The new tax legislation in Norway will reduce deferred tax expense for the fourth quarter with approximately NOK 140 million. Yara had at the end of third quarter provided for deferred tax related to the share of net income in Qafco (25% ownership). After the implementation of participation exemption for capital gains and dividends in the Norwegian tax legislation, only the tax provision related to Qafco shares owned directly from Norway (10%) has to be maintained.
The EBITDA effect of the increased provisions for Africa is approximately NOK 80 million (NOK 52 million after tax) and will be charged to the Downstream segment. In the fourth quarter, Yara has taken a number of actions to limit the consequences of escalating political conflict in the Ivory Coast.
Yara will also change the principle for allocation of overhead costs between the segments. The change will be neutral to overall Yara results, but will imply a reduction of fourth quarter EBITDA for each of the segments Upstream and Downstream by some NOK 30 million and a corresponding improvement of "Other and Elimination" of some NOK 60 million. The segment figures for previous quarters in 2004 and historical figures will be revised to reflect the new allocation principle in order to provide comparable financial information.
Yara will disclose its fourth quarter results on February 18, 2005 at 08.30 CET.
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Contact |
Hallgeir Storvik, CFO
Telephone (+47) 24 15 71 55
Cellular (+47) 92 825 934
E-mail: hallgeir.storvik@yara.com
Arne Cartridge, Media Relations
Telephone (+47) 24 15 73 01
Cellular (+47) 47 900 900
E-mail arne.cartridge@yara.com