Yara International ASA has reported its strongest quarterly results so far, mainly driven by strong demand expanding urea, nitrate and NPK margins, and further underlines the company’s healthy platform for future growth.
Yara recorded second-quarter net income after minority interest of NOK 4.415m (NOK 15.14 per share), compared with NOK 1.422m (NOK 4.85 per share) last year. Operating income was NOK 4.749m compared with NOK 1.329m in the same quarter last year. EBITDA for the quarter was NOK 6.300m compared with NOK 2.222m last year.
Thorleif Enger, President and CEO of Yara International ASA, reflected, “It is with great pleasure that I report Yara’s strongest quarterly earnings so far. Since the IPO in March 2004, Yara has delivered 18 consecutive quarters with earnings above cost of capital. The improvement this quarter is mainly driven by strong demand giving higher fertiliser prices, only partly offset by increased raw material costs.”
Clearly enthusiastic, Enger added, “We have over the last years initiated several significant growth initiatives and established a solid platform for growth in an attractive industry. The acquisition of Saskferco further strengthens Yara’s scale and position in North America by bringing in efficient production capacity in proximity to one of the key global fertiliser markets.”
Downstream segment sales increased 16% from second quarter last year. Excluding the effect of the Kemira GrowHow acquisition, underlying growth was 2%, mainly due to increased sales in Europe.
The industrial segment continues to see strong growth in most product groups, especially for technical ammonium nitrate, which was up 30%, and environmental products, which grew more than 50%. However, industrial margins were temporarily reduced by time lags in nitrogen chemical sales contract prices.