sold (ktons)	89.5	41.1	317.7.262	181.652	181.6	Crop Volumes Sold (ktons)
Total Revenue & Gains	10.8	21.1	64.7	55.3	55.3	Total Revenue & Gains
Gross Profit after Distribution	(2.5)	15.1	8.3	24.1	24.1	Gross Profit after Distribution
G&A	(5.2)	(5.7)	(12.1)	(14.4)	(14.4)	G&A
EBITDA	(5.8)	4.1	5.9	16.3	9.2	EBITDA
EBIT	(7.3)	3.0	0.7	12.2	5.1	EBIT
FX income	0.9	(8.2)	4.6	(6.6)	(6.6)	FX income
Net profit	(8.5)	2.2	(3.3)	6.9	(0.2)	Net profit

[1]The Company completed swap of Lipetsk-Tambov land and storage capacity in Q2 2015. Q3 2015 is not affected.

Webcast details:

Date:Friday, 11 November 2016

Time:09:00 CET

Hosts:

Black Earth Farming CEO - Richard Warburton

Black Earth FarmingCFO - Rostislav Samotsvetov

Dial-in details:

Russia 8 800 500 9283 or [phone]

Sweden [phone] or 0200 880 389

UK [phone] or 0800 358 6377

US [phone] or 800-263-0877

Switzerland [phone] or 0800 200 831

Conference title: Black Earth Farming, 3rd Quarter 2016 results

Conference ID: 9638182

Webcast link:

https://pgi.webcasts.com/starthere.jsp?ei=1123824

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:

Rostislav Samotsvetov, Chief Financial Officer, Black Earth Farming Ltd., tel.: [phone]

Notes to Editor:

Black Earth Farming Limited 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 harvested 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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