Oslo, 8 February 2018: Yara International ASA delivered improved fourth-quarter results compared with a year earlier. Net income after non-controlling interests was NOK 846 million (NOK 3.10 per share), compared with a net loss of NOK 333 million (NOK 1.22 per share) a year earlier. Excluding net foreign exchange gain and special items, the result was NOK 3.88 per share compared with a net loss of NOK 1.58 per share in fourth quarter 2016.
Fourth-quarter EBITDA excluding special items was NOK 2,845 million, up 15% compared with a year earlier, primarily reflecting higher margins.
“Yara reports improved results with higher production, and the Yara Improvement Program ahead of schedule,” said Svein Tore Holsether, President and Chief Executive Officer of Yara.
“Our financial results are better, mainly due to higher market prices. However, fertilizer markets remain fundamentally supply-driven, and we remain focused on strengthening our own operations,” said Holsether.
Total fertilizer deliveries were 3% lower compared to a year earlier, driven by lower deliveries in North America, Brazil and Europe. Industrial deliveries were 3% higher than a year ago, reflecting continued growth for AdBlue. Yara’s production increased, with ammonia and finished fertilizer production respectively 5% and 1% higher than a year earlier. Yara’s average realized nitrate prices increased 20% while realized NPK and urea prices were respectively 6% and 13% higher than a year ago.
The global farm margin outlook and incentives for fertilizer application remains supportive overall, and the price trend for cereals and meat has been positive for the past year. In Europe, season-to-date nitrogen industry deliveries are in line with a year earlier, while producer stocks are below the 5-year average. So far in the first quarter Yara’s European nitrate deliveries are slightly behind the same period a year earlier. 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 525 million higher than a year earlier.
The Yara Improvement Program is on track to reach at least USD 500 million of annual EBITDA improvement by 2020, of which USD 240 million has been realized as of fourth quarter 2017.