Yara International ASA reports record third quarter results with strong growth in Brazil and increased market share in Europe. Fertilizer (urea) prices increased to historically high levels towards the end of the quarter. The energy contract for the Sluiskil plant was renegotiated at the close of the quarter.
Yara reports for the third quarter a net income after minority interest of NOK 745 million (NOK 2.33 per share), compared with NOK 420 million (NOK 1.31 per share) in the third quarter last year. Third quarter operating income was NOK 794 million (NOK 431 million), while EBITDA for the same quarter was NOK 1.380 million (NOK 947 million).
“This is the best third quarter ever for our business. During this quarter urea prices increased to historically high levels, while European nitrate prices showed a more modest increase,” says Thorleif Enger, President and CEO of Yara International ASA. “It is particularly satisfactory to see the continued growth in Brazil and a recapture of market share in Europe previously lost to imports,” says Mr. Enger.
All three business segments at Yara performed well during the third quarter. The Upstream business segment (global plants) substantially improved its EBITDA compared with the same quarter last year with increased fertilizer prices and stable energy cost. The production continued at a high level. The Downstream business segment (marketing and distribution) also improved its EBITDA compared with the same quarter last year with record volumes for its Brazilian operations. The volumes also increased in Europe at the expense of imports. The Industrial segment experienced volume growth in nitrogen chemicals but showed reduced margins due to a high ammonia price. EBITDA was in line with the same quarter last year.
Yara and the Norwegian State has signed an agreement which makes it possible for Yara to execute the announced buy-back program without affecting the State ownership share in Yara. The intention is to cancel the bought back shares by capital reduction.
The quarterly figures reflect official accounts while the historical figures are pro forma since the demerger from Norsk Hydro took place on 25 March 2004.