Yara reports second quarter results reflecting lower commodity margins
(Thomson Reuters ONE) -
Oslo, 18 July 2017: Yara International ASA delivered weaker second-quarter
results compared with a year earlier. Net income after non-controlling interests
was NOK 699 million (NOK 2.56 per share), compared with NOK 3,072 million (NOK
11.23 per share) a year earlier. Excluding net foreign exchange gain and special
items, the result was NOK 2.90 per share compared with NOK 6.29 per share in
second quarter 2016.
Second-quarter EBITDA excluding special items was NOK 2,873 million, down 27%
compared with a year earlier, driven mainly by higher energy costs and lower
realized prices.
"Yara reports a weaker result than a year earlier, primarily reflecting lower
commodity margins," said Svein Tore Holsether, President and Chief Executive
Officer of Yara.
"Our industry is facing strong over-supply of urea and other commodity nitrogen
products, and we have expected this development for some time. We are therefore
focused on improving our operations, and making growth investments primarily
within premium fertilizer and industrial applications where margins are more
stable. The Yara Improvement Program and growth pipeline, both of which are on
track to deliver minimum NOK 17 per share of annual earnings improvements within
2020," said Holsether.
Total fertilizer deliveries were 3% lower than in second quarter 2016. Adjusted
for the divestment of Yara's CO(2) business last year, Industrial deliveries
were 8% higher than a year earlier.
Margins in the quarter were impacted by both higher gas costs and lower realized
prices. Yara's average realized fertilizer urea prices decreased 7% while
realized nitrate and NPK prices were 1% and 5% lower respectively than a year
ago. Yara's average global gas costs were 24% higher than a year ago.
The global farm margin outlook and incentives for fertilizer application remains
supportive overall, and the price trend for cereal, meat and dairy has been
positive year to date. In Europe, Yara is seeing a normal rate of order taking
at the start of the new season, at higher prices than a year ago, and expects
roughly stable European nitrogen consumption for the 2017/18 season. 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 225 million
higher than a year earlier.
Link to report and presentation:
http://yara.com/investor_relations/quarterly_report/
Link to webcast 18 July 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.
2Q 2017 Report:
http://hugin.info/134793/R/2120953/808134.pdf
2Q 2017 Presentation:
http://hugin.info/134793/R/2120953/808099.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: 18.07.2017 - 08:13 Uhr
Sprache: Deutsch
News-ID 552708
Anzahl Zeichen: 4812
contact information:
Town:
Oslo
Kategorie:
Business News
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