Yara reports strong production performance but lower commodity fertilizer margins
(Thomson Reuters ONE) -
Oslo, 19 October 2017: Yara International ASA delivered weaker third-quarter
results compared with a year earlier. Net income after non-controlling interests
was NOK 709 million (NOK 2.60 per share), compared with NOK 821 million (NOK
3.00 per share) a year earlier. Excluding net foreign exchange gain and special
items, the result was NOK 3.21 per share compared with NOK 3.43 per share in
third quarter 2016.
Third-quarter EBITDA excluding special items was NOK 2,728 million, down 8%
compared with a year earlier as higher energy costs and a weaker US dollar more
than offset the impact of higher deliveries.
"Yara reports a strong production performance for the quarter, with several
production records and the Yara Improvement Program delivering ahead of
schedule," said Svein Tore Holsether, President and Chief Executive Officer of
Yara.
"Our financial results are weaker than a year earlier due to lower commodity
fertilizer margins. Although prices picked up towards the end of the quarter, we
continue to see the market as fundamentally supply-driven, and therefore remain
focused on strengthening our own operations," said Holsether.
Total fertilizer deliveries were 6% higher than in third quarter 2016 driven by
higher urea deliveries in North America and continued growth in Brazil.
Industrial deliveries were 6% higher than a year earlier. Yara's production
system performed well during the quarter, with ammonia and finished fertilizer
production respectively 7% and 8% higher than a year earlier. Yara's average
realized nitrate prices increased 10% while realized NPK and urea prices were
respectively 3% and 2% 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, third-quarter nitrogen industry deliveries
were 1% higher than a year earlier. Yara saw strong order-taking during the
quarter, triggered by the tighter situation globally for nitrogen, and as a
result Yara enters fourth quarter with a longer nitrate order book than normal.
The time lag between market prices and realized prices on Yara's fourth-quarter
deliveries is expected to be approximately 3 months. 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 430 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 210 million has been realized as
of third quarter 2017.
Link to report and presentation:
http://yara.com/investor_relations/quarterly_report/
Link to webcast 19 October 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.
3Q 2017 Presentation:
http://hugin.info/134793/R/2142865/820941.pdf
3Q 2017 Report:
http://hugin.info/134793/R/2142865/820940.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: 19.10.2017 - 08:00 Uhr
Sprache: Deutsch
News-ID 564327
Anzahl Zeichen: 5141
contact information:
Town:
Oslo
Kategorie:
Business News
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