Yara International ASA announced today weaker third-quarter results compared with a year earlier. Third-quarter EBITDA excluding special items was down 35% at NOK 2,968 million compared with NOK 4,614 million a year earlier. The company noted that weaker fertilizer prices were only partly offset by higher deliveries of Yara-produced products, lower energy costs and currency translation gains.
Commenting President and Chief Executive Officer Svein Tore Holsether said:
“Yara reports a weaker result than a year earlier, reflecting supply-driven prices for fertilizer globally. But although production margins were significantly lower, our Crop Nutrition and Industrial earnings were broadly stable, demonstrating the strength and resilience of Yara’s integrated business model.”
“The over-supply situation in our industry is expected to last for some time, underlining the need for the Yara Improvement Program which we have announced earlier. Parts of the program have entered the implementation phase, and we are confident we will deliver at least USD 500 million of annual EBITDA improvement by 2020.”
Global Yara fertilizer deliveries were 4% higher than in third quarter 2015, with deliveries of Yara-produced products up 10%, driven by continued strong growth in Brazil and higher deliveries of compound NPK in all regions. In Europe, fertilizer deliveries were 1% higher than a year earlier, with deliveries of Yara-produced nitrates marginally lower than a year ago while compound NPK deliveries were up 16%.
Yara’s margins declined compared with third quarter last year, as sales prices fell more than input costs. Yara’s average realized urea and nitrate prices decreased around 25%. Yara’s average global gas costs were 25% lower than a year ago.
Full results information can be found here.