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2016-07-21

Yara International ASA: Yara reports strong deliveries and production, but lower margins

Oslo,
21 July 2016:
Yara International ASA delivered weaker underlying second-quarter results
compared with a year earlier. EBITDA excluding special items was 22% lower,
as weaker fertilizer prices were only partly offset by positive energy and
currency translation gains.
"Yara reports strong deliveries and production, but margins declined due to
lower fertilizer prices globally. The challenging market situation underlines
the need to further strengthen our operations," said Svein Tore Holsether,
President and Chief Executive Officer of Yara.
"As communicated earlier we are establishing a program to drive and coordinate
existing and new improvement initiatives. I am pleased to announce that we
have so far identified at least USD 500 million of annual improvement
potential," said Svein Tore Holsether.

Yara reports second-quarter net income after non-controlling interests of NOK
3,072 million (NOK 11.23 per share), compared with NOK 2,916 million (NOK
10.59 per share) a year earlier. Excluding net foreign exchange gain and
special items, the result was NOK 6.37 per share compared with NOK 9.58 per
share in second quarter 2015. Second-quarter EBITDA excluding special items
was NOK 3,958 million compared with NOK 5,055 million a year earlier. The
reported EBITDA for second quarter includes a gain of NOK 1,553 million from
divesting Yara's European CO2business.
Global Yara fertilizer deliveries were in line with second quarter 2015, but
with deliveries of Yara-produced products 8% higher than a year ago, mainly
driven by higher nitrate deliveries in Europe.

In Europe, fertilizer deliveries were 4% higher than a year earlier, with
deliveries of Yara-produced nitrates and NPK 14% and 3% higher respectively.
Adjusting for the divestment of the CO2business (effective from 1 June)
Industrial segment sales volumes were in line with second quarter 2015.

Yara's margins declined compared to second quarter last year, as sales prices
fell more than input costs. Yara's average realized urea and nitrate prices
decreased around 25%. NPK premiums measured in absolute terms were in line
with second quarter last year. Yara's average global gas costs were 33% lower
than a year ago.
The global farm margin outlook and incentives for fertilizer application
remain supportive overall, also due to lower prices for fertilizers and other
agricultural inputs. In Europe, pre-buying incentives are improved given
significantly lower nitrogen prices, and Yara enters the third quarter with a
stronger order book than a year ago. Yara sees continued fertilizer demand
growth in Brazil, where improved agricultural export competitiveness and
credit availability have positively impacted fertilizer demand in 2016. Based
on current forward markets for oil products and natural gas, Yara's spot
energy costs for the next two quarters are expected to be approximately NOK
900 million lower than a year earlier.
Link to report and presentation:

http://www.yara.com/investor_relations/quarterly_report/index.aspx
Link to webcast 21 July at 09:30 CEST:

http://www.yara.com/investor_relations/financial_webcasts/index.aspx

Contact

Thor Giæver, Investor Relations

Office: (+47) 24 15 72 95
Cellular: (+47) 48 07 53 56

E-mail:thor.giaver@yara.com

Kristin Nordal, Media Relations

Mobile: (+47) 900 15 550
E-mail:kristin.nordal@yara.com

About Yara
Yara's knowledge, products and solutions grow farmers', distributors' and
industrial customers' businesses profitably and responsibly, while nurturing
and protecting the earth's resources, food and environment.

Our fertilizers, crop nutrition programs and technologies increase yields,
improve product quality and reduce the environmental impact of agricultural
practices. Our industrial and environmental solutions improve air quality by
reducing emissions from industry and transportation, and serve as key
ingredients in the production of a wide range of goods. We foster a culture
that promotes the safety of our employees, contractors and societies.

Founded in 1905 to solve emerging famine in Europe, today, Yara has a
worldwide presence, with close to 13,000 employees and sales to more than 150
countries.

www.yara.com
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.

2Q 2016 Presentation
http://hugin.info/134793/R/2029756/754864.pdf
2Q 2016 Report
http://hugin.info/134793/R/2029756/754878.pdf

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This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Yara International ASA via Globenewswire

HUG#2029756

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