Feb 14, 2008
Yara reports fourth-quarter net income after minority interest of NOK 2,044 million (NOK 7.01 per share), compared with NOK 891 million (NOK 3.01 per share) last year. Excluding net foreign exchange gains/losses and special items, the result was approximately NOK 3.86 per share compared with NOK 2.35 per share in fourth quarter 2006. Fourth-quarter operating income was NOK 1,494 million compared with NOK 521 million last year. EBITDA for the quarter was NOK 2,531 million compared with NOK 1,351 million in the fourth quarter last year. Yara's board will propose to the Annual General Meeting a dividend payment of NOK 4 per share for 2007.
"We continue to deliver strong financial performance with further margin improvements and volume growth. The global fertilizer market is tight with growing demand and limited new capacity, resulting in substantial fertilizer price increases to balance the market. The price increases have more than compensated for higher energy costs," said Thorleif Enger, President and CEO of Yara International ASA.
"The integration of Kemira GrowHow into Yara's operations is progressing well, with additional synergies of approximately NOK 140 million (Yara share) now identified for the UK joint venture. The prospects for the acquired activity have improved significantly with the tightening of the phosphate market, and we are enthusiastic about opportunities to expand phosphate rock production in Finland", said Thorleif Enger.
Full-year net income after minority interest was NOK 6,037 million (NOK 20.60 per share), compared with NOK 4,188 million (NOK 13.86 per share) for 2006. Excluding net foreign exchange gains/losses and special items, the result was NOK 15.91 per share compared with NOK 9.80 per share in 2006. Full-year operating income was NOK 4,987 million, compared with NOK 3,352 million last year. EBITDA was NOK 8,441 million compared with NOK 6,472 million last year.
Fourth-quarter fertilizer sales excluding Kemira GrowHow were up 10% from last year, primarily reflecting a strong market in Europe. All regions saw substantial fertilizer margin improvements, reflecting a demand-driven market and strong focus on price management. The Industrial segment continues to grow rapidly. Sales of environmental products for NOx abatement increased 48% from last year driven by stricter legislation and technical ammonium nitrate sales increased 18% amid booming mining activity. The Industrial segment realized a one-off gain of NOK 795 million by the establishment of the Yara Praxair joint venture. The Upstream segment delivered strong results driven by higher prices, partly offset by an energy cost increase in line with expectations.
Global fertilizer demand continues to be supported by tight food markets and falling grain stocks, driving grain prices to historical highs. The supply-demand balance is strengthened by further delays to new fertilizer production capacity. Yara's first-half 2008 European energy cost is expected to be substantially higher than last year, but current fertilizer price levels would more than compensate for these higher costs.
For further information
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, natural minerals 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 9,000 employees represents great diversity and talent enabling Yara to remain a leading performer in its industry.www.yara.com