Yara reports increased deliveries and operating income
Oslo, 23 April 2020: First-quarter net income after non-controlling interests was a negative USD 117 million (USD -0.43 per share), compared with USD 96 million (USD 0.35 per share) a year earlier. The negative result includes a non-cash currency loss of USD -0.81 per share resulting mainly from a US dollar strengthening through the quarter. Excluding currency effects and special items, the result was USD 0.39 per share compared with USD 0.59 per share in first quarter 2019.
First-quarter operating income was USD 248 million, up from USD 198 million a year earlier. First-quarter EBITDA excluding special items was USD 504 million, up from USD 464 million a year earlier, mainly reflecting higher premium product deliveries and lower energy cost, more than offsetting the impact of lower prices.
“Yara delivers improved results, with first-quarter EBITDA excluding special items up 9%. Yara’s operations are running close to normal and the results mainly reflect higher deliveries with Northern hemisphere planting and application progressing well,” said Svein Tore Holsether, President and Chief Executive Officer of Yara.
“Supporting the supply of food to society is a top priority for Yara. Thanks to a strong organizational effort and good collaboration with authorities globally, we have managed to ensure continuity in the supply of agricultural inputs. We are also seeing strong demand growth for our digital offerings, in a situation where physical farmer interactions are reduced,” said Holsether.
Total Sales and Marketing deliveries were 10% higher compared with a year earlier, primarily reflecting a 15% increase in deliveries in Europe. Commercial margins were stable compared with a year earlier. New Business deliveries were flat. Yara’s ammonia production was down 7%, while finished fertilizer production was down 3% compared to a year earlier.
Yara has decided to develop its industrial nitrogen businesses in an «Industrial Holding» structure within Yara with separate governance and increased autonomy. The structure will comprise the existing New Business segment together with the Brunsbüttel, Le Havre, Köping and Cubatão production plants. The structure and reporting will be finalized during 2020.
Link to report, presentation and webcast 23 April 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 29-34.
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. 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