Norway's Yara Q1 net profit rises 4.5% on healthy margins

27 April 2012 08:25  [Source: ICIS news]

SINGAPORE (ICIS)--Yara International’s first-quarter 2012 net profit rose by 4.5% year on year to Norwegian kroner (NKr) 3.02bn ($527m, €401m) as sales volumes “returned to normal levels” and margins remained healthy, the fertilizer major said on Friday.

The firm’s revenue rose by 5.4% year on year to NKr20.9bn in the first quarter of this year, the company said.

Its earnings before interest, tax, depreciation and amortisation (EBITDA) – excluding special items – slipped by 7.6% to NKr3.94bn in the first three months of 2012 due to lower nitrate premiums and higher energy and raw material cost.

“Yara reports strong first-quarter results, as margins remained healthy and European deliveries picked up,” said Jorgen Ole Haslestad, president and CEO of Yara.

“As expected, northern hemisphere fertilizer demand is strengthening following a slow first half of the buying season. This recovery is needed to avoid a further decline in global grain stocks,” Ole Haslestad added.

In its outlook, Yara said that its ammonia and urea plant at Belle Plaine in Canada will undergo a mandatory turnaround in June, with production scheduled to be down for about a month.

($1 = NKr5.73 / $1 = €0.76)

By: Nurluqman Suratman

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