Coffee beans

Yara well positioned in an attractive market

Dec 07, 2010

Oslo (2010-12-07): Yara International ASA today meets with investors and analysts for Yara's Capital Markets Day to present improved market prospects and Yara's strong position and growth opportunities.

"Fertilizer demand has picked up strongly this autumn following tighter markets for agricultural commodities. Agricultural markets have strengthened partly due to a drop in global grain production, but the fundamental driver is continued strong demand growth as an increasing and more prosperous population improve their diets. More and better use of fertilizer will be a vital contributor in the quest for a sustainable improvement in agricultural productivity. Fertilizer prices have increased substantially reflecting the tight market. Currently all available global fertilizer capacity is utilized, with the exception of curtailments in China due to energy saving and environmental considerations", says President and CEO Jørgen Ole Haslestad.

Yara presents new scenarios for future earnings at the Capital Markets Day. The scenarios are not a prediction of future results, but are "what if" examples based on selected fertilizer and energy price scenarios. The earnings reflect the current business portfolio including ongoing expansion investments.

A supply-driven market where China is the highest-cost exporter translates into an estimated Earnings Per Share (EPS) of NOK 18, a scenario which is relevant if the fertilizer market turns over-supplied. Today the global fertilizer market is demand-driven following a tightening in agricultural markets. Continued growth in food demand and the need for improved agricultural productivity increase the probability of a continued tight fertilizer market. A demand-driven scenario with USD 150 per ton urea margins yields an estimated EPS of NOK 47.

"Yara has demonstrated strong earnings and has realized profitable growth opportunities since the IPO in 2004. An attractive market, a proven track record and a scalable business model is the basis for our firm growth ambitions, both for organic and step-wise growth. The Downstream and Industrial segments' global presence and products portfolio are well positioned to meet demand for improved agricultural productivity as well as the growing challenges of climate change, air pollution and water scarcity. When it comes to step growth we will continue to be patient, aiming to pick the best opportunities at the right time. In summary, we believe Yara's global business model forms a strong basis for future growth", says President and CEO Jørgen Ole Haslestad.

Link to Yara Capital Markets Day presentation material:

Link to webcast of Yara's Capital Markets Day 7 December 2010 08:30 CET:



Torgeir Kvidal, Investor Relations
Telephone  (+47) 24 15 72 95
Cellular (+47) 91 339 832


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 7,600 employees represents the great diversity and knowledge that enables Yara to remain a leading performer in the industry.


This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)

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