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Yara International Q4 net income NOK 1,860 million

Staff writer ▼ | February 13, 2015
Yara International ASA delivered strong fourth-quarter results, with margins benefiting from lower European gas prices and a stronger US dollar. Yara reports fourth quarter net income after non-controlling interests of NOK 1,860 million (NOK 6.74 per share).
Yara International
Yara International ASA   NOK 6.74 per share
Yara's board will propose to the Annual General Meeting a dividend payment of NOK 13 per share for 2014.

Yara reports fourth-quarter net income after non-controlling interests of NOK 1,860 million (NOK 6.74 per share), compared with NOK 63 million (NOK 0.23 per share) a year earlier. Excluding net foreign exchange loss and special items, the result was NOK 8.17 per share compared with NOK 2.80 per share fourth quarter 2013. Fourth-quarter EBITDA excluding special items was NOK 4,528 million compared with NOK 2,360 million a year earlier.

Yara's fertilizer deliveries were up 7% from fourth quarter 2013, mainly due to the acquisition of OFD in Latin America which was completed 1 October. Ex¬cluding OFD, deliveries are up 2%, driven by a 7% increase in deliveries outside Europe. Industrial sales volumes increased by 3% compared with fourth quarter 2013.

Yara's margins benefited from lower energy costs and a stronger US dollar during the fourth quarter. While Yara's global average oil and gas cost decreased 17% in the fourth quarter, Yara's average realized urea prices increased 5% compared to a year ago and realized nitrate and NPK prices were at the same level as last year. Industrial margins increased for all main product groups except technical ammonium nitrate.

Global nitrogen demand remained strong during the fourth quarter. Season to date industry deliveries are higher than the previous season both in Europe and the US, and Yara enters the first quarter with a strong European order book. A weaker euro and lower gas prices have improved the relative competitiveness of European fertilizer capacity.

Based on current forward markets for oil products and natural gas, Yara's European energy costs next two quarters are expected to be NOK 2 billion lower than a year earlier.