Yara reports for the second quarter a net income after minority interest of NOK 1,041 million (NOK 3.42 per share), compared with NOK 846 million (NOK 2.68 per share) in the second quarter last year. Excluding net foreign exchange gain/losses, the result was approximately NOK 2.98 per share compared with NOK 3.18 per share in second quarter 2005. Second quarter operating income was NOK 924 million compared with NOK 1,117 million in the same quarter last year. EBITDA for the quarter was NOK 1,682 million compared with NOK 1,868 million in the second quarter last year.
"During the second quarter, Yara continued to deliver strong financial performance, despite increasing energy costs. Yara's energy arbitrage action in the second quarter supplements our expansion in low-cost gas regions, to counteract negative European energy cost developments," says Thorleif Enger, President and CEO of Yara International ASA.
Although total fertilizer deliveries in Western Europe were down, the Downstream segment achieved second quarter fertilizer sales up 2-3 percent from last year, further improving Yara's market position in Europe. The Industrial segment saw growth across all business areas in the second quarter, with a 13 percent overall volume increase compared to last year. In the Upstream segment, fertilizer production continued to increase and was 4 percent up from last year with the greatest contribution from joint venture operations.
Yara's gas cost in Europe is estimated to increase over the next two quarters. However, the increase in the proportion of Yara's gas sourced from low-cost regions is expected to reduce Yara's average gas cost from the second quarter peak.
A further drop in global grain stocks is forecasted from today's low level. The grain situation, together with projected increase in biofuel demand, is reflected in increasing forward prices for grain. Going forward, these factors continue to support global fertilizer demand.
New Yara Fertilizer Industry Handbook published
Yara has today released the 2006 edition of its Fertilizer Industry Handbook containing updated information about the fertilizer market and industry. The Handbook is a tool for analysts, investors, journalists and others who would like to understand the fertilizer industry and in particular the parts most relevant for Yara International.
The Fertilizer Industry Handbook can be downloaded with speaker notes from Yara's website: http://www.yara.com/en/investor_relations/presentations/fertilizer_handbook
For further information
The entire quarterly report and the presentation material used during the press and analyst conference are available on
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Contact |
Torgeir Kvidal, Investor Relations
Telephone (+47) 24 15 72 95
Cellular (+47) 91 339 832
E-mail torgeir.kvidal@yara.com
Hamed Brodersen, Media Relations
Cellular (+47) 40 468 110
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 6800 employees represents great diversity and talent enabling Yara to remain a leading performer in its industry.