Yara’s Safe by Choice initiative started in 2013 led to improved safety performance in 2014, with a Total Recordable Injury (TRI) rate per million hours worked of 3.9, down from 4.3 in 2013.
Ammonia production decreased 4% compared to 2013, reflecting a fire in the Tertre plant that kept the plant out of production for three months, lower production in Lifeco and several scheduled major turnarounds. Despite the drop in ammonia production, finished fertilizer production increased 1% compared to 2013 with new production records in several plants. The inclusion of the acquired Cartagena plant (OFD) from October 2014 also contributed positively.
Fertilizer deliveries were up 11% compared with 2013 including the full-year effect of Bunge in Brazil and OFD volumes from 1 October 2014. NPK compounds increased 3% while nitrates were down 3% and urea down 4%. Excluding Brazil and OFD, volumes were in line with 2013. Industrial product deliveries were 5% higher compared to 2013, with the strongest growth delivered by Air1 NOx abatement products for automotive use, with a 31% increase.
Driven by a drop of 2.5 USD/MMBtu in European spot gas prices, Yara’s global average oil and gas price ended 14% lower than in 2013. Yara’s average realized urea prices were 5% lower, realized nitrate prices were 2% lower and NPK compound prices decreased 4%. NPK premium above blend cost was in line with 2013 while blend margins in Brazil increased slightly in 2014. Industrial margins improved for all main product lines except Technical Ammonium Nitrates for civil explosives, where the global supply demand balance developed negatively in 2014 as mining activity slowed down.
The Downstream segment delivered an 11% increase in fertilizer sales volumes, higher NPK premiums, while the TRI rate increased by 13% in 2014.
The Industrial segment delivered a 3% increase in sales volumes with higher margins and an improved safety performance with a 22% TRI reduction.
The Upstream segment delivered a 4% reduction in ammonia production, a 1% increase in finished fertilizer production, and an improved safety performance with a 17% TRI reduction.