Yara reports strong operational performance and cost improvements
Published by Emilie Grant,
Editorial Assistant
World Fertilizer,
Yara reports Q4 EBITDA excluding special items1 of US$519 million compared with US$576 million in Q423. Q424 results were impacted by several non-cash effects, including negative special items of US$170 million in operating income and a currency loss of US$260 million. This resulted in a negative net income in Q4 of US$290 million, compared with positive US$246 million a year earlier.
Fourth Q424 highlights:
- Record production2 and safety performance, and delivering on cost improvements.
- EBITDA1 of US$519 million with lower prices, but improving markets into 2025.
- NOK 5 per share annual dividend proposed.
- Top priority is increasing free cash flow3 and shareholder returns.
“Yara’s operational performance this quarter is strong, with record-high production and safety performance. This marks a significant milestone in our continuous work to improve safety and resilience in Yara. We’re also progressing well on our cost and capital expenditure (CAPEX) reduction programme, with a US$90 million reduction achieved in 2024,” said Svein Tore Holsether, President and Chief Executive Officer.
Net income for Q424 is impacted by several non-cash effects, including currency translation loss, impairments and pension buy-out, totalling to US$430 million before tax. While a strengthening of the US dollar triggers a currency translation loss on US debt positions, a stronger US dollar is fundamentally positive for Yara’s business, as nitrogen margins are largely US$-driven. Going forward, the combination of strict capital discipline and a tightening nitrogen market, is set to strengthen Yara’s financial position, driving increased free cash flow and sustainable profitability. This in turn will enable funding of value-accretive growth and increased shareholder returns.
“Yara’s key priority is to create value for its shareholders, and our capital allocation strategy is driven solely by the goal of maximising long-term value. By prioritising our core business and focusing on higher-return operations, we will ensure a fit-for-future Yara,” said Holsether.
1EBITDA excluding special items. For definition and reconciliation see APM section in the Q4 report, pages 26 - 34).
2YIP production performance excluding Montoir.
3Net cash provided by operating activities minus net cash used in investment activities (see cash flow statement in the Q4 report, page 13).
Read the article online at: https://www.worldfertilizer.com/project-news/07022025/yara-reports-strong-operational-performance-and-cost-improvements/
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