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approach, the evaluation of a potential future listing is focused on attracting
minority investors and reflects Yara’s strategic ambition to enable the hydrogen
economy, where clean ammonia will play a crucial role within zero-emission
shipping fuels, power generation, green fertilizer production and other
industrial applications.
YCA was established as a separate segment and business unit in February 2021 to
focus on clean ammonia, i.e. green and blue ammonia [1]. Subsequently, Yara
communicated that YCA would be set up as a separate legal entity and that Yara
would maintain majority ownership. A potential IPO would raise capital to
accelerate the growth of YCA, visualize the value of the business better and
support increased management focus - for both YCA and Yara.
“The decision to evaluate a potential IPO of Yara Clean Ammonia represents a
natural next step as Yara executes its strategy to broaden its business model.
YCA remains core to Yara’s strategy and Yara will continue to provide long-term
backing to YCA as its majority owner and preferred partner,” said Svein Tore
Holsether, CEO and President of Yara. “As the world’s largest ammonia
distributor - backed by own production assets and logistics infrastructure -
Yara and YCA are uniquely positioned to capture value and take a leading
position in the clean ammonia market.”
YCA is uniquely positioned to capture growth opportunities within clean ammonia
production, transportation, and distribution. At the core of YCA is its leading
midstream ammonia position; a global logistics and infrastructure network with a
20% market share [2] in the merchant ammonia market, covering operations from
sourcing to sales. YCA sourced, transported and sold more than 4 million tonnes
of ammonia in 2021. YCA’s Earnings Before Interest, Taxes, Depreciation, and
Amortization (“EBITDA”) for the last 12 months was USD 166 million as per Q1
2022 [3]. Building on its competitive strengths, YCA has defined an ambitious
growth strategy to expand both upstream, midstream and downstream in the clean
ammonia value chain. As part of this strategic roadmap, YCA has built a robust
project pipeline with significant investment decisions targeted over the next
three years.
Clean ammonia offers a solution to the decarbonization of hard-to-abate sectors,
such as shipping, power generation and agriculture. New use-cases represent
major opportunities on top of the existing structurally robust ammonia market,
with the size of the global ammonia market expected to more than double in
volume by 2050 [4]. This is anticipated to lead to shifts in trade flows and
increased trading of ammonia, which will significantly increase the importance
of YCA’s midstream value chain position.
As a preparatory step in the event of a potential future IPO, Yara will initiate
an internal process to organize YCA assets, contracts etc. into dedicated YCA
entities/subsidiaries that, for now, will remain under Yara’s ownership.
ABG Sundal Collier and J.P. Morgan have been retained by Yara to advise on the
evaluation of a potential IPO of YCA.
Webcast and conference call:
A presentation providing an introduction to Yara Clean Ammonia is available at:
Yara Clean Ammonia Investor Presentation | Yara International
An on-line presentation will be held today at 13:00 CEST, hosted by Yara
President and CEO Svein Tore Holsether and CEO of Yara Clean Ammonia Magnus
Krogh Ankarstrand. The presentation will be held in English. The webcast will be
available at the above mentioned time using the following link:
Yara Clean Ammonia Investor Presentation | Yara International
There will also be a conference call today at 13:30 CEST with an opportunity to
ask questions to Yara’s and Yara Clean Ammonia’s management.
Please use the following link to register online for the conference call:
http://emea.directeventreg.com/registration/4454425
- Participants must register in advance of the conference using the link
provided. Upon registering, you will be provided with participant dial-in
numbers, Direct Event passcode and unique registrant ID.
- In the 10 minutes prior to call start time, you will need to use the
conference access information provided in the email received at the point of
registering.
- Note: Due to regional restrictions some participants may receive operator
assistance when joining this conference call and will not be automatically
connected.
End notes:
- Clean ammonia comprises both blue and green ammonia. Blue ammonia is
derived from blue hydrogen, produced based on natural gas, with the CO(2) stored
in permanent reservoirs after a carbon capture and storage process (CCS). Green
ammonia is produced carbon-free by using green hydrogen produced based on
renewable energy.
- YCA’s approximate market share of merchant/traded ammonia in 2020 based on
company estimates.
- Financial figures are presented according to Yara’s segment reporting, and
is expected to deviate from YCA’s combined financials as a stand-alone company.
Explanations, definitions and reconciliations of alternative performance
measures are included in Yara’s annual and quarterly reports (yara.com).
- Expected market developments based on Arkwright estimates.
Contacts:
Silje Nygaard
Head of Investor Relations, Yara
Mobile: +47 957 04 843
E-mail: silje.nygaard@yara.com
Hilde Steinfeld
Communications Director, Yara Clean Ammonia
Mobile: +47 993 53 030
E-mail: hilde.steinfeld@yara.com
About Yara
Yara grows knowledge to responsibly feed the world and protect the planet.
Supporting our vision of a world without hunger and a planet respected, we
pursue a strategy of sustainable value growth, promoting climate-friendly crop
nutrition and zero-emission energy solutions. Yara’s ambition is focused on
growing a nature positive food future that creates value for our customers,
shareholders and society at large and delivers a more sustainable food value
chain.
To achieve our ambition, we have taken the lead in developing digital farming
tools for precision farming and work closely with partners throughout the food
value chain to improve the efficiency and sustainability of food production.
Through our focus on clean ammonia production, we aim to enable the hydrogen
economy, driving a green transition of shipping, fertilizer production and other
energy intensive industries.
Founded in 1905 to solve the emerging famine in Europe, Yara has established a
unique position as the industry’s only global crop nutrition company. We operate
an integrated business model with around 17,000 employees and operations in over
60 countries, with a proven track record of strong returns. In 2021, Yara
reported revenues of USD 16.6 billion.
www.yara.com
About Yara Clean Ammonia (YCA)
Yara grows knowledge to responsibly feed the world and protect the planet. Yara
Clean Ammonia is uniquely positioned to enable the hydrogen economy in a market
expected to grow substantially over the next decades. We aim at significantly
strengthening our leading global position as the world’s largest ammonia
distributor, unlocking the green and blue value chains, and driving the
development of clean ammonia globally.
Building on Yara’s leading experience within global ammonia production,
logistics and trade, Yara Clean Ammonia works towards capturing growth
opportunities in low-emission fuel for shipping and power, carbon-free food
production and ammonia for industrial applications.
Yara Clean Ammonia operates the largest global ammonia network with 12 ships and
has access to 18 ammonia terminals and multiple ammonia production and
consumption sites across the world, through Yara. EBITDA for the last 12 months
was USD 166 million as per Q1 2022(3). Yara Clean Ammonia is headquartered in
Oslo, Norway.
www.yaracleanammonia.com (http://www.yaracleanammonia.com)
This information is considered to be inside information pursuant to the EU
Market Abuse Regulation and is subject to the disclosure requirements pursuant
to Section 5-12 the Norwegian Securities Trading Act. This stock exchange
announcement was published by Silje Ingeberg Nygaard, Head of Investor Relations
at Yara International ASA, on 4 May 2022 at 08:00 CEST.
Not for release, publication or distribution, in whole or in part, directly or
indirectly, in or into Australia, Canada, Japan or the United States. This
announcement does not contain or constitute an offer of, or the solicitation of
an offer to buy or subscribe for, securities to any person in Australia, Canada,
Japan or the United States or in any jurisdiction to whom or in which such offer
or solicitation is unlawful. Any securities referred to herein may not be
offered or sold in the United States absent registration under the US Securities
Act of 1933, as amended (the “Securities Act”) or another exemption from, or in
a transaction not subject to, the registration requirements of the Securities
Act. Any offer and sale of the securities referred to herein has not been and
will not be registered under the Securities Act or under the applicable
securities laws of Australia, Canada or Japan. There will be no public offer of
the securities in the United States.
Kilde
