Norwegian Yara has reported record financial performance from FY2005.

Net income after minority interest was NOK3.198m compared with NOK3.794m last year. Excluding foreign exchange gains/losses, net income after minority interest was NOK3.560m compared with NOK3.288m last year.

The company said: \\$quot;The improvement was mainly due to improved fertilizer prices, however this was partially offset by an increase in European energy costs.\\$quot;

Operating income was NOK3.821 m and EBITDA was NOK6.618m compared with NOK6.108 last year. Yara\\$quot;s revenue and other income was NOK46.6bn in 2005, an increase of eight per cent compared with 2004.

Net cash from operating activities in 2005 was NOK3.106m, mainly reflecting strong earnings and dividends of NOK702m received from non-consolidated investees. Net cash from operating activities in 2004 was NOK4.096m. Yara says the reduction from last year was mainly due to higher tax payments and a net operating capital increase.

Industrial segment

Yara\\$quot;s industrial segment, which markets nitrogen chemicals and gases for industrial purposes, operating income for 2005 was NOK515m compared with NOK448m in the same period last year.

EBITDA was NOK720m compared with NOK696m in 2004. Sales of nitrogen chemicals and environmental products grew and technical ammonium nitrate margins improved as coal and mineral mining activity continued to increase.

Outlook for 2006

Yara says that global grain inventories are again expected to decrease in 2006. \\$quot;This is a concern, particularly for populous Asian countries where grain inventories are lowest.\\$quot;

The necessary level of investments to maintain current capacity is estimated to be NOK800-1000m per year. Yara\\$quot;s total investment level in 2006 could be significantly higher depending on the attractiveness of growth opportunities.