Yara reports strong first-quarter results

Oslo — Yara International ASA reported strong first-quarter results as sales volumes returned to normal levels and margins remained healthy. Yara said following a slow first half of the Northern hemisphere season, activity levels in global nitrogen markets have increased and prices have strengthened significantly. First-quarter net income after non-controlling interests was NOK 3,020 million (NOK 10.58 per share), compared with NOK 2,889 million (NOK 10.02 per share) last year. Revenues moved up to NOK 21,303 million from the year-ago NOK 19,806 million. "Yara reports strong first-quarter results, as margins remained healthy and European deliveries picked up," said Jørgen Ole Haslestad, president and CEO. "As expected, Northern hemisphere fertilizer demand is strengthening following a slow first half of the buying season. This recovery is needed to avoid a further decline in global grain stocks." Total fertilizer volumes were just below year-ago numbers at 5.43 million mt versus 5.47 million mt, while industrial tons were up 14 percent, to 1.22 million mt from 1.07 million mt. Global Yara fertilizer deliveries were in line with first quarter 2011, while own-produced product sales increased. Nitrate sales volumes increased (1.47 million mt versus 1.41 million mt), while NPK (1.61 million mt versus 1.81 million mt) and urea (1.24 million mt versus 1.29 million mt) volumes decreased slightly. UAN volumes were up at 391,000 mt from 346,000 mt, while CN was down slightly at 232,000 mt from 237,000 mt. Increased industrial volumes reflected growth in environmental products and technical ammonium nitrates. Stock levels remained high during the first part of the quarter, but decreased sharply in March as demand picked up strongly. Season-to-date nitrogen fertilizer industry deliveries in Western Europe are 12 percent behind a year earlier, and Yara said full-season deliveries are likely to fall short of the previous season, as cold and dry spring planting conditions are likely to impact overall consumption. However, Yara saw record European deliveries in March, and satisfactory deliveries so far in April.