All Posts from July 18, 2012

Yara reports strong 2Q results

Citing increased fertilizer sales volumes and improved urea margins, Yara International ASA on July 18 reported second-quarter net income after non-controlling interests of NOK 2,800 million (NOK 9.86 per share), compared with NOK 2,225 million (NOK 7.73 per share) last year.

Excluding net foreign exchange gain and special items, the result was NOK 10.84 per share, compared with NOK 7.84 per share in second quarter 2011. Second-quarter EBITDA excluding special items was NOK 5,196 million, compared with NOK 3,540 million last year.

“Yara reports strong second-quarter results, reflecting a strong nitrogen fertilizer market and a significant increase in sales of Yara-produced fertilizer, especially outside Europe," said Jørgen Ole Haslestad, president and CEO. “Our value-added nitrate and NPK business continues to perform well, and we are also improving our commodity cost position with production growth in Pilbara and Qafco. With these initiatives, Yara’s gas and oil consumption outside Europe increases to almost 45 percent of the Yara total.”

Global Yara fertilizer deliveries were up 6 percent from second quarter 2011, while sales of Yara-produced fertilizer increased by 14 percent. Nitrate sales were up 13 percent from last year’s second quarter, reflecting increased sales in Europe and Latin America. Yara’s global energy costs declined 7 percent compared with second quarter last year.

Nitrogen fertilizer industry deliveries for the 2011/12 season in Western Europe were 10 percent lower than a year earlier, as cold and dry spring planting conditions impacted overall consumption. However, Yara said it continued to take advantage of its ability to export premium products to overseas markets and ended the season with European stocks below a year earlier.

Second-quarter nitrogen fertilizer deliveries in Europe were primarily for immediate consumption, Yara reported, but pre-buying incentives for the new season are stronger than a year ago given the recent strengthening of grain prices.

Locals deny zoning to fertilizer plant

The Scott County, Iowa, Planning and Zoning Commission voted 6-1 on July 17 against the rezoning of 318 acres for Egypt’s Orascom Construction Industries (OCI) to build a $1.5 billion nitrogen plant. The Commission met before a standing-room only crowd, and some 50 people spoke for and against the plant, according to the local press. Per OCI’s approval, the plant will now go before the Scott County Board of Supervisors for a decision in August. A new venue that can accommodate a larger crowd is being sourced for that meeting. The site is currently agricultural and would be rezoned heavy industrial for the new plant.

Agrium boosts earnings projections

Agrium Inc. said today that it expects its second quarter earnings to be in the range of $5.40 to $5.50 diluted earnings per share and the first half earnings to be in the range of $6.72 to $6.82 diluted earnings per share. The estimate excludes hedging gains or losses and share-based payments expense in our first quarter actual results and estimated second quarter results. This revised earnings estimate is approximately 15 percent higher than the previously announced second quarter guidance level and would represent a record earnings for the second quarter and the first half of the year.

“The increase in expected earnings is due to excellent results across our entire crop input business, resulting from the continuation of robust demand through June, despite the very early start to the spring season. As a result, the second quarter EBITDA for all three business units is expected to be higher than the same period last year. The outlook remains very positive, supported by the significant increase in grain and oilseed prices globally due to adverse weather in the U.S. and an expected tightening in international crop input markets. Detailed financials and more color on our results and the outlook for our business and sector will be provided in our second quarter financial results on Aug. 2, 2012,” said Mike Wilson, Agrium President and CEO.