Oslo, 20 October 2023: Third-quarter EBITDA excl. special items(1) was USD 396
million, compared with USD 1,001 million a year earlier. Net income was USD 2
million (USD 0 per share) compared with USD 402 million (USD 1.57 per share) in
…
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third quarter 2022.
The main elements of the third-quarter results are:
- EBITDA down 62% due to reduced margins
- Operating cash flow of 1 BUSD primarily due to operating capital release
- European nitrate price negatively impacted by long order book at start of 3Q
- Supportive fundamentals for full season but uncertain phasing of deliveries
“Third-quarter results are impacted by strong price declines compared to last
year, as the nitrogen industry continues to operate in a lower margin
environment. Although agricultural fundamentals are supportive, nitrogen markets
remain sensitive to geopolitical and commodity market volatility,” said Svein
Tore Holsether, President and Chief Executive Officer at Yara.
“War, geopolitical instability, and the climate crisis are having major impacts
on food security. It is therefore even more important to safeguard Europe’s
strategic autonomy in within food and fertilizer, and to accelerate the green
transition of European agriculture and industry,” said Holsether.
Nitrogen markets saw significant volatility in the third quarter, with the start
of the new northern hemisphere season. The quarter began with swift nitrogen
price responses to positive market news, with both improved demand and tighter
supply. Demand softened in the mid-quarter as urea prices declined and European
customers were reluctant to take further positions early in the new season.
Although the season for the European nitrogen industry is off to a slower start
than in previous years, fundamentals for the full season are supportive.
Agricultural conditions are favourable, and industry consultants forecast
increased cereal production in 2023/24, despite drought in several regions
earlier this year. Although fertilizer affordability reduced during the quarter,
it is still above historical averages, and optimal application rates are up
compared to the 22/23 season. However, as normal at this stage of the season,
phasing of deliveries is uncertain and there is risk of new nitrogen
curtailments if slow European demand continues. The energy transition, climate
crisis and food security are top priorities globally. With its leading food
solutions and ammonia positions, Yara is uniquely positioned to drive these
transformations.
Link to report, presentation and webcast 20th October at 12:00 CEST:
Latest quarterly report | Yara International
- For definition and reconciliation of Alternative Performance Measures, see
APM section in 3Q report, page 33.
Note on Alternative performance measures: Alternative performance measures are
defined, explained and reconciled to the Financial statements in the APM section
of the Quarterly report on pages 33-39.
Contact:
Maria Gabrielsen
Investor contact
Mobile: +47 920 90 093
E-mail: maria.gabrielsen@yara.com (mailto:maria.gabrielsen@yara.com)
Tonje Næss
Media contact
Mobile: +47 408 44 647
E-mail: tonje.nass@yara.com (mailto:tonje.nass@yara.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 Maria Gabrielsen, Head of Investor Relations, at
Yara International ASA, on 20 October 2023 at 08:00 CEST.
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 2022, Yara
reported revenues of USD 24 billion.
www.yara.com (http://www.yara.com)
This information is subject to the disclosure requirements pursuant to Section
5-12 the Norwegian Securities Trading Act
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