In 2012 Yara again delivered solid financial results, with net income after non-controlling interests at NOK 10,602 million. Although down 12% from the 2011 result, the latter was positively impacted by special items, primarily the sale of Yara’s share in Rossosh and the part-divestment of the company’s share in Yara Praxair.
2012 earnings per share were NOK 37.49, compared with NOK 41.99 in 2011.Yara’s after-tax measure for return on capital, CROGI, stood at 17.3% compared with a target of minimum 10% average over the business cycle, and down from 20.9% in 2011. Operating income was NOK 11,166 million, down from NOK 13,240 million in 2011, while EBITDA was NOK 16,977 million, compared with NOK 18,163 million in 2011. Yara’s revenue and other income was NOK 84.5 billion in 2012, up from 80.4 billion in 2011.
Excluding special items, Yara’s 2012 results improved compared with 2011, as higher sales and production volumes offset the impact of lower fertilizer prices. Overall fertilizer deliveries were 6% higher than in 2011, with sales outside Europe up 9%. Average realized urea prices were up 5%, while nitrate and NPK prices decreased 3% and 1% respectively.
Net cash from operating activities was NOK 13,233 million, reflecting strong earnings based on a continued strong market situation for Yara’s products. Net cash from operating activities in 2011 was NOK 7,363 million. Net cash used for investing activities in 2012 was NOK 3,955 million, primarily reflecting planned maintenance, continuity and organic growth investment activity.
Yara strengthened its financial position in 2012. The debt/equity ratio decreased from 0.12 to 0.02, primarily due to strong earnings. Net interest-bearing debt at year’s end was NOK 954 million, while total assets were NOK 81,258 million. Total equity attributable to shareholders of the parent company as of 31 December 2012 amounted to NOK 48,163 million. At the end of the year Yara had NOK 9,941 million in cash and cash equivalents and approximately NOK 8,677 million in undrawn committed bank facilities. We consider the company’s cash and financial position to be strong.
In the opinion of the Board of Directors, the consolidated financial statements provide a true and fair view of the group’s financial performance during 2012 and financial position at 31 December 2012. According to section 3–3 of the Norwegian Accounting Act, we confirm that the consolidated financial statements and the financial statements of the parent company have been prepared based on the going concern assumption, and that it is appropriate to make that assumption.
The Downstream segment delivered an EBITDA of NOK 3,910 million, reflecting increased sales volumes and healthy margins.
The Industrial segment delivered an EBITDA of NOK 1,111 million, in line with last year when excluding special items.
The Upstream segment delivered an EBITDA of NOK 11,849 million, second only to the record 2008 results.