Oct 19, 2007
Yara reports third-quarter net income after minority interest of NOK 1,487 million (NOK 5.10 per share), compared with NOK 1,403 million (NOK 4.68 per share) last year. Operating income was NOK 1,101 million compared with NOK 1,149 million in the same quarter last year. EBITDA for the quarter was NOK 1,901 million compared with NOK 1,947 million last year. In the third quarter last year, Yara's result included a net income effect of NOK 832 million from the sale of ammonia ships.
"Our strong performance continued in the third quarter. Industrial sales grew sharply driven by environmental applications and higher nitrate sales to the mining industry. We delivered improved fertilizer margins amid strong demand and a production increase of 7%, reflecting strong operational performance in all plants", says Thorleif Enger, President and CEO of Yara International ASA.
"We welcome the early approval by the European Commission of the Kemira GrowHow acquisition, and the acceptance of the tender offer by more than 97% of Kemira GrowHow's shareholders, facilitating an earlier integration of Kemira GrowHow's operations into Yara. The acquisition increases Yara's geographical distribution and sourcing capabilities, offers scale and synergy benefits and creates a stronger platform within phosphate products and balanced fertilization", says Thorleif Enger.
Downstream segment sales increased 2%, primarily reflecting growth in Latin America and the US. Deliveries in Europe were down 2% as Yara exported nitrates out of Europe to take advantage of favorable market conditions in the Americas. Margins were higher in all markets, reflecting a demand-driven environment. Industrial segments sales were particularly strong, with substantial growth for nitrogen chemicals, technical nitrates for mining customers and environmental products. The Upstream segment increased production of finished fertilizer by 7% and ammonia by 10% from last year.
Going forward, lower global grain stocks and grain prices at historical highs support strong fertilizer demand, and the European Commission's release of set-aside land provides an additional boost for European demand. Start-ups of new fertilizer capacity continue to be delayed, and existing production capacity will be reduced by recently announced closures in Europe and North America.
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
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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.www.yara.com