Yara reports strong operational performance but weaker margins
(Thomson Reuters ONE) -
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 CO(2) business, 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(at)yara.com
Esben Tuman, Media Relations
Office: (+47) 24 15 70 26
Cellular: (+47) 90 50 84 00
E-mail: esben.tuman(at)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
Unternehmensinformation / Kurzprofil:
Datum: 09.02.2017 - 08:02 Uhr
Sprache: Deutsch
News-ID 523017
Anzahl Zeichen: 5757
contact information:
Town:
Oslo
Kategorie:
Business News
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