Investor Relations

Dividends and buy-backs 2010

Yara expects to return 40–45 percent of net income to its shareholders, measured as the sum of dividends and share buy-backs, averaged over the business cycle.

As long as Yara can maintain profitability at the attractive level achieved since the IPO, a dividend level that restricts Yara’s growth will not be desirable. Yara’s dividend policy is to pay out a minimum 30 percent of net income as an average over the business cycle. Yara believes it will be beneficial for shareholders for the Company to strive for a gradual increase and predictability in the absolute dividend level over time, independent of the business cycle.


Dividends 2010 View graph

The Board proposes a dividend of NOK 5.50 per share, a 22 percent increase from last year, totaling a payment of NOK 1,584 million based on outstanding shares at the date this financial statement was authorized for issue. Combined with the positive result in Yara International ASA and other effects, this means an increase in equity of NOK 3,008 million. Distributable equity in the parent company, as of Dec. 31, 2010, was NOK 4,758 million after proposed dividend.

Yara will use share buy-back programs when certain conditions are met. Share buy-backs are more flexible than dividends. For most shareholders, buy-backs also provide tax advantages compared to dividends. In 2010, Yara bought back 450,000 shares for a total of NOK 115 million.

In total, Yara paid out NOK 1,415 million in 2010 in dividends and share buy-backs, representing 37 percent of net income in 2009. The proposed 2010 dividend represents 18 percent of net income and 27 percent of net income excluding net foreign exchange gains and special items.


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