Yara reports improved second-quarter results
Oslo, 19 July 2022: Yara delivers improved returns with higher prices and a strong performance from overseas assets, more than offsetting higher European feedstock costs and lower deliveries. Second-quarter operating income1 was USD 1,223 million compared with USD 477 million a year earlier.
“Yara’s business model remains resilient, and I would like to thank the whole Yara organization for another strong effort in a volatile market”, said Svein Tore Holsether, President and Chief Executive Officer of Yara. “However, there is a clear risk of nitrogen shortages and further price spikes if the gas situation in Europe deteriorates further", said Holsether.
Second-quarter EBITDA excl. special items1 was USD 1,475 million, compared with USD 775 million a year earlier. Net income attributable to shareholders of the parent was USD 664 million (USD 2.61 per share) compared with USD 539 million (USD 2.10 per share) a year earlier.
Yara’s market environment is supportive, with continuity in food production and related value chains remaining a top priority globally. However, seasonally lower Northern hemisphere demand combined with the recent European gas price surge is leading to significant curtailments in Europe, including Yara. Yara has currently curtailed several of its production plants, currently amounting to an annual capacity of 1.3 million tonnes of ammonia and 1.7 million tonnes of finished fertilizer.
Today Yara also publishes its first Green Financing Framework, underlining its commitment to sustainability as an integral part of its strategy. Eligible green projects are expected to create substantial environmental benefits by decarbonizing the food chain, including fertilizer production and application, and by limiting the need to expand farmland. CICERO has provided a second-party opinion and rated the framework medium green. Link to framework:
Yara’s resilient business model continues to generate robust returns, leading to strong dividend capacity going forward in line with Yara’s capital allocation policy. The company paid dividends of USD 796 million in 2Q, and the Board will consider further cash returns in connection with 3Q results.
Link to report, presentation and webcast 19 July at 12:00 CEST:
1) For definition and reconciliation of Alternative Performance Measures, see APM section in 2Q report, page 34-40
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 34-40.
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About Yara
Yara grows knowledge to responsibly feed the world and protect the planet. Supporting our vision of a world without hunger and a planet respected, we pursue a strategy of sustainable value growth, promoting climate-friendly crop nutrition and zero-emission energy solutions. Yara’s ambition is focused on growing a nature positive food future that creates value for our customers, shareholders and society at large and delivers 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 sustainYara reports improved second-quarter resultsability of food production. Through our focus on clean ammonia production, we aim to enable the hydrogen economy, driving a green transition of shipping, fertilizer production and other energy intensive industries.
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. We operate an integrated business model with around 17,000 employees and operations in over 60 countries, with a proven track record of strong returns. In 2021, Yara reported revenues of USD 16.6 billion.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
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