YAR Yara International ASA

Yara reports improved margins and lower fixed cost

Yara reports improved margins and lower fixed cost

Oslo, 17 July 2020: Yara’s second-quarter EBITDA excluding special items was up 8% compared with a year earlier, mainly driven by improved margins and lower fixed cost. Net income after non-controlling interests was USD 223 million (USD 0.83 per share), compared with USD 230 million (USD 0.84 per share) a year earlier. Excluding currency effects and special items, the result was USD 1.06 per share compared with USD 0.77 per share in second quarter 2019.



Second-quarter operating income was USD 335 million, up from USD 266 million a year earlier. Second-quarter EBITDA excluding special items was USD 588 million, up from USD 546 million a year earlier.



“Yara delivers improved results, with second-quarter EBITDA excluding special items up 8%. I am pleased to see the Yara organization continuing to perform well in a demanding environment,” said Svein Tore Holsether, President and Chief Executive Officer of Yara.



“Our cash flow also continued to improve, with more than one billion US dollars of free cash flow generated over the last four quarters, and completion of the Qafco transaction expected within 2-3 weeks. We will initiate a buyback of 5% of Yara’s share capital upon completion and receipt of the Qafco proceeds,” said Holsether.



Sales and Marketing deliveries were down 2% compared with a year earlier, with lower volumes in Europe due to early spring phasing of deliveries, partly offset by higher deliveries in Brazil. The overall margin development was positive compared to a year earlier. New Business deliveries were 34% lower, as Covid-19 impacted the Maritime business and industrial nitrogen demand. Yara’s ammonia production was down 14% and finished fertilizer production was down 7% compared to a year earlier, mainly due to the closure of the Trinidad plant and reclassification of Qafco.



Yara’s market environment is in a positive trend overall, with a broadly stable global grain balance and receding urea supply pressure. Fertilizer and food demand is resilient also in times of crisis, and ensuring continuity in food production and related value chains remains a top priority for all countries. Nitrogen fertilizer markets are robust, with normal planting and application in the Northern hemisphere and strong demand from Brazil ahead of the Southern hemisphere main season. Yara’s industrial business has seen weaker demand in second quarter, but with improvement towards the end of the quarter.



Link to report, presentation and webcast 17 July at 12:00 CEST:





Note on Alternative performance measures: Alternative performance measures are defined, explained and reconciled to the Financial statements in the APM section of the Quarterly report on pages 33-38.





Contact



Thor Giæver, SVP Investor Relations

Mobile: (+47) 480 75 356

E-mail:



Josiane Kremer, Director External Communications

Mobile: (+47) 481 80 451

E-mail:





About Yara



Yara grows knowledge to responsibly feed the world and protect the planet. Supporting our vision of a world without hunger, we pursue a strategy of sustainable value growth, promoting climate-friendly and high-yielding crop nutrition solutions for the world’s farming community and food industry.



Yara’s ambition is to be the Crop Nutrition Company for the Future. We are committed to creating value for our customers, shareholders and society at large, as we work to develop a more sustainable food value chain. To achieve our ambition, we have taken the lead in developing digital farming tools for precision farming, and work closely with partners throughout the food value chain to improve the efficiency and sustainability of agriculture and food production.



Founded in 1905 to solve the emerging famine in Europe, Yara has established a unique position as the industry’s only global crop nutrition company. With our integrated business model and a worldwide presence of around 16,000 employees and operations in over 60 countries, we offer a proven track record of responsible and reliable returns.
In 2019, Yara reported revenues of USD 12.9 billion.







This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act



Attachments

EN
17/07/2020

Underlying

To request access to management, click here to engage with our
partner Phoenix-IR's CorporateAccessNetwork.com

Reports on Yara International ASA

 PRESS RELEASE

Yara publishes 2023 Integrated Report

Yara publishes 2023 Integrated Report Oslo: Yara has today published its 2023 Integrated Report, including complete 2023 Annual Accounts with notes. The report is attached as a pdf file and in European Single Electronic Format (ESEF). Yara has initiated the adoption of EU requirements in the Corporate Sustainability Reporting Directive (CSRD) and the accompanying European Sustainability Reporting Standards (ESRS). The 2023 Integrated Report embeds the EU Taxonomy disclosure and Sustainability Statements, meaning Yara no longer publishes separate Taxonomy and Sustainability reports. T...

 PRESS RELEASE

Yara publiserer integrert årsrapport for 2023

Yara publiserer integrert årsrapport for 2023 Oslo: Yara har i dag publisert den integrerte årsrapporten for 2023, inkludert årsregnskap med noter. Rapporten er vedlagt som PDF-fil og i European Single Electronic Format (ESEF). Yara har begynt implementering av kravene i EUs bærekraftsdirektiv (Corporate Sustainability Reporting Directive, CSRD) og medfølgende EU-standarder for bærekraftsrapportering (European Sustainability Reporting Standards, ESRS). Yaras taksonomi- og bærekraftsrapport er inkludert i den integrerte årsrapporten for 2023, og publiseres derfor ikke separat. ...

 PRESS RELEASE

Yara Growth Ventures invests in Dynelectro – an innovation leader in e...

Yara Growth Ventures invests in Dynelectro – an innovation leader in electrolysis technology for low-cost renewable hydrogen. Yara Growth Ventures invests in Dynelectro, who develops technologies to unlock the potential of solid oxide electrolysis (SOE). While SOE yields the highest possible efficiencies to produce renewable hydrogen and e-fuels, it has been suffering from system lifetime issues up to now. The investment is part of Yara’s ambition to decarbonize fertilizer production and enable the hydrogen economy. Dynelectro’s approach increases the lifetime of SOE systems...

 PRESS RELEASE

Yara SBR share purchases

Yara SBR share purchases Oslo, 29 February 2024: Today, Yara has purchased 91,492 shares (ticker: YAR, ISIN: NO0010208051) in the market at an average price of NOK 331.1475 per share. The shares are purchased on behalf of and transferred to Yara Group Executive Board members and other executives taking part in Yara’s Share Based Remuneration (SBR) programs. All SBR shares are locked in for a period of three years after purchase, and furthermore it is expected that members of the Group Executive Board do not sell any Yara shares as long as they are members of the Group Executive Board. The...

 PRESS RELEASE

John Kerry in Oslo; says Norway is key to decarbonizing hard to abate ...

John Kerry in Oslo; says Norway is key to decarbonizing hard to abate sectors Today, John Kerry, U.S. Special Presidential Envoy for Climate met with Norwegian Prime Minister, Jonas Gahr Støre, and Norwegian members of the First Movers Coalition (FMC) in Oslo to discuss decarbonization of the world's heavy-emitting sectors. “Taken together, the First Movers Coalition represents a $16 billion demand signal for goods in 2030 - the largest private demand signal for clean technologies in history. These companies are making commitments to change the way we procure some of our most basic goods...

ResearchPool Subscriptions

Get the most out of your insights

Get in touch