Jul 17, 2007
Yara reports second-quarter net income after minority interest of NOK 1,422 million (NOK 4.85 per share), compared with NOK 1,041 million (NOK 3.42 per share) last year. Operating income was NOK 1,329 million compared with NOK 924 million in the same quarter last year. EBITDA for the quarter was NOK 2,222 million compared with NOK 1,682 million last year.
"Yara made good progress in the second quarter, delivering strong results and new growth initiatives. We have taken steps to acquire Kemira GrowHow and establish an important joint venture in Libya. A JV will also be established with Praxair to further develop our industrial gas business", says Thorleif Enger, President and CEO of Yara International ASA.
"Competition in the European natural gas market is increasing due to new supply and increased liquidity at trading hubs. Yara is taking advantage of this development and has secured increased flexibility in several European gas contracts", says Thorleif Enger.
The Downstream segment increased sales by 8%, primarily in Brazil, and the substantial margin expansion realized in first quarter continued into the second quarter amid strong demand-driven fertilizer markets. The Industrial segment delivered a strong second quarter with continued volume and margin growth. Yara has over many years actively participated in the development and implementation of environmental solutions that reduce harmful air pollution. Sales of NOx abatement applications to the transport sector and power stations were up 50% compared with the second quarter last year. The Upstream segment benefited from higher urea prices, a strong production and lower energy costs, partly due to the revision of several European gas contracts.
Going forward, a further drop in global grain stocks by the end of the 2007/2008 season is forecast, supporting continued strong grain prices, suggesting solid farm profitability and fertilizer demand in the coming season.
For further information
The entire quarterly report and the presentation material used during the press and analyst conference are available on
Torgeir Kvidal, Investor Relations
Telephone (+47) 24 15 72 95
Cellular (+47) 91 339 832
Hamed Brodersen, Media Relations
Cellular (+47) 40 468 110
Yara International ASA is a leading chemical company that converts energy and nitrogen from the air into essential products for farmers and industrial customers. As the number one global supplier of mineral fertilizers and agronomic solutions, we help provide food for a growing world population. Our industrial product portfolio includes environmental protection agents that safeguard air and water purity and preserve food quality. Yara's global workforce of more than 7,000 employees represents great diversity and talent enabling Yara to remain a leading performer in its industry.