Yara International ASA, Oslo, reported a first-quarter net income of $14 million ($0.05 per share) after non-controlling interests, compared with a $119 million net loss (-$0.43 per share) a year earlier. Earnings per share excluding currency effects and special items were $0.80, versus $0.39 per share in first-quarter 2020.
Revenue was up 10 percent, at $3.14 billion from $2.85 billion the previous year, while EBITDA excluding special items increased by 16 percent to $585 million, up from $504 million.
Yara attributed the increase in EBITDA excluding special items as mainly reflecting improved pricing more than offsetting higher natural gas costs, as well as continued growth in premium product sales.
But the adjusted EBITDA for the first quarter missed estimates, with the average analyst estimate at $598.8 million (range $540.0 million to $678.0 million), according to a Bloomberg consensus.
Yara shares fell as much as 4.4 percent in Oslo following the missed estimates, the steepest intraday decline since November, Bloomberg reported.
“The Yara organization continues to perform well in a demanding environment,” said Yara International President and CEO Svein Tore Holsether.
“Our cash flow also continued to improve, with $2.7 billion of free cash flow generated over the last four quarters. We will consider further cash returns in the coming quarters, in line with the company’s allocation policy,” he said.
Yara said the net foreign currency translation loss in the quarter was $45 million lower than a year ago, and stems primarily from internal funding positions, mainly in Euro against the Norwegian krone and in Brazilian real against both Euro and Norwegian krone.
Fertilizer delivery volumes were marginally off at 6.84 million mt in the first quarter, versus the year-ago 6.85 million mt. Industrial deliveries were up 3 percent on the year, at 1.77 million mt.
Looking ahead, Yara said industry fundamentals are “robust,” as “the twin challenges of resource efficiency and environmental footprint” require significant transformations within both agriculture and the hydrogen economy. The company’s leading food solutions and ammonia positions are well placed to both address and create business opportunities from these challenges, it said.
Yara highlighted that its market environment is in “a positive trend,” with increasing food prices creating stronger planting and crop nutrition incentives for farmers.
“Nitrogen fertilizer markets are robust, with significantly higher prices than a year ago reflecting both stronger demand and limited new supply,” said Yara. “The company’s industrial business has also picked up, following weaker demand during the start of the pandemic.”
The company sees natural gas costs for the second and third quarters of 2021 as expected to be $180 million and $220 million, respectively, higher than a year earlier.
Yara Production and Deliveries
| ‘000 mt | 1Q-2021 | 1Q-2020 |
| Production | ||
| Ammonia | 1,792 | 1,924 |
| Finished fertilizer and industrial products (excluding bulk blends)1 | 5,159 | 5,310 |
| Yara Deliveries | ||
| Ammonia trade | 458 | 421 |
| Fertilizer | 6,841 | 6,847 |
| Industrial product | 1,767 | 1,721 |
| Total deliveries | 9,065 | 8,989 |
1 Including Yara share of production in equity-accounted investees, excluding Yara-produced blends
Yara premium products & YaraVita deliveries
| 1Q-2021 | 1Q-2020 | Percent change 1Q21/1Q20 | 1Q-2019 | |
| Premium products1 (million mt) | 4.1 | 4.0 | +3.0 | 3.3 |
| YaraVita (million units) | 13.4 | 11.3 | +19 | 10.5 |
1 Premium products comprise nitrates (AN, CAN), calcium nitrate (CN), Amidas (sulfur grade urea), NPKs, YaraVita and fertigation products.
Yara Deliveries
| ‘000 mt | 1Q-2021 | 1Q-2020 |
| Crop Nutrition Deliveries | ||
| Urea | 1,368 | 1,426 |
| Nitrate | 1,593 | 1,670 |
| NPK | 2,446 | 2,375 |
| CN | 477 | 398 |
| UAN | 383 | 356 |
| DAP/MAP/SSP | 141 | 148 |
| MOP/SOP | 149 | 126 |
| Other products | 282 | 349 |
| Total Crop Nutrition Deliveries | 6,841 | 6,847 |
| Europe Deliveries | ||
| Urea | 293 | 308 |
| Nitrate | 1,156 | 1,269 |
| NPK | 924 | 938 |
| CN | 137 | 110 |
| Other products | 412 | 445 |
| Total Deliveries Europe | 2,922 | 3,070 |
| Americas Deliveries | ||
| Urea | 630 | 621 |
| Nitrate | 367 | 361 |
| NPK | 1,113 | 1,057 |
| CN | 296 | 250 |
| DAP/MAP/SSP | 102 | 110 |
| MOP/SOP | 119 | 102 |
| Other products | 241 | 246 |
| Total Deliveries Americas | 2,867 | 2,747 |
| North America | 958 | 860 |
| Brazil | 1,452 | 1,466 |
| Latin America excluding Brazil | 457 | 421 |
| Africa & Asia Deliveries1 | ||
| Urea | 446 | 497 |
| Nitrate | 70 | 39 |
| NPK | 410 | 381 |
| CN | 45 | 38 |
| Other products | 81 | 74 |
| Total Deliveries Africa & Asia | 1,052 | 1,030 |
| Of which: | ||
| Asia | 811 | 793 |
| Africa | 240 | 237 |
| Industrial Solutions Deliveries | ||
| Ammonia2 | 150 | 141 |
| Urea2 | 396 | 409 |
| Nitrate3 | 280 | 276 |
| CN | 47 | 42 |
| Other products5 | 406 | 370 |
| Water content in industrial ammonia and urea | 487 | 482 |
| Total Industrial Solutions Deliveries | 1,767 | 1,721 |
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