Yara International ASA reports strong results for the second quarter 2006.
Increased energy costs were more than compensated by energy arbitrage gains, higher fertilizer prices, improved market positions for fertilizer and industrial products in Europe and currency gains
Yara reports for the second quarter a net income after minority interest of NOK 1,041 million (NOK 3.42 per share), compared with NOK 846 million (NOK 2.68 per share) in the second quarter last year.
Excluding net foreign exchange gain/losses, the result was approximately NOK 2.98 per share compared with NOK 3.18 per share in second quarter 2005. Second quarter operating income was NOK 924 million compared with NOK 1,117 million in the same quarter last year. EBITDA for the quarter was NOK 1,682 million compared with NOK 1,868 million in the second quarter last year.
"During the second quarter, Yara continued to deliver strong financial performance, despite increasing energy costs. Yara's energy arbitrage action in the second quarter supplements our expansion in low-cost gas regions, to counteract negative European energy cost developments," says Thorleif Enger, President and CEO of Yara International ASA.
The Industrial segment saw growth across all business areas in the second quarter, with a 13 percent overall volume increase compared to last year.
Yara's gas cost in Europe is estimated to increase over the next two quarters. However, the increase in the proportion of Yara's gas sourced from low-cost regions is expected to reduce Yara's average gas cost from the second quarter peak.