Oslo (2013-07-19): Yara International ASA delivered strong second-quarter results, with a 21% increase in fertilizer deliveries, partially offsetting the negative development in commodity fertilizer prices. Global urea prices declined almost 30%, while value-added fertilizer prices were broadly in line with a year ago.
"Yara reports a strong second quarter with record deliveries," said Jørgen Ole Haslestad, President and Chief Executive Officer in Yara.
"While we have seen a considerable price decline for urea - almost 30% - our value-added product prices are broadly in line with a year ago, as continued strong food prices motivate farmers to optimize productivity with higher-efficiency fertilizer," said Jørgen Ole Haslestad.
Yara reports second-quarter net income after non-controlling interests of NOK 1,865 million (NOK 6.68 per share), compared with NOK 2,787 million (NOK 9.82 per share) a year earlier. Excluding net foreign exchange loss and special items, the result was NOK 7.98 per share compared with NOK 10.80 per share in second quarter 2012. Second-quarter EBITDA excluding special items was NOK 4,066 million compared with NOK 5,194 million a year earlier.
Yara fertilizer deliveries increased for all main product groups. Urea sales increased by 42%, reflecting higher sales of Qafco urea primarily in Brazil and North America, but also in the Mediterranean region. Compound NPK saw continued strong demand, and deliveries were up 30% with strong European and Asian core market growth. Nitrate deliveries were 14% above last year, mainly reflecting higher European sales.
Second-quarter nitrogen fertilizer industry deliveries in Europe were up 14% reflecting strong demand for immediate consumption, following poor weather in March. The European nitrogen fertilizer industry enters the 2013/14 season in Europe with lower stocks, in Yara's case 19% lower than a year ago. European farm margins remain strong, with somewhat lower cereal prices but significantly higher dairy prices than a year ago.
Link to report and presentation:
Link to webcast 19 July at 09:30 CEST:
Thor Giæver, Investor Relations
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Bernhard Stormyr, Corporate Communications
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Yara delivers solutions for sustainable agriculture and the environment. Our fertilizers and crop nutrition programs help produce the food required for the growing world population. Our industrial products and solutions reduce emissions, improve air quality and support safe and efficient operations. Founded in Norway in 1905, Yara has a worldwide presence with sales to 150 countries. Safety is always our top priority.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.