Yara’s second-quarter net income rises 26% on increased sales

18 July 2012 10:07  [Source: ICIS news]

LONDON (ICIS)--Yara International's second-quarter net income rose 26% year on year to Norwegian kroner (NKr) 2.80bn ($461m, €375m), on the back of increased sales volumes, especially for its fertilizers, the Norway-based producer said on Wednesday.

Sales for the quarter were up 15% year on year to NKr21.4bn, the company added.

Yara said its margins strengthened compared with last year, primarily for urea reflecting a tight nitrogen fertilizer market.

Group earnings per share in the second quarter rose to NKr9.86 per share from NKr7.73 per share reported in the same period in 2011.

Second-quarter earnings, before interest, tax, depreciation and amortisation (EBITDA) excluding special items were NKr5.20bn, up 47% year on year.

"Yara reports strong second-quarter results, reflecting a strong nitrogen fertilizer market and a significant increase in sales of Yara-produced fertilizer, especially outside Europe," said Jorgen Ole Haslestad, president and CEO of Yara.

Yara said its global fertilizer deliveries were up 6% on the second quarter of 2011, while sales increased by 14%.

“Nitrate sales were up 13% on second quarter last year, reflecting increased sales in Europe and Latin America. Yara's global energy costs declined 7% compared with second quarter last year,” the company added.

In its outlook, the company said second-quarter nitrogen fertilizer deliveries in Europe were primarily for immediate consumption, but pre-buying incentives for the new season are stronger than a year ago, given the recent strengthening of grain prices.

($1 = NKr6.08, €1 = NKr7.47)

By: Franco Capaldo
+44 (0)20 8652 3214

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