Oct 20, 2009
Yara reports third-quarter net income after minority interest of NOK 349 million (NOK 1.21 per share), compared with NOK 3,175 million (NOK 10.91 per share) last year. Excluding net foreign exchange gains and special items, the result was approximately NOK 0.46 per share compared with NOK 14.71 per share in third quarter 2008. EBITDA for the quarter was NOK 860 million compared with NOK 6,089 million in third quarter 2008.
"Our third-quarter results were non-satisfactory, mainly due to NPK sales being hampered by high potash prices. However, fertilizer sales are picking up as pipeline effects come to an end and food demand growth remains robust. Farmers are increasing fertilizer purchases, but deliveries in Europe and North-America continue to be subdued by distributers still unwilling to build inventories for the spring application. With a cost position supported by lower gas costs in Europe, Yara has been able to take market share by running all available straight nitrogen fertilizer capacity", said Jørgen Ole Haslestad, President and Chief Executive Officer of Yara.
"NPK demand is expected to normalize when potash prices adjust to more sustainable levels. Until this happens, Yara will continue to curtail NPK capacity. We continued to reduce debt in the third quarter through further NOK 3 billion reductions in operating capital", said Jørgen Ole Haslestad.
Third-quarter fertilizer deliveries were up 10% on last year. European fertilizer sales increased for all main product groups except NPK. Volumes outside Europe were up 27% primarily in Brazil and North America. Industrial margins improved strongly compared with third quarter 2008, reflecting strong commercial management and contract lag benefits. European oil and gas costs decreased in line with Yara's second quarter guidance, reflecting lower oil-linked and hub gas prices and Yara's decision to continue maximizing spot exposure in its energy contracts.
Going forward, Yara will benefit further from lower European energy costs, estimated to be NOK 1.2 billion lower in fourth quarter compared with last year.
Link to 3rd quarter webcast 20 October at 0930 CET
Torgeir Kvidal, Investor Relations
Telephone (+47) 24 15 72 95
Cellular (+47) 91 33 98 32
Asle Skredderberget, Media Relations
Cellular (+47) 41 44 36 10
Yara International ASA is the world's 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, we help provide food for a growing world population. Our industrial product portfolio includes environmental protection agents that prevent air pollution. Yara's global workforce of 8000 employees represents the great diversity and knowledge that enables Yara to remain a leading performer in the industry.