Oslo-Yara International ASA reports strong results for the first quarter 2007. Results improved as the European fertilizer market recovered, global fertilizer prices strengthened, and energy costs were slightly down. Yara reports net income after minority interest of NOK 1,085 million (NOK 3.67 per share) for the first quarter, compared with NOK 853 million (NOK 2.77 per share) in the first quarter last year. Excluding net foreign exchange gain, the result was approximately NOK 3.52 per share compared with NOK 2.57 per share in first quarter 2006. EBITDA for the quarter was NOK 1,787 million compared with NOK 1,492 million in the first quarter last year. First-quarter operating income was NOK 1,063 million compared with NOK 758 million in the same quarter last year. “We delivered strong results in the first quarter, with fertilizer sales volumes up 18 percent from last year,” said Thorleif Enger, Yara president and CEO. “Most of the increase was in Europe, picking up from a slow first half of the season, and in Brazil following the recovery of the Brazilian agro-industry and our Fertibras acquisition. Fertilizer margins improved as prices increased and gas costs declined. Increased fertilizer prices reflect a tight market with increased imports into major markets.” The Downstream segment benefited from increased sales in Europe, Latin America and Southeast Asia. The Industrial segment saw solid sales growth, especially for technical ammonium nitrate and environmental products. The Upstream segment benefited from a strong increase in global urea prices and 10 percent higher ammonia production due to high capacity utilization in Europe and the new ammonia plant in Burrup, Australia. Higher grain prices will substantially improve farm profitability in 2007, and support fertilizer demand. Yara’s European gas costs for the next 6 months are, based on current forward prices, estimated to be NOK 250 million below last year.
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