Oct 21, 2005
Yara reports a net income after minority interest of NOK 846 million (NOK 2.70 per share) for the third quarter, compared with NOK 759 million (NOK 2.38 per share) in the third quarter last year. Excluding net foreign exchange gains/losses, the result was approximately NOK 2.65 per share compared with NOK 2.27 per share in third quarter 2004 EBITDA for the quarter was NOK 1,505 million compared with NOK 1,477 million in the third quarter last year. Third quarter operating income was NOK 783 million compared with NOK 834 million in the same quarter last year.
"During the third quarter, global market demand for fertilizer was somewhat slower than expected, partly due to drought in many places in the world. At the same time, energy prices have increased sharply, which towards the end of the quarter resulted in the fertilizer market becoming supply-driven. Yara has under these demanding market conditions performed well and continues to deliver strong results," says Thorleif Enger, President and CEO of Yara International ASA.
Within the Upstream segment the production continued at high levels with third quarter production of finished fertilizer up 9% and ammonia production up 13% compared with third quarter 2004. The Downstream segment on the other hand saw reduced volumes, especially due to the severe drought in Brazil this year. In Asia a substitution of low-margin sales with quality cash crop sales continued. Yara's Industrial segment has seen a positive market response during the quarter with continued growth and new customers within N-chemicals, liquid CO2 and dry ice. Environmental products showed a 20% volume growth.
The current high natural gas prices have already resulted in reduced fertilizer production from US companies, and market analysts expect further closures in the region. Increased production costs and reduced fertilizer supply create upward pressure on fertilizer prices going forward. At the same time, long-term fertilizer demand is supported by low global grain inventories.
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Egil Hogna, Investor Relations
Telephone (+47) 24 15 71 66
Cellular (+47) 90 187 865
Arne Cartridge, Media Relations
Telephone (+47) 24 15 73 01
Cellular (+47) 47 900 900
Yara International ASA is the world's leading supplier of mineral fertilizers with particular strength in nitrogen-based fertilizers. Yara has a local presence in 50 countries worldwide. Yara sells more than 20 million tonnes of mineral fertilizers in more than 120 countries. Yara offers fertilizers meeting the nutrient needs of local crops supported by agronomic advice to make farming more profitable and agriculture more sustainable. Yara has a strong position in industrial markets in Europe as a supplier of nitrogen-based chemicals and is the leading supplier of liquid CO2.