Yara reports strong second-quarter results
Jul 19, 2011
Yara International ASA reports strong second-quarter results, primarily reflecting a significant margin improvement compared with last year.
Yara reports second-quarter net income after non-controlling interests of NOK 2,225 million (NOK 7.73 per share), compared with NOK 3,716 million (NOK 12.86 per share) last year. Excluding net foreign exchange gain/loss and special items, the result was NOK 7.82 per share compared with NOK 5.22 per share in second quarter 2010. Second-quarter EBITDA excluding special items was NOK 3,532 million compared with NOK 2,719 million last year.
"Yara reports strong second-quarter results as margins improved strongly for all main product groups. The 2010/2011 fertilizer season has been a success due to Yara's commercial model, with a highly competitive return on capital," said Jørgen Ole Haslestad, President and Chief Executive Officer of Yara.
"As expected, drought in Europe held back deliveries in April and May. However, short term weather-related setbacks increase the need for fertilizer going forward. The global grain supply-demand balance is expected to tighten further, and there is a need to continue increasing agricultural productivity," said Jørgen Ole Haslestad.
Yara fertilizer deliveries were up four percent on second quarter last year, with stronger urea sales in particular. Margins improved for all main product groups, with the strongest increase for NPK and nitrates. Industrial volumes increased twelve percent, primarily reflecting growth in environmental products globally and N-chemical sales in Europe. Yara's plants produced around 600 kilotons less in the second quarter compared with full run rate, mainly reflecting a higher than normal concentration of plant turnarounds, in addition to the Lifeco outage.
Going forward, a tightening grain supply-demand balance points to continued strength in crop prices and a strong need to increase agricultural productivity. Yara's third-quarter ammonia production rates are expected to be in line with second quarter due to outages in Lifeco, Hull, Burrup and Billingham, while finished fertilizer is expected to run at full capacity excluding Lifeco. The new nitrate season in Europe is progressing well and nitrate stocks are low.
Link to 2Q report and presentation:
Link to 2Q webcast 19 July at 09:30 CEST:
Thor Giæver, Investor Relations
Telephone (+47) 24 15 72 95
Cellular (+47) 48 07 53 56
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 7,300 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 pursuant to section 5-12 of the Norwegian Securities Trading Act.