Norwegian fertilizer company Yara International ASA (YAR.OS)
said Friday its third-quarter net profit fell 40.1% on the year,
missing expectations amid lower prices.
The company also said it is in talks with German chemical
company BASF SE (BAS.XE) about investing in an ammonia plant at the
U.S. Gulf Coast.
MAIN FACTS:
-The company made a net profit of 1.57 billion Norwegian kroner
($264.7 million) in the third quarter, compared with a net profit
of NOK2.62 billion in the same period a year earlier.
-The average forecast in a FactSet poll of 18 analysts was for a
net profit of NOK1.69 billion.
-The company said it was in talks with BASF, "evaluating a
possible joint investment into a world scale ammonia plant at the
U.S. Gulf Coast."
-BASF has a strong presence in the U.S. and is a major user of
ammonia for its U.S. downstream manufacturing activities. The
location and capacity of the plant is currently being discussed by
the companies, Yara said.
-Yara's fertilizer deliveries were up 17% on the year mainly due
to higher sales in Brazil. Urea sales increased 13% on the
year.
-Fertilizer prices are lower overall, Yara said.
-Yara received on average 24% less on the year for its urea.
-Chinese urea production rose due to higher capacity, lower coal
prices, higher availability of coal and gas, and a lower export
tax, Yara said.
-Third-quarter revenue totaled NOK20.47 billion, down from
NOK20.79 billion a year earlier and slightly higher than the
expected NOK20.45 billion.
-Earnings before interest and taxes totaled NOK2.01 billion,
compared with NOK3.27 billion a year earlier and the NOK2.09
billion analysts expected.
-"Yara reports a strong third quarter despite weaker commodity
fertilizer markets," said Yara Chief Executive Officer Jorgen Ole
Haslestad.
-The Lifeco plant in Libya is expected to run at about 50%
capacity because power supply and utilities remain unstable.
-The company said its fourth-quarter energy costs are expected
to be in line with the year-earlier period, while first-quarter
2014 energy costs are expected to be NOK100 million higher on the
year.
-Shares Thursday closed at NOK236.90, valuing the company at
NOK65.98 billion.
Write to Kjetil Malkenes Hovland at
kjetilmalkenes.hovland@wsj.com
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