Yara reports increasing fertilizer sales volumes
Yara International ASA reports increasing sales volumes for main fertilizer products except NPK, but fertilizer margins are substantially down from last year. Net interest-bearing debt continued to decrease, primarily reflecting lower operating capital.
Yara reports third-quarter net income after minority interest of NOK 349 million (NOK 1.21 per share), compared with NOK 3,175 million (NOK 10.91 per share) last year. Excluding net foreign exchange gains and special items, the result was approximately NOK 0.46 per share compared with NOK 14.71 per share in third quarter 2008. EBITDA for the quarter was NOK 860 million compared with NOK 6,089 million in third quarter 2008.
"Our third-quarter results were non-satisfactory, mainly due to NPK sales being hampered by high potash prices. However, fertilizer sales are picking up as pipeline effects come to an end and food demand growth remains robust. Farmers are increasing fertilizer purchases, but deliveries in Europe and North-America continue to be subdued by distributers still unwilling to build inventories for the spring application. With a cost position supported by lower gas costs in Europe, Yara has been able to take market share by running all available straight nitrogen fertilizer capacity", said Jørgen Ole Haslestad, President and Chief Executive Officer of Yara.
Third-quarter fertilizer deliveries were up 10% on last year. European fertilizer sales increased for all main product groups except NPK. Volumes outside Europe were up 27% primarily in Brazil and North America. Industrial margins improved strongly compared with third quarter 2008, reflecting strong commercial management and contract lag benefits. European oil and gas costs decreased in line with Yara's second quarter guidance, reflecting lower oil-linked and hub gas prices and Yara's decision to continue maximizing spot exposure in its energy contracts.
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