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).