Yara delivered improved returns with higher prices and a strong performance from overseas assets, more than offsetting higher European feedstock costs and lower deliveries.
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Second quarter operating income was USD 1,223 million compared with USD 477 million a year earlier.
“Yara’s business model remains resilient, and I would like to thank the whole Yara organization for another strong effort in a volatile marketâ€, said Svein Tore Holsether, President and Chief Executive Officer of Yara. “However, there is a clear risk of nitrogen shortages and further price spikes if the gas situation in Europe deteriorates further", said Holsether.
Second quarter EBITDA excl. special items was USD 1,475 million, compared with USD 775 million a year earlier. Net income attributable to shareholders of the parent was USD 664 million (USD 2.61 per share) compared with USD 539 million (USD 2.10 per share) a year earlier.
Yara’s market environment is supportive, with continuity in food production and related value chains remaining a top priority globally.
However, seasonally lower Northern hemisphere demand combined with the recent European gas price surge is leading to significant curtailments in Europe, including Yara.
Yara has currently curtailed several of its production plants, currently amounting to an annual capacity of 1.3 million tonnes of ammonia and 1.7 million tonnes of finished fertilizer.
Yara also publishes its first Green Financing Framework, underlining its commitment to sustainability as an integral part of its strategy.
Eligible green projects are expected to create substantial environmental benefits by decarbonizing the food chain, including fertilizer production and application, and by limiting the need to expand farmland. CICERO has provided a second-party opinion and rated the framework medium green.
Yara’s resilient business model continues to generate robust returns, leading to strong dividend capacity going forward in line with Yara’s capital allocation policy. The company paid dividends of USD 796 million in 2Q, and the Board will consider further cash returns in connection with 3Q results. ■