Oslo, 20 October 2021: Yara delivers improved returns reflecting higher prices in third quarter. Net income was a negative USD 143 million, compared with a positive USD 340 million a year earlier. The negative net income includes a USD 355 million impairment of Salitre assets in line with Yara’s regulatory release dated 1 August 2021, and a currency translation loss of USD 148 million. Excluding currency effects and special items, the basic earnings per share was USD 1.33 compared with USD 0.88 per share in third quarter 2020.
The main elements of the third-quarter results are:
“Yara delivers solid third quarter results, with EBITDA2 excluding special items up 37%, mainly thanks to improved margins. However, the gas price spike in Europe has led to Yara curtailing around 40% of its European ammonia production,” said Svein Tore Holsether, President and Chief Executive Officer of Yara.
"European nitrogen production is essential to global food security, and we are therefore concerned about the impact current European natural gas prices will have, especially for the world’s poorest regions. However, Yara will do its utmost to supply farmers and support global food production. The current situation clearly demonstrates the need for more resilient food supply chains, and I call on authorities, international organizations and food value chain players to work together to secure global food supply,” said Holsether.
Third-quarter operating income was USD 121 million, compared with USD 384 million a year earlier. Earnings per share excluding currency effects and special items was USD 1.33, compared with USD 0.88 per share in third quarter 2020.
Yara’s leading food solutions and ammonia positions are well placed to both address and create business opportunities from global challenges, as the twin demands of increased resource efficiency and lower environmental footprint require significant transformations within both agriculture and the hydrogen economy.
Link to report, presentation and webcast 20 October at 12:00 CEST:
1) Return on invested capital, for definition and reconciliation of ROIC see APM section in 3Q report page 30
2) For definition and reconciliation of EBITDA excl. special items, see APM section in 3Q report page 29
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 29-34.
Silje Nygaard, Acting Head of Investor Relations
Mobile: (+47) 957 04 843
Josiane Kremer, Director External Communications
Mobile: (+47) 481 80 451
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 climate 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 sustainability 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 2020, Yara reported revenues of USD 11.6 billion.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act