Yara International ASA delivered weaker third-quarter results compared to year-ago levels. Net income after non-controlling interests was NOK 709 million (NOK 2.60 per share), compared with NOK 821 million (NOK 3.00 per share) a year earlier.
“Our financial results are weaker than a year earlier due to lower commodity fertilizer margins,” said President and CEO Svein Tore Holsether. “Although prices picked up towards the end of the quarter, we continue to see the market as fundamentally supply-driven, and therefore remain focused on strengthening our own operations.” Total fertilizer deliveries were 6 percent higher than in third quarter 2016 driven by higher urea deliveries in North America and continued growth in Brazil. Industrial deliveries were 6 percent higher than a year earlier. Yara’s production system performed well during the quarter, with ammonia and finished fertilizer production respectively 7 percent and 8 percent higher than a year earlier.
“Yara reports a strong production performance for the quarter, with several production records and the Yara Improvement Program delivering ahead of schedule,” added Holsether.
Yara’s average realized nitrate prices increased 10 percent while realized NPK and urea prices were respectively 3 percent and 2 percent higher than a year ago. Yara said the global farm margin outlook and incentives for fertilizer application remains supportive overall, and the price trend for cereal, meat and dairy has been positive year to date.