Bli medlem
Bli medlem

Du är här

2017-02-09

Yara International ASA: Yara reports strong operational performance but weaker margins

Oslo, 9 February 2017: Yara International ASA delivered weaker fourth-quarter
results compared with a year earlier. EBITDA excluding special items was 29%
lower, as higher deliveries and lower energy costs were more than offset by
lower fertilizer prices. Yara's board will propose to the Annual General
Meeting a dividend payment of NOK 10 per share for 2016.

"Yara reports a weaker result than a year earlier, reflecting lower fertilizer
prices as the global nitrogen price floor was tested during the quarter. But
our operational performance improved significantly, with fertilizer sales and
production up 15% and 11% respectively," said Svein Tore Holsether, President
and Chief Executive Officer of Yara.

"The whole Yara organization is working hard to further improve operations, to
deliver on the Yara improvement program which we have announced earlier. The
program has already delivered approximately USD 25 million of EBITDA
improvement in 2016, and will deliver at least USD 500 million of annual
EBITDA improvement within 2020," said Holsether.

Yara reports fourth-quarter net income after non-controlling interests of
negative NOK 333 million (NOK 1.22 per share), compared with a positive NOK
434 million (NOK 1.58 per share) a year earlier. Excluding net foreign
exchange loss and special items, the result was NOK 1.66 per share compared
with NOK 3.97 per share in fourth quarter 2015. Fourth-quarter EBITDA
excluding special items was NOK 2,474 million compared with NOK 3,508 million
a year earlier.

Deliveries of Yara-produced fertilizer including blends were 15% higher than
in fourth quarter 2015. In addition, improved reliability and fewer
turnarounds in Yara's production plants have enabled higher deliveries
compared with a year earlier.

Adjusted for the divestment of the CO2business, Industrial deliveries were 13%
higher than a year earlier with growth for all products.

Yara's margins were significantly lower compared with a year earlier for both
commodity upgrading margins and nitrate premiums. Yara's average realized
urea and nitrate prices decreased 25% and 28% respectively, while realized
NPK prices decreased by around 10%. Yara's average global gas costs were 17%
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, higher nitrogen prices globally have contributed to a positive
price and volume momentum for nitrates, and Yara first-quarter European
nitrate deliveries are ahead of the same period last year.

As communicated earlier, Yara has established a corporate program to drive and
coordinate existing and new improvement initiatives. The Yara Improvement
program will deliver at least USD 500 million of annual EBITDA improvement by
2020, of which an estimated USD 150 million will be realized in 2017.

Yara is executing significant expansion activity, and based on today's market
prices these are expected to generate approximately NOK 6 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 9 February at 09:30 CET:
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 more than 16,000 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.

4Q 2016 Presentation
http://hugin.info/134793/R/2077098/781294.pdf
4Q 2016 Report
http://hugin.info/134793/R/2077098/781293.pdf

---------------------------------------
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

Författare Hugin

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.