Yara fourth-quarter asset impairments
Jan 29, 2016
Oslo, 29 January 2016: Yara International ASA will take an asset impairment charge of approximately NOK 1,150 million in its fourth-quarter 2015 results, of which approximately NOK 930 million relates to the Yara production plants in Montoir (France) and Trinidad. Yara's fourth-quarter 2015 operating income is expected to be approximately NOK 0.7 billion, while EBITDA is expected to be approximately NOK 3.5 billion.
The impairment charge for Yara Montoir is approximately NOK 550 million. The Montoir plant is one of Yara's smallest fertilizer plants, with an annual production capacity of approximately 300,000 tonnes nitrate and 300,000 tons NPK. In addition to small scale, the plant has limited export opportunities and is exposed to lower profitability in its home market, given lower grain prices and also lower phosphate and potash demand.
The impairment charge for Yara Trinidad is approximately NOK 380 million. The Trinidad plant is one of Yara's smallest ammonia plants, with an annual production capacity of approximately 270,000 tonnes ammonia. In addition to small scale, the plant suffers from frequent gas supply curtailments and also has lower energy efficiency than Yara's average.
In addition to the impairment charges, Yara's fourth-quarter results are impacted by lower sales and production volumes compared with a year earlier, mainly for ammonia and urea where Yara suffered significant production outages during the quarter. Deliveries of own-produced ammonia and urea were both down approximately 160,000 tonnes compared with a year earlier, while sales of own-produced nitrates were down approximately 100,000 tonnes. Compound NPK deliveries were in line with a year earlier.
No further details of Yara's fourth-quarter financial results will be released before the scheduled publication on 11 February.
Thor Giæver, Investor Relations
Mobile: (+47) 48 07 53 56
Kjetil Storås, Investor Relations
Telephone: (+47) 24 15 75 86
Mobile: (+47) 99 72 08 51
Yara's, knowledge, products and solutions grow farmers', distributors' 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 to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.