OSLO, 12-2-2015 — /EuropaWire/ — Yara International ASA delivered strong fourth-quarter results, with margins benefiting from lower European gas prices and a stronger US dollar. Yara’s board will propose to the Annual General Meeting a dividend payment of NOK 13 per share for 2014.
“Yara reports strong fourth-quarter results with improved margins, reflecting lower natural gas cost in Europe and a stronger US dollar,” said Torgeir Kvidal, Acting President and Chief Executive Officer of Yara.
“Our Brazilian activities continue to perform well, with both higher volumes and margins. We are also ahead of plan with synergy capture from the Bunge acquisition, with USD 55 million realized in 2014,” said Torgeir Kvidal.
Yara reports fourth-quarter net income after non-controlling interests of NOK 1,860 million (NOK 6.74 per share), compared with NOK 63 million (NOK 0.23 per share) a year earlier. Excluding net foreign exchange loss and special items, the result was NOK 8.17 per share compared with NOK 2.80 per share fourth quarter 2013. Fourth-quarter EBITDA excluding special items was NOK 4,528 million compared with NOK 2,360 million a year earlier.
Yara’s fertilizer deliveries were up 7% from fourth quarter 2013, mainly due to the acquisition of OFD in Latin America which was completed 1 October. Excluding OFD, deliveries are up 2%, driven by a 7% increase in deliveries outside Europe. Industrial sales volumes increased by 3% compared with fourth quarter 2013.
Yara’s margins benefited from lower energy costs and a stronger US dollar during the fourth quarter. While Yara’s global average oil and gas cost decreased 17% in the fourth quarter, Yara’s average realized urea prices increased 5% compared to a year ago and realized nitrate and NPK prices were at the same level as last year. Industrial margins increased for all main product groups except technical ammonium nitrate.
Global nitrogen demand remained strong during the fourth quarter. Season to date industry deliveries are higher than the previous season both in Europe and the US, and Yara enters the first quarter with a strong European order book. A weaker euro and lower gas prices have improved the relative competitiveness of European fertilizer capacity. Based on current forward markets for oil products and natural gas, Yara’s European energy costs next two quarters are expected to be NOK 2 billion lower than a year earlier.
Link to report and presentation:
Link to webcast 11 February at 09:30 CET:
Anders Lerstad, Investor Relations
Telephone: (+47) 24 15 72 95
Cellular: (+47) 93 42 69 54
Esben Tuman, Media Relations
Telephone: (+47) 24 15 70 26
Cellular: (+47) 90 50 84 00
Yara delivers solutions for sustainable agriculture and the environment. Our fertilizers and crop nutrition programs help produce the food required for the growing world population. Our industrial products and solutions reduce emissions, improve air quality and support safe and efficient operations. Founded in Norway in 1905, Yara has a worldwide presence with sales to 150 countries. Safety is always our top priority.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.