Oslo, 19 July 2022: Yara offers improved yields with higher prices and a good performance abroad assets, more than compensatedting upper European raw material costs and lower deliveries. Second– quarterly operating result1 was 1 USD,223 million against USD 477 million a year earlier.
“Yara’s business model remains resilient, and I want to thank the entire Yara organization for a significant new effort in a volatile market,” said Svein Tore Holsether, President and CEO of Yara. “However, there is a clear risk of nitrogen shortages and further price spikes if the gas situation in Europe deteriorates further,” Holsether said.
Second quarter EBITDA excluding. special items1 was $1,475 million, down from $775 million a year earlier. Net income attributable to parent company shareholders was $664 million ($2.61 per share) from $539 million ($2.10 per share) a year earlier.
Yara’s market environment is favorable, with the continuity of food production and related value chains remaining a top priority globally. However, the seasonal decline in demand in the Northern Hemisphere, combined with the recent spike in gas prices in Europe, is driving significant reductions across Europe, including at Yara. Yara has currently reduced several of its production plants, currently representing an annual capacity of 1.3 million tons of ammonia and 1.7 million tons of finished fertilizers.
Today, Yara is also releasing its first green finance framework, outlining its commitment to sustainability as an integral part of its strategy. Eligible green projects are expected to create substantial environmental benefits by decarbonizing the food chain, including fertilizer production and application, and limiting the need to expand agricultural land. CICERO provided a second-party opinion and rated the medium green frame. Framework link: https://www.yara.com/investor-relations/share-and-debt-information/debt-financing/
Yara’s resilient business model continues to generate strong returns, which translates into strong dividend capacity going forward, in line with Yara’s capital allocation policy. The company paid dividends of $796 million in Q2, and the board will consider further cash returns as part of Q3 results.
Link to the report, presentation and webcast of July 19 at 12:00 CEST:
1) For the definition and reconciliation of Alternate perPerformance measuressee the APM section in 2Report Q, page 34–40
Note on Alternative Performance Measures: Alternative performance measures are defined, explained and reconciled with the Financial Statements in the APM section of thee Quarterly report on pages 34–40.
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Yara develops her knowledge to responsibly feed the world and protect the planet. Supporting our vision of a world without hunger and a respected planet, we pursue a strategy of sustainable value growth, promoting climate-friendly crop nutrition and zero-emission energy solutions. Yara’s ambition is to develop a nature-friendly food future that creates value for our customers, shareholders and society as a whole and provides a more sustainable food value chain.
To achieve our ambition, we have taken the lead in developing digital agricultural tools for precision farming and are working closely with partners across the food value chain to improve efficiency and future proofYara Reports improved second– quarterly resultsfood production capacity. By focusing on clean ammonia production, we aim to enable the hydrogen economy, driving a green transition of shipping, fertilizer production and other energy-intensive industries.
Founded in 1905 to solve the emerging famine in Europe, Yara has established a unique position as the industry’s only global crop nutrition company. We operate an integrated business model with approximately 17,000 employees and operations in over 60 countries, with a proven track record of strong Return. In 2021, Yara made $16.6 billion in revenue.
This information is subject to the disclosure requirements in accordance with section 5-12 of the Norwegian Securities Act.
Yara 2Q Report 2022
Presentation Yara 2Q 2022