Yara reports a second quarter net income after minority interest of NOK 811 million (NOK 2.54 per share), compared with NOK 521 million (NOK 1.63 per share) for the second quarter last year. Second quarter operating income was NOK 901 million (NOK 617 million), while EBITDA for the same quarter was NOK 1,416 million (NOK 1,062 million).
"Ammonia and urea prices increased during the quarter, and average prices for nitrogen products were at a high level," says Thorleif Enger, President and CEO of Yara International ASA. "Our second quarter cash flow was very strong as higher earnings were accompanied by a reduction in the net operating capital and low capital expenditures. This resulted in a substantial decrease in net interest-bearing debt," says Mr. Enger.
Net interest-bearing debt at the end of second quarter 2004 was NOK 4,516 million, down from NOK 6,392 million at the end of first quarter and from NOK 7,584 million at the end of December 2003.
All three of Yara's business segments performed well during the second quarter. The Upstream segment nearly doubled its EBITDA compared with the same quarter last year due to high prices, strong production performance and stable energy cost. The Downstream segment saw improved margins and an increase in volumes in Europe, while sales were reduced in regions with low margin products.The Industrial segment delivered a 30% increase in EBITDA compared with the same quarter last year, with volume growth for most products.
"Strong grain fundamentals create a good demand for mineral fertilizer," says Thorleif Enger. "However, additional new production capacity in the next couple of years is expected to be higher than historical growth in demand."
The quarterly figures reflect official accounts while the historical figures are pro forma since the demerger from Norsk Hydro took place on 25 March 2004.
For further information
The entire quarterly report and the presentation material used during the press and analyst conference are available on
Financial calendar
15 October Third quarter results
19 November Yara Capital Markets Day, Oslo
Contact
Egil Hogna, Investor Relations Arne Cartridge, Media Relations
Telephone (+47) 24 15 71 66 (+47) 24 15 73 01
Cellular (+47) 90 187 865 (+47) 47 900 900
Yara International ASA is the world's leading supplier of mineral fertilizers with particular strength in nitrogen based fertilizers. Yara has a local presence in 50 countries worldwide. Yara sells more than 20 million tonnes of mineral fertilizers in more than 120 countries. Yara offers fertilizers meeting the nutrient needs of local crops supported by agronomic advice to make farming more profitable and agriculture more sustainable. Yara has a strong position in industrial markets in Europe as a supplier of nitrogen based chemicals and is the leading supplier of liquid CO2.