Yara reports higher results, delivering operational and commercial improvement
Oslo, 18 October 2019: Third-quarter net income after non-controlling interests was USD 74 million (USD 0.27 per share), compared with USD 98 million (USD 0.36 per share) a year earlier. Excluding currency effects and special items, the result was USD 0.94 per share compared with USD 0.50 per share in third quarter 2018.
Third-quarter EBITDA excluding special items was USD 630 million, up from USD 402 million a year earlier, mainly reflecting higher nitrogen upgrading margins and strong premium product deliveries.
“Yara delivers significantly improved results in third quarter, with EBITDA excluding special items and IFRS 16 up 49%. The results reflect lower energy cost, higher production and strong premium product deliveries,” said Svein Tore Holsether, President and Chief Executive Officer of Yara.
"I am pleased to see our results improve within all business segments, with the strongest increase in New Business. Our return on capital continues its positive trend, and our main priority remains to keep improving returns as a focused company," said Holsether.
Total Sales and Marketing deliveries were 5% lower compared to a year earlier, but with a positive mix effect as deliveries increased for high-margin products. New Business deliveries were 3% higher than a year ago. Yara’s ammonia production was up 8%, while finished fertilizer production was the same as a year earlier.
Yara’s near-term focus is on improving returns through strict capital allocation and driving operational excellence. Yara’s investments peaked in 2018, with revenues ramping up from 2019 onwards as growth projects come on stream and further operational improvements are realized. Yara launched extended improvement targets in June this year, targeting 4.2 million additional tonnes of production by 2023 compared with 2018, in addition to fixed cost savings and improvements within energy efficiency, variable cost and operating capital.
Link to report, presentation and webcast 18 October at 09:30 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 31-36.
Thor Giæver, Investor Relations
Mobile: (+47) 480 75 356
Kristin Nordal, Media Relations
Mobile: (+47) 900 15 550
Yara grows knowledge to responsibly feed the world and protect the planet, to fulfill our vision of a collaborative society, a world without hunger and a planet respected. To meet these commitments, we have taken the lead in developing digital farming tools for precision farming and work closely with partners throughout the whole food value chain to develop more climate-friendly crop nutrition solutions. In addition, we are committed to working towards sustainable mineral fertilizer production. We foster an open culture of diversity and inclusion that promotes the safety and integrity of our employees, contractors, business partners, and society at large. Founded in 1905 to solve the emerging famine in Europe, Yara has a worldwide presence with about 17,000 employees and operations in over 60 countries. In 2018, 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