Yara International ASA reported net income after non-controlling interest of NOK 1,424 million (US$240.5 million), or NOK 4.93 per share ($.83 per share) on sales of NOK 13,791 million ($2.33 billion). This was a significant improvement over the year-ago negative NOK 2,109 million ($356.2 million), or NOK 7.27 ($1.23 per share), on sales of NOK 18,957 million ($3.2 billion).
“Our underlying fourth-quarter results were non-satisfactory,” said Jorgen Ole Haslestad, Yara president and CEO. “Global NPK sales continued to be hampered by high potash prices, and until November, European nitrate prices were held back by European distributors still unwilling to take positions for the spring application.
“We saw a major improvement in fertilizer markets toward the end of the fourth quarter, as global nitrogen and phosphate markets turned demand-driven. Increased global nitrogen prices stimulated demand from European distributors, enabling Yara to increase nitrate prices substantially with effect for January sales. Improved phosphate demand and falling potash prices have seen NPK sales pick up, and Yara’s NPK capacity has been fully utilized since the beginning of January.”
Yara said fourth-quarter fertilizer deliveries were up 37 percent versus the year-ago quarter. Fertilizer sales volumes were 4.8 million mt, versus the year-ago 3.5 million mt. Industrial volumes improved 15 percent from the year-ago period, at 1.045 million mt versus the year-ago 905,000 mt.
For the year, Yara net income was NOK 3,782 ($638.7 million), or NOK 13.08 per share ($2.21 per share) on sales of NOK 61,418 million ($10.4 billion), versus 2008’s NOK 8,228 million ($1.39 billion), or NOK 28.27 per share ($4.77 per share), on sales of NOK 88,775 million ($15 billion).
Full-year fertilizer volumes were 20.1 million mt, down only slightly from 2008’s 20.54 million. Industrial volumes were also down only slightly, to 3.76 million mt from 3.9 million mt.
Yara’s board has proposed a dividend payment of NOK 4.50 per share ($.76 per share) for 2009.