Scorecard for Yara | Finansavisen

– Despite higher deliveries this quarter, the result is weaker compared to the same period last year as a result of lower prices. However, we see positive effects from several of our decarbonisation projects, which is crucial to equip Yara for the future and enable us to meet the growing demand for low-carbon solutions, says CEO Svein Tore Holsether in Yara.

The fertilizer giant had an operating result before depreciation and amortization (EBITDA) of 435 million dollars in the first quarter, compared to 487 million dollars in the same period last year. In advance, an EBITDA of NOK 509 million was expected.

Profit after tax was 16 million dollars, equivalent to 0.07 dollars per share. share, compared to $105 million and $0.41 per share. share last year.

Demand-driven pricing

In the quarterly report, the company writes that prices are generally demand-driven, with positive production margins, even for swing producers, despite a strong supply of urea in 2023.

“Normal market conditions for the farmer and a 10-year consumption growth of 1.9 per cent per year are positive elements for the coming seasons. Although the peak for new production capacity has been passed, there is a large amount of urea in the market, primarily due to increased production in India and China. Lower supply growth is expected from 2024 onwards. This, together with increasing demand for nitrogen, indicates a future tightening in the nitrogen market,” it says.

– European nitrogen imports are now falling in line with increasing European production, but imports of Russian urea to Europe were historically high last season and now account for almost a third of total imports. At the same time as European industry is challenged by sanctions on raw materials and price pressure, Russia is gaining ever greater market influence. This not only challenges European industry and the green shift, but can also contribute to making European food production more vulnerable, comments Holsether.