Yara’s objective is to pay out 40–45% of net income in the form of dividends and share buy-backs. Within this objective, a minimum 30% of net income shall be paid in the form of dividends, while share buy-backs make up the balance and are deployed with greater flexibility.
The Board proposes a dividend of NOK 13 per share, an 86% increase from 2011, totaling a payment of NOK 3,647 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 results in a net reduction in equity of NOK 113 million. Distributable equity in the parent company as of 31 December 2012 was NOK 2,781 million after the proposed dividend.
Yara executes share buy-back programs as an integral part of its shareholder policy. In 2012 Yara bought back and redeemed shares for a total of NOK 1,271 million. The Board intends to propose to the Annual General Meeting a new buy-back program along the lines of the existing one.
In total, Yara paid out NOK 3,269 million in dividends and share buy-backs in 2012, representing 27% of net income in 2011. The proposed 2012 dividend represents 34% of net income.