Investor Relations

2009: Exploring market opportunities

The global economic turmoil which made its mark in the end of 2008 intensified during 2009, strongly affecting Yara's operations and results. However, despite the non-satisfactory market developments in 2009, the long-term market outlook is favorable.
Yara's market opportunities

Yara’s 2009 net income after non-controlling interests was NOK 3,782 million, a 54 percent decline from 2008. Corresponding earnings per share were NOK 13.08 compared to NOK 28.27 in 2008. EBITDA was down 69 percent compared to 2008, primarily reflecting significantly lower prices and margins.

Due to lower prices and margins, full-year results declined significantly from 2008. In comparison, higher fertilizer prices in 2008 contributed to the company achieving its best results ever, despite a decline in volumes compared to 2007. In 2009, global fertilizer sales decreased another two percent. European volumes were down eleven percent, while volumes outside Europe were up eight percent from 2008. Average realized nitrate prices were approximately 50 percent lower than in 2008; realized urea prices declined approximately 40 percent.

Net interest-bearing debt decreased by NOK 8,567 million during 2009, ending at NOK 16,227 million.

By segment

The Downstream segment delivered an EBITDA of NOK 963 million, a weak result as earnings were impacted by reduced volumes, lower market prices and position losses from declining prices.

The Industrial segment delivered strong results with an EBITDA of NOK 1,248 million, excluding special items, primarily reflecting higher margins from contracts entered into earlier.

The Upstream segment delivered an EBITDA of NOK 4,013 million, a weak financial result impacted primarily by low margins for all finished fertilizer products and lower sales of NPK in particular.

Like other companies, Yara’s operations were affected by the market turmoil in the 08/09 season. The financial crisis contributed to a sharp drop in demand which resulted in an 18 percent reduction in the company’s fertilizer sales in the first half of 2009.

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