By Kjetil Malkenes Hovland
OSLO--Norwegian fertilizer producer Yara International ASA
(YAR.OS) said Tuesday its fourth-quarter net profit fell 36% on the
year, due to lower prices across the board, although fertilizer
sales rose on the year.
MAIN FACTS:
-The company made a net profit of 2.17 billion Norwegian kroner
($394 million) for the fourth quarter of 2012, compared with a net
profit of NOK3.39 billion for the same period a year earlier.
-The average forecast in a FactSet poll of 16 analysts was for a
net profit of NOK2.13 billion.
-Revenues were NOK20.97 billion, up from NOK20.73 billion a year
ago and higher than the expectations for NOK19.99 billion.
-Earnings before interest and taxes totaled NOK2.73 billion,
compared with NOK4.18 billion a year ago and the NOK2.6 billion
analysts expected.
-The company proposed a dividend of NOK13 a share, compared with
NOK7 a year ago, due to a strong quarterly and full-year
earnings.
-"Strong grain prices continue to support global nitrogen
demand, even absorbing a large increase in supply from China. This
demand increase is both welcome and necessary to avoid a further
decline in global grain stocks," said Yara Chief Executive Officer
Jorgen Ole Haslestad.
-The Lifeco plant in Libya is running close to full capacity at
about 900,000 metric tons a year, but the power supply isn't
stable, Yara said.
-The global farm margin outlook is strong, providing strong
incentives to use fertilizers.
-Strong crop prices continue to support fertilizer demand and
grain production is expected to drop due to the weather in key
producing regions. Since stocks are low, higher prices are needed
to balance the market, Yara said.
-Yara-produced fertilizer deliveries rose 16% on the year in the
fourth quarter. Urea sales increased 52%, mainly due to higher
sales of Qafco urea in North America and Brazil. NPK sales rose 12%
and nitrate sales by 25%. Industrial volumes decreased by 2%.
-Measured in dollars, realized urea prices fell 11%, nitrate
prices fell 6% and NPK prices fell 3%, Yara said.
-The company posted a foreign exchange gain of NOK118 million in
the quarter, due to a weaker dollar against the euro and krone,
compared with a foreign exchange loss of NOK175 million a year
earlier.
-Shares Monday closed at NOK297.00, valuing the company at
NOK84.4 billion.
Write to Kjetil Malkenes Hovland at
kjetilmalkenes.hovland@dowjones.com
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