Yara has delivered improved returns in a tight market situation, where higher prices more than offset higher feedstock costs and lower deliveries. First-quarter operating income was USD 1,039 million compared with USD 322 million a year earlier.

 

“Yara’s business model is robust, and is performing well also in a volatile situation. I want to give credit to our employees for their hard work to sustain our operations and deliveries amid war, supply disruption and market price volatility”, said Svein Tore Holsether, President and Chief Executive Officer of Yara.

 

“Although Yara’s business is flexible and resilient, the impact of the war on global food security will be dramatic. We repeat our calls for government action to strengthen food supply chains and decrease dependency on Russia", Holsether said.

 

First-quarter EBITDA excl. special items was USD 1,346 million, compared with USD 585 million a year earlier. Net income attributable to shareholders of the parent was USD 944 million (USD 3.71 per share) compared with USD 13 million (USD 0.05 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.

 

The war in Ukraine is having major impacts on both the food and fertilizer industries, with Russia and Ukraine being significant in the global food value chain, representing a major portion of world’s production and export of grains. Furthermore, Russia is one of the world’s largest producers and exporters of essential crop nutrients and natural gas. Yara has stopped all sourcing from suppliers linked to Russian sanctioned entities and persons, and is utilizing its global sourcing, productions and distribution capabilities with the objective to keep supplying customers and secure continuity in food supply chains.

 

As a result of the high gas prices Yara curtailed production at several of its European ammonia and urea facilities in early March, but these have resumed production as the margin situation improved. While raw material price increases in isolation are negative for Yara, higher end product prices create offsetting positive effects, as higher grain prices improve farmers’ profitability and demand incentives for agricultural inputs.