Yara reports second-quarter EBITDA excluding special items of US$ 513 million compared to US$ 252 million in second quarter 2023. Net income was US$ 3 million compared with a net loss of US$ 298 million a year earlier. To strengthen financial performance and improve shareholder returns going forward, Yara is initiating a cost and capex reduction program.

“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 program has been initiated, with aim to reduce fixed costs by US$ 150 million and capex with US$ 150 million by the end of 2025. This will be achieved through a targeted approach, prioritizing high-return core business, and scaling down tail-return activities. By optimizing 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 optimize our business, including our ammonia production and trade, and it positions Yara well for profitable decarbonization. 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.