Yara reports increased deliveries but weaker margins
(Thomson Reuters ONE) -
Oslo, 26 April 2017: Yara International ASA delivered weaker first-quarter
results compared with a year earlier. Net income after non-controlling interests
was NOK 1,692 million (NOK 6.19 per share), compared with NOK 2,800 million (NOK
10.22 per share) a year earlier. Excluding net foreign exchange gain and special
items, the result was NOK 5.01 per share compared with NOK 9.16 per share in
first quarter 2016.
First-quarter EBITDA excluding special items was NOK 3,335 million, down 34%
compared with a year earlier, driven primarily by lower realized fertilizer
prices and higher energy costs.
"Yara reports a weaker result than a year earlier, reflecting lower fertilizer
prices and margins. However, we delivered increased sales volumes, both for
fertilizer and Industrial products," said Svein Tore Holsether, President and
Chief Executive Officer of Yara.
"Our ammonia production was lower, underlining the need for our on-going efforts
to improve operations. The Yara Improvement Program is on track and has already
delivered 90 of the targeted 500 million US dollars of annual earnings
improvement within 2020," said Holsether.
Deliveries of Yara-produced fertilizer including blends were 3% higher than in
first quarter 2016. The growth was mainly driven by higher nitrates and compound
NPK deliveries in Europe and higher compound NPK deliveries in China and
Thailand, two of Yara's most important NPK markets outside Europe.
Adjusted for the divestment of Yara's CO(2) business last year, Industrial
deliveries were 17% higher than a year earlier, with growth for all products.
Lower realized prices and higher gas costs impacted both commodity upgrade
margins and premiums for fertilizer and industrial products compared with a year
earlier. Yara's average realized urea and nitrate prices decreased 5% and 15%
respectively, while realized NPK prices decreased by around 10%. Yara's average
global gas costs were 28% higher than a year ago.
The global farm margin outlook and incentives for fertilizer application remain
supportive overall, and while grain prices are stable, prices for several key
crops like sugar, coffee, oils and dairy products are higher than a year ago.
In Europe, first quarter nitrogen industry deliveries were 6% higher than a year
earlier, but with a slower trend in March as weather-related delays and lower
global nitrogen prices delayed purchasing. However, Yara expects normal nitrogen
consumption for the European spring season overall.
Yara has established a corporate program to drive and coordinate existing and
new improvement initiatives, which 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.
To meet growing demand for premium products in particular, Yara is expanding
capacity in several plants, with most of the projects due to be completed during
2017 and 2018. Applying current market prices, these projects are expected to
generate approximately USD 600 million of annual EBITDA improvement (NOK 6 net
income per share) by 2020 when fully operational.
Link to report and presentation:
http://yara.com/investor_relations/quarterly_report/
Link to webcast 26 April at 09:30 CEST:
http://yara.com/investor_relations/financial_webcasts/
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 close to 15,000 employees and sales to about 160 countries.
www.yara.com
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
1Q 2017 Report:
http://hugin.info/134793/R/2098778/795041.pdf
1Q 2017 Presentation:
http://hugin.info/134793/R/2098778/795067.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: 26.04.2017 - 08:00 Uhr
Sprache: Deutsch
News-ID 538378
Anzahl Zeichen: 5668
contact information:
Town:
Oslo
Kategorie:
Business News
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