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2016-02-11

Yara International ASA: Yara reports weaker fourth-quarter results reflecting lower margins and deliveries

Oslo, 11 February 2016: Yara International ASA delivered weaker fourth-quarter
results compared with a year earlier, with EBITDA excluding special items 24%
lower. Positive currency and energy gains were more than offset by lower
sales volumes and declining prices in the quarter. Yara's board will propose
to the Annual General Meeting a dividend payment of NOK 15 per share for
2015.
"Yara reports weaker results than a year ago, reflecting a tougher market
environment with declining prices, but also an unsatisfactory operational
performance with significant downtime in several of our plants," said Svein
Tore Holsether, President and Chief Executive Officer of Yara.
"However, I am pleased to see continued growth in Brazil, especially for the
premium product deliveries, as well as another strong result from the
Industrial segment," said Svein Tore Holsether.

Yara reports fourth-quarter net income after non-controlling interests of NOK
434 million (NOK 1.58 per share), compared with NOK 1,860 million (NOK 6.74
per share) a year earlier. Excluding net foreign exchange gain and special
items, the result was NOK 3.97 per share compared with NOK 8.17 per share in
fourth quarter 2014. Fourth-quarter EBITDA excluding special items was NOK
3,508 million compared with NOK 4,528 million a year earlier.

Global Yara fertilizer deliveries were 7% lower compared to fourth quarter
2014. Excluding the Galvani acquisition in Brazil, total deliveries were 9%
lower primarily driven by lower urea and nitrate sales. The decrease in
deliveries reflects negative price trends in the quarter for all nutrient
commodity prices, as well as weaker farm economics in key producing regions.
In Europe, total fertilizer deliveries were 8% lower than last year, with
Yara-produced deliveries 6% down compared with a year ago. While compound NPK
sales increased by 7%, nitrate and urea sales decreased by more than 10%
compared with a year ago. Industrial sales volumes were in line with fourth
quarter 2014.
Yara's margins declined compared to fourth quarter last year, as realized
prices fell more than input costs. Yara's average realized urea prices
decreased around 20%, nitrate prices were 15% lower, and compound NPK prices
decreased on average 13% compared with fourth quarter 2014. Yara's average
global gas costs were 20% lower than a year ago.
The global farm margin outlook and incentives for fertilizer application
remain supportive overall, especially for key crop exporting regions such as
Europe and Latin America where local currencies have depreciated relative to
the US dollar. In Europe, season-to-date nitrogen industry deliveries are 5%
behind a year earlier, and Yara expects a catch-up in deliveries during first
half of 2016. In Brazil, agricultural competitiveness has increased with
other crop exporting regions, but delayed purchasing due to lower credit
availability is likely to impact fertilizer demand also going forward. Based
on current forward markets for oil products and natural gas, Yara's European
energy costs for the next two quarters are expected to be approximately NOK 2
billion lower than a year earlier.
Link to report and presentation:

http://www.yara.com/investor_relations/quarterly_report/index.aspx
Link to webcast 11 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' 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 more than 12,000 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 2015 Report
http://hugin.info/134793/R/1985332/728080.pdf
4Q 2015 Presentation
http://hugin.info/134793/R/1985332/728135.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#1985332

Författare WKR

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