Yara writes down Lifeco investment by USD 112 million
Apr 20, 2015
Oslo, 20 April 2015: Due to the worsening security outlook in Libya, Yara sees a high likelihood of a further deterioration in 2015 of the operating ability of the Lifeco joint venture plants. Given an already challenging feedstock and financial situation for the joint venture, Yara has therefore decided to write down the value of its Lifeco investment by USD 112 million, leaving a remaining book value of USD 18 million.
The political and security situation in Libya has worsened rapidly, and may deteriorate further over the next year. In light of this, Yara is evaluating the operation of the plants on an on-going basis in cooperation with the other partners, in order to protect the employees as well as the assets.
Yara will continue participating in the governance of Lifeco, with the aim of resuming full production once real improvements are seen in the security and political situation in Libya, creating a sustainable improved operating outlook for Lifeco.
The impairment will be reported as part of Yara's first-quarter EBIT and EBITDA, under "Share of net income in equity-accounted investees".
For further information, please contact:
Esben Tuman, Head of Corporate Communications
Office: (+47) 24 15 70 26
Phone: (+47) 90 50 84 00
Anders Lerstad, Head of Investor Relations
Office: (+47) 24 15 72 95
Phone: (+47) 93 42 69 54
Yara's knowledge, products and solutions grow farmers' and industrial customers' businesses profitably and responsibly, while nurturing and protecting the earth's resources, food and environment.
Our fertilizers, crop nutrition programs and technologies increase yields, improve product quality and reduce the environmental impact of agricultural practices. Our industrial and environmental solutions improve air quality by reducing emissions from industry and transportation, and serve as key ingredients in the production of a wide range of goods. We foster a culture that promotes the safety of our employees, contractors and societies.
Founded in 1905 to solve emerging famine in Europe, today, Yara has a worldwide presence, with more than 12,000 employees and sales to more than 150 countries.
This information is subject of the disclosure requirements acc. to §5-12 vphl (Norwegian Securities Trading Act)