Yara International ASA delivers improved results, proposes NOK 30 per share dividend
Yara reports improved fourth-quarter results as increases in prices more than offset the impact of higher energy cost. Fourth-quarter EBITDA excluding special items1 was USD 765 million compared with USD 511 million a year earlier. Net income was a negative USD 26 million compared with a positive USD 246 million a year earlier, as Yara recognized impairment losses of USD 250 million, of which USD 232 million is related to the Dallol mining project in Ethiopia. Excluding currency effects and special items, basic earnings per share1 was USD 1.19 compared with USD 0.76 per share in fourth quarter 2020. The main elements of the fourth-quarter results are:
- Increased margins reflect business model resilience
- 7.9% ROIC1, in line with a year earlier as impairments offset margin growth
- NOK 30 per share annual dividend proposed; total NOK 58 per share cash returns2 paid and proposed for 2021
"Yara delivers strong returns in a volatile environment, with EBITDA excluding special items up 50%. I would like to give credit to our entire organization for a solid effort", said Svein Tore Holsether, President and Chief Executive Officer of Yara.
"We propose a NOK 30 per share dividend to the annual general meeting, bringing our total cash distribution to shareholders for 2021 to NOK 58 per share", Holsether said.
Fourth-quarter operating income was USD 148 million, compared with USD 210 million a year earlier. Net income attributable to shareholders of the parent was USD 41 million (USD 0.16 per share) compared with USD 246 million (USD 0.93 per share) a year earlier.
Yara's industry fundamentals are robust, as the twin challenges of resource efficiency and environmental footprint require significant transformations within both agriculture and the hydrogen economy. Yara's leading food solutions and ammonia positions are well placed to both address and create business opportunities from these challenges.
Yara's market environment is supportive, with higher nitrogen prices globally reflecting both strong demand and a tight supply situation. However, high and volatile natural gas prices continue to pose a challenge for the nitrogen industry in Europe, adding to global food security concerns in a situation with already tight supply across the main nutrients.
Link to report, presentation and webcast 8 February at 12:00 CET:
https://www.yara.com/investor-relations/latest-quarterly-report/
1) For definition and reconciliation of Alternative Performance Measures, see APM section in 4Q report, page 31-36
2) Including NOK 20 additional dividend paid 3Q 2021 and share buybacks (included in the year of purchase, including the corresponding pro-rata redemption of shares from the Norwegian state)
Note on Alternative performance measures: Alternative performance measures are defined, explained and reconciled to the Financial statements in the APM section of the Quarterly report on pages 31-36.
Contact
Silje Nygaard
Head of Investor Relations
Mobile: +47 957 04 843
E-mail: silje.nygaard@yara.com
Josiane Kremer
Director External Communications
Mobile: +47 481 80 451
E-mail: josiane.kremer@yara.com
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. This stock exchange announcement was published by Silje Ingeberg Nygaard, Head of Investor Relations at Yara International ASA, on 8 February 2022 at 08:00 CET.
About Yara
Yara grows knowledge to responsibly feed the world and protect the planet. Supporting our vision of a world without hunger and a planet respected, we pursue a strategy of sustainable value growth, promoting climate-friendly crop nutrition and zero-emission energy solutions. Yara's ambition is focused on growing a nature positive food future that creates value for our customers, shareholders and society at large and delivers a more sustainable food value chain.
To achieve our ambition, we have taken the lead in developing digital farming tools for precision farming and work closely with partners throughout the food value chain to improve the efficiency and sustainability of food production. Through our focus on clean ammonia production, we aim to enable the hydrogen economy, driving a green transition of shipping, fertilizer production and other energy intensive industries.
Founded in 1905 to solve the emerging famine in Europe, Yara has established a unique position as the industry's only global crop nutrition company. We operate an integrated business model with around 17,000 employees and operations in over 60 countries, with a proven track record of strong returns. In 2021, Yara reported revenues of USD 16.6 billion.
www.yara.com
Attachments
- Yara 4Q 2021 Report
- Yara 4Q 2021 Presentation