Global fertiliser major Yara International reports fourth quarter EBITDA excluding special items of US$ 519 million compared with US$ 576 million in fourth quarter 2023. Fourth quarter 2024 results were impacted by several non-cash effects, including negative special items of US$ 170 million in operating income and a currency loss of US$ 260 million. This resulted in a negative net income in fourth quarter of US$ 290 million, compared with positive US$ 246 million a year earlier.

Fourth Q424 highlights:

* Record production and safety performance, and delivering on cost improvements.

* EBITDA of US$519 million with lower prices, but improving markets into 2025.

* NOK 5 per share annual dividend proposed.

* Top priority is increasing free cash flow and shareholder returns. 

“Yara’s operational performance this quarter is strong, with record-high production and safety performance. This marks a significant milestone in our continuous work to improve safety and resilience in Yara. We’re also progressing well on our cost and capex reduction program, with a USD 90 million reduction achieved in 2024,” said Svein Tore Holsether, President and Chief Executive Officer.

Net income for fourth quarter 2024 is impacted by several non-cash effects, including currency translation loss, impairments and pension buy-out, totaling to US$ 430 million before tax. While a strengthening of the US dollar triggers a currency translation loss on US debt positions, a stronger US dollar is fundamentally positive for Yara’s business, as nitrogen margins are largely USD-driven. Going forward, the combination of strict capital discipline and a tightening nitrogen market, is set to strengthen Yara’s financial position, driving increased free cash flow and sustainable profitability. This in turn will enable funding of value-accretive growth and increased shareholder returns.

“Yara’s key priority is to create value for its shareholders, and our capital allocation strategy is driven solely by the goal of maximizing long-term value. By prioritizing our core business and focusing on higher-return operations, we will ensure a fit-for-future Yara,” said Holsether.