CORPORATE RELEASES
Yara strategy execution drives improved commercial margins and bottom line
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FEBRUARY 07, 2020
Oslo, 7 February 2020: Fourth-quarter net income after non-controlling interests was USD 199 million (USD 0.73 per share), compared with USD 157 million (USD 0.58 per share) a year earlier. Excluding currency effects and special items, the result was USD 0.80 per share compared with USD 0.60 per share in fourth quarter 2018. Yara’s Board of Directors will propose to the Annual General Meeting a dividend payment of NOK 15 per share for 2019.
Fourth-quarter EBITDA excluding special items was USD 525 million, up from USD 424 million a year earlier, mainly reflecting higher commercial margins, improved product mix and lower energy cost, more than offsetting the impact from lower commodity prices.
“Yara delivers improved results again, with fourth-quarter EBITDA excluding special items and IFRS 16 up 15%. The results mainly reflect improved commercial margins and lower gas cost,” said Svein Tore Holsether, President and Chief Executive Officer of Yara.
"I am pleased to see our crop nutrition focused strategy delivering results and that our free cash flow continues to increase, enabling us to deliver on our capital allocation policy with a substantial dividend increase," said Holsether.
Total Sales and Marketing deliveries were 5% lower compared with a year earlier, primarily reflecting a 9% reduction in deliveries in Europe. However, commercial margins were 6% higher versus a year earlier and fixed costs were lower. New Business deliveries were 2% lower. Yara’s ammonia production was down 2%, while finished fertilizer production was down 4% compared to a year earlier.
Yara’s near-term focus is on improving returns through strict capital allocation and driving operational excellence. Yara’s investments peaked in 2018, with revenues ramping up from 2019 onwards as growth projects come on stream and further operational improvements are realized. The Yara improvement program targets 4.2 million additional tonnes of production by 2023 compared with 2018, in addition to fixed cost savings and improvements within energy efficiency, variable cost and operating capital.
Yara’s Board of Directors will propose to the Annual General Meeting a dividend payment of NOK 15 per share for 2019. Yara plans to buy back 0.5% of its outstanding shares by the end of first quarter 2020. Including the proportional redemption of shares owned by the Norwegian state, the total buyback and redemption will amount to approximately 0.8% of shares outstanding, equivalent to approximately NOK 3 per share at the current share price.