Yara reports 1Q results
Yara International ASA reported first-quarter net income after non-controlling interests of NOK 2,800 million (NOK 10.22 per share), compared with the year-ago NOK 729 million (NOK 2.65 per share). Excluding net foreign exchange gain and special items, the result was NOK 9.14 per share compared with NOK 10.51 per share in first quarter 2015. First-quarter EBITDA excluding special items was NOK 5,050 million compared with NOK 5,742 million a year earlier.
“Yara reports strong results in a challenging market environment, even as weaker fertilizer prices and lower deliveries impacted earnings,” said Svein Tore Holsether, president and CEO. “Our operational performance improved compared with the fourth quarter, with both ammonia and finished fertilizer production running at high levels. In addition, lower natural gas cost in Europe continued to improve Yara’s competitive position during the quarter.”
Global Yara fertilizer deliveries were 5 percent lower compared with first quarter 2015, mainly reflecting lower nitrate and compound NPK sales. All regions except Brazil saw lower sales. In Europe, fertilizer deliveries were 9 percent lower than a year earlier, with nitrate deliveries down 18 percent and NPK compound deliveries down 5 percent. Industrial segment sales volumes were in line with first quarter 2015. Yara’s margins declined compared to first quarter last year, as realized prices fell more than input costs.
Yara’s average realized urea prices decreased around 20 percent, nitrate prices were 15 percent lower, and compound NPK prices decreased on average 12 percent compared with first quarter 2015. Yara’s average global gas costs were 32 percent lower than a year ago.