Yara reports second-quarter EBITDA

Second-quarter 2024 highlights:

• EBITDA excluding special items of 513 million US dollars, reflecting improved margins.
• Strong cash conversion with 500 million US dollars operating capital release.
• 150 million US dollars cost reduction and 150 million US dollars CAPEX reduction initiated.
• Financial position set to improve with cost reductions and tightening nitrogen supply.

“I’m pleased to see improved results, with higher margins and deliveries in a more stable price environment. However, returns are not at satisfactory levels. We have been through turbulent, volatile years which Yara has navigated well, but we now need to adjust our priorities and cost base, to improve Yara’s profitability,” said Svein Tore Holsether, President and Chief Executive Officer.

A cost and CAPEX reduction programme has been initiated, with the aim to reduce fixed costs by 150 million US dollars and CAPEX with 150 million US dollars by the end of 2025. This will be achieved through a targeted approach, prioritising high-return core business, and scaling down tail-return activities. By optimising costs and strengthening the balance sheet, Yara’s financial performance is set to improve, enabling funding of value-accretive growth and increased shareholder returns.

“Yara has unique competitive edges as an integrated nitrogen producer with a global asset footprint and downstream presence. This gives us scale, flexibility and optionality in how we optimise our business, including our ammonia production and trade, and it positions Yara well for profitable decarbonisation. With a sharpened strategic focus and growing demand for low-carbon crop solutions, Yara is set to increase value creation and shareholder returns going forward”, said Holsether.

Read the article online at: https://www.worldfertilizer.com/special-reports/19072024/yara-reports-second-quarter-ebitda/