Yara 1Q income off 40 percent on higher volumes

Oslo—Yara International ASA reported first-quarter net income after non-controlling interests of NOK1,692 million (NOK6.19 per share) on revnues of NOK22,635 million, compared with the year-ago NOK2,800 million (NOK10.22 per share) and NOK25,053 million, respectively.

Excluding net foreign current translation gain/loss and special items, results were NOK1,369 million (NOK5.01 per share), compared with NOK2,510 million (NOK9.16 per share). EBITDA after special items was NOK3,335 million, down from NOK5,050 million.

“Yara reports a weaker result than a year earlier, reflecting lower fertilizer prices and margins. However, we delivered increased sales volumes, both for fertilizer and industrial products,” said Svein Tore Holsether, Yara president and CEO. The company also reported higher natural gas costs, which were up 28 percent during the quarter.

Yara said ammonia production was lower, underlining the need for ongoing improvement. Outages were cited at Pilbara in Australia and LeHavre in France. Yara reported that realized urea, nitrate, and NPK prices were down 5, 15, and 10 percent, respectively.

The urea market was pressured by weak demand in India, and while Chinese exports were down, increased capacities in several other countries kept pressure on prices. On the commodity markets, the company noted that while grain prices are stable, prices of sugar, coffee, oils, and dairy are up.