February 13, 2014
Yara''s Q4 2013 results down reflecting weaker prices
Yara International ASA reported lower fourth-quarter results, with weak commodity margins but robust value-added premiums and strong deliveries.
"Yara''s fourth-quarter results reflect weaker commodity fertiliser markets, but we report strong production volumes and deliveries, and the Industrial segment delivers higher sales and margins. Value-added product premiums remained robust compared with the strong decline in global nitrogen, phosphate and potash prices," said Jørgen Ole Haslestad, President and Chief Executive Officer in Yara.
The company reports fourth-quarter net income after non-controlling interests of NOK59 million (US$9.6 million), compared with NOK2,153 million (US$352 million) a year earlier. Excluding net foreign exchange loss and special items, the result was NOK2.64 (US$0.43) per share compared with NOK7.21 (US$1.18) per share in fourth quarter 2012. Fourth-quarter earnings before interests, taxes, depreciation and amortisations (EBITDA) excluding special items was NOK2,339 million (US$382.5 million) compared with NOK3,539 million (US$579 million) a year earlier.
Global Yarafertiliser deliveries were up 22% on fourth quarter 2012, as a result of increased sales in Brazil due to the inclusion of Bunge volumes, where Yara''s Nitrogen, Phosphorus, Potassium (NPK) blend volumes more than doubled. Global Yara nitrate deliveries were at the same level as last year, and up 4% in Europe with a positive development during the quarter. Compound NPK deliveries decreased 7%, due to reduced volumes in certain lower margin segments in Brazil and lower sales in Europe which were mainly related to phasing effects.
Yara''s average realised urea prices were 26% lower than a year ago. Realised nitrate and NPK compound prices decreased by 15% and 9% respectively, improving premiums over urea and other commodity fertilisers. NPK blend margins in Brazil were also significantly higher than last year.
Nitrogen fertiliser industry deliveries in Western Europe have recovered from a slow start to the new season, with fourth-quarter deliveries 8% higher than a year ago and season-to-date deliveries in line with a year ago. A continued strong farm margin situation and limited pipeline stocks at the start of the 2013-14 season point to healthy European nitrogen demand also for the remainder of the season. Yara entered 2014 with a strong European order book, implying a first-quarter nitrate price time lag of approximately two months.