OSLO, Norway, Feb. 17, 2006 (PRIMEZONE) -- Yara International ASA reports strong financial results for the fourth quarter and achieved for the first time an annual EBITDA above USD 1 billion. The result in the fourth quarter was lower than the record fourth quarter last year due to increased energy costs and unrealized currency losses related to USD funding. Yara has improved its market position in Europe and North America, and taken steps to rationalize its fertilizer operations in South Africa.
Yara reports for the fourth quarter a net income after minority interest of NOK 588 million (NOK 1.90 per share), compared with NOK 1,251 million (NOK 3.94 per share) in the fourth quarter last year. Excluding net foreign exchange losses, the result was approximately NOK 2.18 per share compared with NOK 3.06 per share in fourth quarter 2004. Fourth quarter operating income was NOK 651 million compared with NOK 914 million in the same quarter last year. EBITDA for the quarter was NOK 1,379 million compared with NOK 1,565 million in the fourth quarter last year. The results were positively influenced by derivative contracts under IFRS and negatively impacted by non-recurring costs. Adjusting for these special effects and for the currency losses, the underlying quarterly result was NOK 2.39 per share.
"Fertilizer prices remained strong through the quarter, but margins were lower than the record highs of 2004 due to increasing energy prices. This has led to several plant shutdowns among Yara's competitors, particularly in North America, U.K. and Eastern Europe where Yare does not have production," says Thorleif Enger, President and CEO of Yara International ASA, who expects the low global grain inventories and the growing demand for biofuels to support demand for fertilizer.
Full-year net income after minority interest was NOK 3,198 million (NOK 10.20 per share), compared with NOK 3,794 million (NOK 11.90 per share) for 2004. Excluding net foreign exchange gains/losses, the result was approximately NOK 11.36 per share compared with NOK 10.31 per share in 2004. Full year operating income was NOK 3,821 million, compared with NOK 3,708 million last year. EBITDA was NOK 6,618 million compared with NOK 6,108 million last year.
Yara's Downstream segment delivered a satisfactory result, but was not able to match the record level of fourth quarter last year. The main reasons were a difficult market situation in South Africa combined with restructuring costs and a lower nitrate margin in Europe compared with last year. Yara saw its market share in Europe increase in the quarter. The position in the North American market also strengthened during the year. Yara's Industrial segment saw continued growth in sales of liquid CO2 to European end-users, and the technical ammonium nitrate market showed improved prices and volume increases, both in Europe and overseas. Within the Upstream segment production continued at high levels. Production of both finished fertilizer and ammonia was up 6% compared with 2004, mainly due to the addition of Rossosh volumes. In Trinidad new 10-year gas contracts have been negotiated for Yara Trinidad and Tringen plants with effect from January 2004.
Change of Head of Investor Relations
From 1 March 2006 Torgeir Kvidal will take over as Head of Yara Investor Relations as Egil Hogna will take up a new management position in Yara. Torgeir Kvidal has broad experience from several positions in Yara, including CFO for the Industrial segment and Corporate Controller in Hydro. His contact details are listed below.
For further information
The entire quarterly report and the presentation material used during the press and analyst conference are available on http://www.yara.com/en/investor_relations/financial_reports/
Yara International ASA is a leading chemical company that converts energy and nitrogen from the air into essential products for farmers and industrial customers. As the number one global supplier of mineral fertilizers and agronomic solutions, we help provide food for a growing world population. Our industrial product portfolio includes environmental protection agents that safeguard air and water purity and preserve food quality. Yara's global workforce of 7,000 employees represents great diversity and talent enabling Yara to remain a leading performer in its industry.