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2016-10-21

Yara International ASA: Yara reports strong deliveries but lower margins

Oslo, 21 October 2016:
Yara International ASA delivered weaker third-quarter results compared with a
year earlier. Underlying EBITDA was 35% lower, as weaker fertilizer prices
were only partly offset by
higher deliveries of Yara-produced products, lower energy cost and currency
translation gains.
"Yara reports a weaker result than a year earlier, reflecting supply-driven
prices for fertilizer globally. But although production margins were
significantly lower, our Crop Nutrition and Industrial earnings were broadly
stable, demonstrating the strength and resilience of Yara's integrated
business model," said Svein Tore Holsether, President and Chief Executive
Officer of Yara.

"The over-supply situation in our industry is expected to last for some time,
underlining the need for the Yara Improvement Program which we have announced
earlier. Parts of the program have entered the implementation phase, and we
are confident we will deliver at least USD 500 million of annual EBITDA
improvement by 2020," said Holsether.

Yara reports third-quarter net income after non-controlling interests of NOK
821 million (NOK 3.00 per share), compared with NOK 4,004 million (NOK 14.56
per share) a year earlier. Excluding net foreign exchange loss and special
items, the result was NOK 3.46 per share compared with NOK 7.41 per share in
third quarter 2015. Third-quarter EBITDA excluding special items was NOK
2,968 million compared with NOK 4,614 million a year earlier.

Global Yara fertilizer deliveries were 4% higher than in third quarter 2015,
with deliveries of Yara-produced products up 10%, driven by continued strong
growth in Brazil and higher deliveries of compound NPK in all regions.

In Europe, fertilizer deliveries were 1% higher than a year earlier, with
deliveries of Yara-produced nitrates marginally lower than a year ago while
compound NPK deliveries were up 16%. Adjusting for the divestment of Yara's
CO2business (effective 1 June) Industrial segment deliveries were up 9%.

Yara's margins declined compared with third quarter last year, as sales prices
fell more than input costs. Yara's average realized urea and nitrate prices
decreased around 25%, while compound NPK premiums increased compared with a
year ago as realized NPK prices decreased only 15%. Yara's average global gas
costs were 25% lower than a year ago.
The global farm margin outlook and incentives for fertilizer application
remains supportive overall, and while grain prices are lower, prices for
several key crops like sugar, coffee and oils are higher than a year ago.

In Europe, pre-buying incentives are improved given significantly lower
nitrogen prices and premiums, although some markets are impacted financially
by poor harvests. In Brazil, fourth-quarter industry deliveries are expected
to be broadly in line with a year earlier, but Yara sees continued growth
longer term.

Yara is executing significant expansion activity, and based on today's market
prices these are expected to generate approximately NOK 5 per share of
incremental earnings by 2020 when fully operational.

Link to report and presentation:
http://www.yara.com/investor_relations/quarterly_report/index.aspx
Link to webcast 21 October 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

Esben Tuman, Media Relations

Office: (+47) 24 15 70 26
Cellular: (+47) 90 50 84 00

E-mail:esben.tuman@yara.com

About Yara
Yara's knowledge, products and solutions grow farmers', distributors' and
industrial customers' businesses profitably and responsibly, while 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.

3Q 2016 Report
http://hugin.info/134793/R/2050406/766995.pdf
3Q 2016 Presentation
http://hugin.info/134793/R/2050406/766980.pdf

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This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq 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

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