Yara International ASA, Oslo, reported a 24 percent rise in fourth-quarter net income, to $246 million ($0.93 per share) on revenues of $2.93 billion, up from the previous year’s $199 million ($0.73 per share) and $3.03 billion, respectively. Excluding currency effects and special items, the basic earnings per share was $0.76, versus $0.80 a year earlier.
Adjusted EBITDA was down 3 percent, to $511 million from $525 million a year ago, beating the average analyst estimate of $473.3 million based on a Bloomberg Consensus (range $445.0 million to $509.0 million).
The group cited the main factors behind the fourth-quarter EBITDA result as higher deliveries and production, offset by increased gas prices. Total deliveries for the fourth quarter rose 3 percent to 9.33 million mt, with 7.01 million mt of fertilizer delivered (4Q 2019: 6.48 million mt).
Total deliveries for the fourth quarter rose 3 percent to 9.33 million mt, with 7.01 million mt of fertilizer delivered (4Q 2019: 6.48 million mt).
Yara said revenues were stable in the quarter, as improved deliveries offset lower commodity prices.
Total revenues for Europe, Americas and Africa & Asia segments
| $ million | 4Q-2020 | 4Q-2019 |
| Nitrates | 331 | 341 |
| Of which: Premium | 117 | 149 |
| Compound NPKs | 708 | 645 |
| Of which: Premium | 330 | 330 |
| Total revenues | 2,303 | 2,291 |
| Of which Premium | 952 | 1,103 |
Yara sees spot-priced gas costs for the first-quarter of 2021 $100 million higher than a year earlier and second-quarter gas costs $145 million higher, compared with “the record lows” in 2020.
For full-year 2020, the company reported a 17 percent increase in net income, to $690 million ($2.58 per share) on revenues of $11.73 billion, up from the previous year’s $589 million ($2.20 per share) and $12.94 billion, respectively. Excluding currency effects and special items, the basic earnings per share was $3.08 versus $3.09 a year earlier. Sales fell 9 percent.
Full-year EBITDA came in at $2.22 billion, up 6 percent on the year from $2.095 billion, while EBITDA excluding special items was essentially flat year-on-year, at $2.16 billion.
Yara reported that its total capex commitments for 2020/21 remain unchanged at $2.2 billion, and plans a total capex of a maximum $1.2 billion per annum (both maintenance and growth) from 2022 onwards.
The group is proposing a NOK20 per share dividend to the annual general meeting, bringing its total cash distribution of shareholders for 2020 (paid and proposed) to NOK52 per share.
Yara Production and Deliveries
| ‘000 mt | 4Q-2020 | 4Q-2019 | FY2020 | FY2019 |
| Production | ||||
| Ammonia | 1,866 | 2,048 | 7,606 | 8,479 |
| Finished fertilizer and industrial products (excluding bulk blends)1 | 5,271 | 5,432 | 21,048 | 22,060 |
| Yara Deliveries | ||||
| Ammonia trade | 539 | 712 | 1,966 | 2,527 |
| Fertilizer | 7,012 | 6,476 | 29,045 | 27,620 |
| Industrial product | 1,781 | 1,910 | 7,086 | 7,837 |
| Total deliveries | 9,332 | 9,097 | 38,097 | 37,963 |
1 Including Yara share of production in equity-accounted investees, excluding Yara-produced blends
Yara Deliveries
| ‘000 mt | 4Q-2020 | 4Q-2019 | FY2020 | FY2019 |
| Crop Nutrition Deliveries | ||||
| Urea | 1,564 | 1,373 | 6,042 | 5,909 |
| Nitrate | 1,352 | 1,274 | 5,775 | 5,412 |
| NPK | 2,681 | 2,500 | 10,574 | 9,943 |
| CN | 363 | 241 | 1,433 | 1,237 |
| UAN | 253 | 264 | 1,405 | 1,287 |
| DAP/MAP/SSP | 188 | 167 | 1,014 | 1,096 |
| MOP/SOP | 323 | 309 | 1,473 | 1,326 |
| Other products | 289 | 349 | 1,328 | 1,411 |
| Total Crop Nutrition Deliveries | 7,012 | 6,476 | 29,045 | 27,620 |
| Europe Deliveries | ||||
| Urea | 253 | 148 | 1,009 | 796 |
| Nitrate | 981 | 888 | 4,334 | 4,057 |
| NPK | 705 | 620 | 2,769 | 2,714 |
| CN | 89 | 64 | 446 | 393 |
| Other products | 299 | 304 | 1,558 | 1,492 |
| Total Deliveries Europe | 2,327 | 2,025 | 10,116 | 9,452 |
| Americas Deliveries | ||||
| Urea | 664 | 678 | 2,692 | 2,615 |
| Nitrate | 323 | 321 | 1,196 | 1,117 |
| NPK | 1,513 | 1,502 | 6,070 | 5,687 |
| CN | 211 | 128 | 801 | 679 |
| DAP/MAP/SSP | 173 | 144 | 912 | 1,014 |
| MOP/SOP | 298 | 286 | 1,386 | 1,233 |
| Other products | 213 | 279 | 1,050 | 1,115 |
| Total Deliveries Americas | 3,395 | 3,338 | 14,108 | 13,461 |
| North America | 825 | 773 | 3,316 | 3,254 |
| Brazil | 2,090 | 2,140 | 8,813 | 8,438 |
| Latin America excluding Brazil | 480 | 425 | 1,979 | 1,769 |
| Africa & Asia Deliveries1 | ||||
| Urea | 647 | 548 | 2,341 | 2,497 |
| Nitrate | 48 | 64 | 245 | 237 |
| NPK | 463 | 378 | 1,735 | 1,542 |
| CN | 62 | 48 | 186 | 166 |
| Other products | 70 | 75 | 314 | 264 |
| Total Deliveries Africa & Asia | 1,291 | 1,113 | 4,821 | 4,707 |
| Asia | 988 | 815 | 3,652 | 3,525 |
| Africa | 302 | 298 | 1,169 | 1,182 |
| Industrial Solutions Deliveries | ||||
| Ammonia2 | 142 | 152 | 543 | 625 |
| Urea2 | 407 | 420 | 1,577 | 1,792 |
| Nitrate3 | 240 | 281 | 1,069 | 1,146 |
| CN | 56 | 125 | 348 | 434 |
| Other products5 | 528 | 507 | 1,944 | 2,028 |
| Water content in industrial ammonia and urea | 408 | 426 | 1,605 | 1,811 |
| Total Industrial Solutions Deliveries | 1,781 | 1,910 | 7,086 | 7,837 |
1 The Africa and Asia business also includes Oceania
2 Pure product equivalents
3 Including AN Solution
4 Including sulfuric acid, ammonia, and other minor products