Yara has reported improved fourth-quarter results as increases in prices more than offset the impact of higher energy cost. Fourth-quarter EBITDA excluding special items 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 returns 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.