Increased sales in Asia and Latin America helped offset delayed fertilizer deliveries to Europe and North America in the fourth quarter ending Dec. 31, 2006, according to Yara International. Production improvements and industrial growth also contributed. Fourth-quarter net income after minority interest was US$140 million ($.47 per share) on sales of $1.94 billion, versus the year-ago $89 million ($.29 per share) and $1.88 billion. EBITDA was up to $212 million from $208 million.
Fourth-quarter fertilizer volumes were up, at 5 million mt versus the year-ago 4.7 million mt. Fertilizer tons to Europe were off 11 percent. Industrial tonnage was up, at 635,000 mt from 575,000 mt.
For the year ending Dec. 31, net income was $656.4 million ($2.17 per share) on sales of $7.56 billion, versus 2005’s $498.9 million ($1.59 per share) and $7.26 billion. Annual EBITDA was off slightly, at $1.014 billion from 2005’s $1.033 billion.
Fertilizer tons sold in 2006 were up slightly, at 19.25 million mt from last year’s 19.23 million mt. For the year, tonnage to Europe was off 1.5 percent. Industrial tons were up, at 2.38 million mt versus 2.18 million mt.
Yara noted India’s increasing appetite for urea in particular, with an estimated import of 4 million mt in 2006, compared to 2.3 million mt in 2005 and .8 million in 2004.
Yara noted that it completed its public offer to acquire all non-voting shares in Fertibras in January 2007. As a result, Fertibras has been delisted from the Brazilian stock exchange and is 100 percent owned by Yara. It will be merged into Yara Brazil during the first half.
Yara said it restructured its ownership of SQM during the fourth quarter, leaving overall ownership unchanged, but recording a $10 million gain on the sale of shares.
Also in the fourth quarter, Yara took a $12 million charge for the closure of a UAN plant in France (owned together with Grande Paroisse). The closure is scheduled to take place in mid-2008.