Another Strong Start of Year for ADAMA


Another Strong Start of Year for ADAMA

Delivers Record High Profits

PR Newswire

TEL AVIV, Israel, May 28, 2017 /PRNewswire/ —

  • Sales of $843 million, in line with Q1 last year in constant currencies:  
    • 1.2% lower, in USD terms
    • Volumes up 3.7%, commencing another consecutive year of growth
  • Gross profit up 5.2% to $311 million:
    • 2.2 percentage point increase in gross margin to 36.9%
    • Driven by strong improvement in portfolio mix and continued cost reduction
  • All-time record high operating income of $136 million, up 5.8%:
    • Operating margin up 1.1 percentage points to 16.2%
  • All-time record high net income of $114 million, up 13.3%:
    • Net income margin up 1.8 percentage points to 13.6%
  • All time record-high EBITDA of $180 million, up 4.5%:
    • EBITDA margin up 1.1 percentage points to 21.3%
  • Improvement of $97m in working capital:
    • Driven by $74 million reduction in inventory
  • Significantly reduced leverage:
    • Balance sheet net debt of $953 million, $248 million below Q1 last year
    • Reduced financial expenses
    • Net debt / EBITDA ratio of 1.8x vs. 2.5x in Q1 last year
  • Combination with Sanonda:
    • Following recent approval by a significant majority of Sanonda’s public shareholders, now awaiting final CSRC consent

ADAMA Agricultural Solutions Ltd. today reported its financial results for the first quarter ended March 31, 2017.


% Change

% Change

Adjusted, US$m 

Q1 2017

Q1 2016








Gross profit




     Gross margin



Operating income (EBIT)




     EBIT margin



Net income




     Net income margin







     EBITDA margin



CER: Constant Exchange Rates. Q1 2016 items include adjustment for the value redeployment of employee
options granted in 2014 in the amount of $3 million.



Commenting on the results, Yang Xingqiang, Chairman of Adama’s Board of Directors, said, “This is a strong first quarter for Adama, commencing another year of consecutive progress, with solid execution of our strategy yielding tangible results. We continue to significantly enhance our commercial and product development platforms globally, while our build up and integration in China are in full swing. We are looking forward to reaching a key milestone with the completion of Adama’s combination with Sanonda.”

ADAMA Agricultural Solutions

Chen Lichtenstein, President and CEO of Adama, added, “This quarter saw us achieving record profits, driven by the enhancement of our portfolio while reducing costs and maintaining working capital discipline. We capitalize on launches of differentiated products as a powerful growth engine, driving our continued market growth across all key agricultural markets, and positioning us well going forward.”  

First Quarter Financial Highlights

Revenues were lower by 0.6% in constant currency terms compared to the corresponding quarter last year. Volumes grew by 3.7% in the quarter, driven in large part by launches of new products. Alongside this increase in volumes, a portion of the significant reduction in cost of sales was passed on to customers in a number of markets.

In US dollar terms, the net impact of the weakening of the Euro and the strengthening of the Brazilian Real compared to the corresponding quarter last year, as well as the lower contribution of currency hedging, saw revenues end lower by 1.2%.

Gross profit increased by a marked 5.2% to $311 million, with gross margin up by 2.2 percentage points to 36.9%, compared to the corresponding quarter last year. This significant increase resulted from a combination of the strong improvement in portfolio mix towards a differentiated offering and notable cost reduction. These factors were partially offset by the passing on to customers of a portion of these reduced product costs, as well as by the lower contribution of currency hedging.

Operating income: The higher gross profit, together with containment of operating expenses, resulted in a 5.8% growth in operating income to an all-time record high of $136 million, with an increase of 1.1 percentage points in operating margin to 16.2%.

EBITDA increased by 4.5% to reach an all-time record high of $180 million, with an increase of 1.1 percentage points in EBITDA margin to 21.3%.

Net income increased by 13.3% to an all-time record high of $114 million, with an increase of 1.8 percentage points in net income margin to 13.6%.

Working capital improved by $97 million, driven by $74 million reduction in inventory.

Cash Flow: Operating cash flow was a negative $3 million compared to a positive $8 million in the corresponding quarter last year. Due to the seasonality of activities, the Company does not generally generate positive operating cash flow in the first quarter. Free cash flow was a seasonal negative $42 million, compared to a negative $25 million in the corresponding quarter last year. The change in operating and free cash flow recorded in the quarter results primarily from the reflection in the Company’s consolidated financial reports of an $18 million non-cash write-off performed at the end of 2016 in the financial statements of a non-consolidated joint venture which is not in the Company’s core business.

Leverage: Debt levels have been significantly reduced, with balance sheet net debt of $953 million, an improvement of $248 million over the last 12 months, resulting in a net debt/ EBITDA ratio of 1.8x, compared to 2.5x this time last year.


Regional Sales Performance


Q1 2017

Q1 2016

% Change

% Change








North America





Latin America





India, Middle East & Africa





Asia Pacific











Europe: Sales were lower by 2.3% in constant currency terms, compared with the corresponding quarter last year. This is primarily due to soft demand as a result of weaker yields in 2016 and a delayed start to the agricultural season in western Europe, as well as high inventory levels in the distribution channels in a number of countries, and the passing on to customers of some of the benefit of the products’ significantly reduced cost.

Adama saw a strong performance from its broad sugar beet portfolio in all major markets in the region, capitalizing on an increase in planted areas.

In Ukraine, Adama continues to launch new products and expand its commercial reach throughout the country, while benefiting from the improvement in economic conditions.

In the UK, the Company is seeing significantly increased engagement, also through its digital platforms, including its WaterAware™ app which provides farmers with insights on safe use of crop protection around fresh water sources.

Despite a challenging economic environment, Adama grew well in Greece and further expanded its comprehensive portfolio with products like COTTONEX®, a differentiated pre-emergence herbicide.

In France a number of products, including LEGACY® DUO and PROTUGAN®, lost their registration ahead of the launch of alternative products, which resulted in lower sales.

In US dollar terms, sales in Europe were lower by 6.4% in the quarter, reflecting the weaker exchange rates and the lower contribution of currency hedging.

North America: Sales increased by 10.1% in constant currency terms, compared with the corresponding quarter last year, driven by a significant 15.6% increase in volumes of higher margin products, which was partially offset by the passing on to customers of a portion of the significant reduction in cost of sales.

The US crop protection business continued its strong momentum, building on an improved portfolio mix. Sales of Adama’s cotton portfolio increased, benefiting from growth in the cotton market with products such as COTORAN® and DIREX®, herbicides for broadleaf weeds, and DIAMOND®, a differentiated insect growth regulator. CORMORAN™, a distinctive mixture insecticide for apples and pears, was launched in the quarter, and has had an encouraging start in advance of the upcoming season. Adama is deepening its relationship with customers across the channel, through such programs as the NIMITZ University campaign in which field specialists work together with farmers to understand their nematode-related problems, finding ways to maximize their benefit from the flagship NIMITZ® product.

In addition, the Consumer and Professional Solutions business continued to grow markedly.

In US dollar terms, sales increased by 10.0% compared with the corresponding quarter last year.

Latin America: Sales were lower by 9.3% in constant currency terms, compared with the corresponding quarter last year, despite an increase in volumes, primarily in Brazil, which was offset by lower volumes in Argentina and by the passing on to customers of a portion of the significant reduction in cost of sales.

The Company saw robust sales growth in Brazil, with significant volume growth of an improved portfolio. This strong performance is particularly noteworthy when considered against the sluggish Brazilian agrochemical market. Adama saw strong sales of its comprehensive insecticide portfolio for corn, with products such as VORAZ®, a novel formulation for caterpillar control, which offers a solution in the face of increasing resistance in Bt corn. The sugarcane and pasture portfolio also performed well in Brazil, in particular ARREIO®, a new advanced selective herbicide for the control of a variety of weeds in pastures, and PREMERLIN®, a distinctive pre-emergence herbicide for sugar cane.

High levels of inventory in the distribution channels, alongside low insect and disease pressure, impacted sales and pricing in Argentina.

Adama grew and improved its business in Colombia, Ecuador, and Mexico, where its efforts to enhance its portfolio are bearing fruit. The growth in these countries was also supported by positive weather conditions.

In US dollar terms, sales increased by 1.1% compared with the corresponding quarter last year, reflecting the impact of the appreciation of the local currencies, primarily the Brazilian Real, against the US dollar.

India, Middle East & Africa: Sales were lower by 2.7% in constant currency terms, compared with the corresponding quarter last year, with a moderate increase in prices being offset by lower sales volumes, reflecting the negative ‎impact of the weather in a number of countries. 

In India, farmers were faced with unfavorable weather conditions as well as disruption to their cash availability, putting pressure on sales in this market.

Adama achieved a robust performance in South Africa, benefiting also from positive currency movements and favorable weather.

In Turkey, the Company continues to expand its commercial platform through a widening network of distributors, and also launched the ADAMA ARTI™ app for smart farm management.

In US dollar terms, sales were lower by 4.2% compared to the corresponding quarter last year.

Asia-Pacific: Sales increased by 2.5% in constant currency terms, compared with the corresponding quarter last year. This increase was driven by significant volume growth,  primarily in Australia and parts of south-east Asia which started recovering from El-Niño. This volume growth was partially offset by the passing on to the customers of a portion of the significant reduction in cost of sales.

Adama obtained several new product registrations in the region, among them COUNTDOWN™, a differentiated cereal herbicide for resistance management in Australia, NARKIS®, a unique rice herbicide in the Philippines, and ALMAGOR®, a distinctive rice fungicide in Vietnam.

In China, Adama continued the expansion of its commercial reach to four additional provinces, bringing to growers its advanced product portfolio alongside additional products from the CNAC entities.

In US dollar terms, sales increased by 4.5% compared to the corresponding quarter last year.

Further Information

All financial and legal filings, together with a presentation of the key financial highlights of the period, can be accessed through the Company’s website at

About Adama

ADAMA Agricultural Solutions Ltd. is one of the world’s leading crop protection companies. We strive to Create Simplicity in Agriculture – offering farmers effective products and services that simplify their lives and help them grow. With one of the most comprehensive and diversified portfolios of differentiated, quality products, our 5,000-strong team reaches farmers in over 100 countries, providing them with solutions to control weeds, insects and disease, and improve their yields. For more information, visit us at and follow us on Twitter® at @AdamaAgri.

Nina Zoukelman
Corporate PR Manager

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SOURCE ADAMA Agricultural Solutions Ltd.

Gemini Reports First Quarter 2017 Results

Gemini Reports First Quarter 2017 Results

Canada NewsWire

CALGARY, May 26, 2017 /CNW/ – Gemini Corporation (GKX-TSXV) (“Gemini” or the “Company”) today announced first quarter 2017 results.

“The business environment in Western Canada continues to be fiercely competitive and although requests for proposals and bidding activity has been steady, Gemini’s win rate has not been as good as we had hoped. Our first quarter was slower than expected”, said Pete Sametz, Gemini’s President and CEO.

“As we actively seek out new business opportunities and refine our estimating process, our key challenge for the remainder of the year continues to be securing new work with reasonable margins while maintaining the excellent execution and client satisfaction levels that were achieved in 2016. We have excellent employees who are working very closely with key clients to support them in this tough environment. We continue to manage our balance sheet carefully and we are very pleased to announce the closing of a $14 million credit facility for working capital needs with our new financial partner, ATB Financial.”


Three months ended
March 31,







Gross profit (loss)



Net loss



Net loss per share – basic and diluted



Adjusted EBITDA(1)




March 31,




Working capital(1)



Working capital ratio(1)



Total assets



Total equity



Total liabilities to equity ratio(1)




Non-IFRS financial measure  



  • For the three months ended March 31, 2017, Gemini recorded revenue of $6.7 million, a decline of 78% or $30.8 million from the same period in 2016. The Ponoka fabrication facility was inactive during the first quarter due to lack of significant projects, compared to the same period last year where modules were being constructed related to the Alberta Northwest Upgrader and Fort Hills projects.
  • Adjusted EBITDA for the three months ended March 31, 2017 was a loss of $2.6 million, compared to a loss of $0.8 million in the first quarter of 2016.
  • Administrative expenses for the quarter decreased by $0.9 million, a reduction of 27% compared to the same period in 2016. This reduction is a result of significant cost cutting measures and restructuring undertaken in 2016, the impact of which are now being realized.
  • Cash flow from operations was $0.5 million for the quarter. By comparison, Gemini’s operations used $3.0 million of cash during the same period in 2016.
  • Gemini ended the quarter with $1.8 million cash, up slightly from the year end cash balance of $1.6 million.
  • On March 30, 2017, the Company signed a term sheet for a two year committed senior secured revolving credit facility of up to $14 million plus an accordion feature for an additional $4 million as needed. The new credit facility was finalized and put in place effective May 25, 2017.
  • The Company completed a corporate amalgamation effective April 1, 2017. The amalgamation allows for the simplification of back office processes and realization of future cost savings and operating efficiencies.


The Company and industry adjusted to the reduced activity levels in 2016 and now Gemini is working to grow cash flow, personnel, project quality and capability, while competing fiercely for new business. The industry optimism that existed at the beginning of the year, based on improved economic activity, an increase in capital budgets and improved energy prices, has now given way to the sober realization that 2017 is recovering slower than anticipated.

Today the Company finds itself dealing with an environment where the lowest cost is the primary consideration when awarding new work. Requests for proposals and bidding activity remains high, however, the Company found it challenging to secure new work at profitable levels in the first quarter of the year despite positive feedback on our technical submissions and execution strategies. Having strengthened the balance sheet and secured a new credit facility, the Company will continue to balance the desire for work volume with a cautious risk management approach that seeks to avoid exposing the Company to financial loss by bidding unprofitable or excessively risky projects.

Gemini continues to focus on business development, rigorous estimating and controls, operational excellence and execution processes to find innovative ways to bring value to clients and secure new backlog. Interestingly, many of the proposals and requests for pricing are also associated with work not expected to commence until 2018 as clients attempt to lock in today’s low prices for next year’s work.

The Company is now expecting revenue for 2017 to be less than 2016 but expects activity to pick up in the second half of 2017 into 2018. Gemini’s fabrication shop in Ponoka has recently started to ramp up activity with key long-term clients. Environmental and maintenance services are also seeing increased activity, while construction activity levels in the Fort Saskatchewan region remain challenging.

The Company experienced a higher than normal level of attrition in the first five months of 2017 and has decided to defer the replacement of all non-essential positions until backlog levels improve. On an annualized basis, approximately $2.1 million of salary costs have been eliminated through attrition and we expect to realize further savings in the second quarter. Processes have also been established to ramp back up quickly as necessary. The Company is confident that the quality and dedication of Gemini’s personnel are best of class and our accessibility to the local workforce will allow us to bring on new personnel as required.

While the economic environment for Gemini remains highly competitive, the Company continues to have confidence in the teams’ ability to secure new work with reasonable margins while maintaining the excellent execution standards and client satisfaction that was achieved in 2016. Gemini is fortunate to have solid, trusted relationships with a group of active, growth oriented clients that we value highly. 

The 2017 Q1 Management’s Discussion and Analysis, and the Consolidated Financial Statements provide a detailed explanation of Gemini’s operating results for the three months ended March 31, 2017. Gemini’s 2017 first quarter will be filed on SEDAR at by May 26, 2017.

This news release may contain forward looking information that represents Gemini’s expectations, estimates or beliefs concerning, among other things, the timing of any recovery in oil and gas prices, the recovery of the markets for the Company’s products and services, future operating results and various components thereof, or Gemini’s future economic performance. All statements other than the statements of historical fact may be forward-looking statements. In some cases, forward-looking statements can be identified by terminology such as “may”, “will”, “should”, “expects” and similar expressions. The estimates and beliefs contained in such forward-looking statements are based on management’s assumptions relating to Gemini’s performance and competition within the sectors in which it competes, the continuation of the current regulatory and tax regimes in the jurisdictions in which Gemini operates, and necessarily involve known and unknown risks and uncertainties, including risks and assumptions relating to client service demand, field service costs, labour rates and other factors that may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted or suggested. Gemini does not undertake to update any forward-looking information in this document whether as to new information, future events or otherwise.

This news release refers to certain Non-IFRS financial measures that are not determined in accordance with International Financial Reporting Standards (“IFRS”). The measures used are “backlog”, “working capital”, “working capital ratio” and “adjusted EBITDA”. These measures are used by our management to assist in making operating decisions and assessing performance. While we calculate these measures consistently from period to period, they likely will not be directly comparable to similar measures used by other companies because they do not have standardized meanings prescribed by IFRS. See the “Non-IFRS Measures” section of the March 31, 2017 MD&A. Investors are encouraged to evaluate each adjustment and the reasons Gemini considers it appropriate for supplemental analysis. Investors are cautioned, however, that these measures should not be construed as an alternative to net earnings determined in accordance with IFRS as an indication of Gemini’s performance. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.

Gemini operates as an integrated project solutions company focused on energy and industrial facilities. Gemini offers services on either a stand-alone basis or in a combination, integrated to provide our clients with a single point of accountability. The Company will be celebrating its 35th anniversary in 2017.

Through an all-in commitment from every individual in the Company, Gemini is determined to change the client perspective of how project services should be delivered. The Company is uniquely qualified to provide a full spectrum of modular and integrated project solutions, leveraging a philosophy and approach that directly aligns with its clients’ business objectives.

The Company is capable of servicing its clients through the full life cycle of their assets; from asset acquisition, environmental and regulatory support, engineering, fabrication, construction, maintenance, turnarounds, de-commissioning, reclamation and remediation. Gemini provides full project management to integrate any or all of these services. The Company’s principal target markets are oil and gas, heavy oil, oil sands, midstream and pipeline facilities, hydrocarbon processing, power and other industrials.

The Company operates in western Canada and is headquartered in Calgary with offices in Ponoka, Fort Saskatchewan and Fort St. John.

Shares of Gemini trade on the TSX Venture Exchange under the symbol “GKX”. For more information about the Company and its services, go to

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

SOURCE Gemini Corporation

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Ironhorse Announces Q1 2017 Financial and Operating Results

Ironhorse Announces Q1 2017 Financial and Operating Results

Canada NewsWire

CALGARY, May 26, 2017 /CNW/ - Ironhorse Oil & Gas Inc. (“Ironhorse” or the “Company”) (TSX-V: IOG) announces its financial and operating results for the three months ended March 31, 2017.

Financial and Operation Summary

The Company’s reported production has decreased 19% to 164 boe/d in the first quarter of 2017 from 202 boe/d produced in the fourth quarter of 2016.  The decrease in production is primarily attributed to the Nisku L2L Pool shut in of production for 10 days in March due to a third party compressor turnaround which halted the blend gas supply required to produce from the pool.

The Company realized a net loss of $33,000 for the first quarter, a 95% or $667,000 reduction from the $700,000 net loss in Q4 2016 which included a $797,000 impairment charge. 

Despite lower production, Q1 2017 operating netbacks improved 21% to $271,000 compared to $224,000 for Q4 2016 benefiting from 8% higher realized commodity prices on a boe basis and reduced operating costs which included equalization credits for 2015 fee adjustments on third party compression recorded in the current quarter. 

Quarterly funds from operations remained positive for the third consecutive quarter improving 27% to $180,000 compared to $142,000 for Q4 2016 as a result of higher operating netbacks. The Company continues to be well positioned financially with a positive working capital position of $3.0 million at March 31, 2017.

Combined production from the Pembina Nisku light oil property averaged 1,180 boe/d gross (184 boe/d net) during April 2017. Net production is projected to average in the range of 140 boe/d to 170 boe/d, as the pool operator manages the reservoir performance and optimizes the pool production and water injection requirements.


For three months ended

March 31,

December 31,

March 31,

($ thousands except per share & unit amounts)





Petroleum and natural gas revenues (1)




Funds from operations (2)




Per share – basic and diluted



Net loss




Per share – basic and diluted



Capital expenditures (3)




Light Oil & NGL (bbl/d)




Gas (mcf/d)




Total (boe/d)




Petroleum and natural gas revenues ($/boe)




Royalties ($/boe)




Operating expenses ($/boe)




Operating netback ($/boe)





Petroleum and natural gas revenues are before royalty expense.


Funds from operations and net debt are non-GAAP measures as defined in the Advisory section of the MD&A.


Capital expenditures are before acquisitions and dispositions.


Additional Information

Ironhorse’s complete results for the three months ended March 31, 2017, including unaudited condensed financial statements and the management’s discussion and analysis are available on SEDAR and the Company’s web site at

About Ironhorse:

Ironhorse Oil & Gas Inc. is a Calgary-based junior oil and natural gas production company trading on the TSX Venture Exchange under the symbol “IOG.”

Forward-looking statements:

Statements throughout this release that are not historical facts may be considered to be “forward looking statements.” These forward looking statements sometimes include words to the effect that management believes or expects a stated condition or result. All estimates and statements that describe the Company’s objectives, goals, or future plans, including management’s assessment of future plans and operations, drilling plans and timing thereof, expected production rates and additions and the expected levels of activities may constitute forward-looking statements under applicable securities laws and necessarily involve risks including, without limitation, risks associated with oil and gas exploration, development, exploitation, production, marketing and transportation, volatility of commodity prices, imprecision of reserve estimates, environmental risks, competition from other producers, incorrect assessment of the value of acquisitions, failure to complete and/or realize the anticipated benefits of acquisitions, delays resulting from or inability to obtain required regulatory approvals and ability to access sufficient capital from internal and external sources and changes in the regulatory and taxation environment. As a consequence, the Company’s actual results may differ materially from those expressed in, or implied by, the forward-looking statements. Forward-looking statements or information are based on a number of factors and assumptions which have been used to develop such statements and information but which may prove to be incorrect. Although the Company believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because the Company can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified in this document, assumptions have been made regarding, among other things: the ability of the Company to obtain equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects which the Company has an interest in to operate the field in a safe, efficient and effective manor; pipeline restrictions; and field production rates and decline rates. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect the Company’s operations and financial results are included elsewhere herein and in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ( Furthermore, the forward-looking statements contained in this release are made as at the date of this release and Ironhorse assumes no obligation to update or revise any forward-looking statements to reflect new events or circumstances, except as required by applicable laws.

Boe Conversion – Certain natural gas volumes have been converted to barrels of oil equivalent (“boe”) whereby six thousand cubic feet (mcf) of natural gas is equal to one barrel (bbl) of oil. This conversion ratio is based on an energy equivalency conversion applicable at the burner tip and does not represent a value equivalency at the wellhead.

“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”

SOURCE Ironhorse Oil & Gas Inc.

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