Yara reports strong results with increased margins

Oslo-Yara International ASA on April 18 reported strong results for first quarter 2008. Net income after minority interest was NOK 2,808 million (NOK 9.63 per share), compared with NOK 1,085 million (NOK 3.67 per share) last year. Excluding net foreign exchange gain and special items, the result was approximately NOK 8.98 per share, compared with NOK 3.59 per share in first quarter 2007. EBITDA for the quarter was NOK 3,988 million, compared with NOK 1,787 million last year. First-quarter operating income was NOK 2,860 million, compared with NOK 1,063 million last year. “Our results increased strongly in the first quarter, driven by substantial margin expansion for nitrate and NPK fertilizer. This demonstrates the value of Yara’s European position, helped by a strong European fertilizer market, and our unique position in more high-value fertilizer products like nitrates and NPKs,” said Thorleif Enger, Yara president and CEO. “The global fertilizer market has remained tight during the last year, with global production running close to full capacity. The market has been balanced by a combination of higher prices reducing demand and increased Chinese exports attracted by high prices. The recent announcement of 135 percent Chinese export tax for fertilizer will further tighten the global market.”