By Kjetil Malkenes Hovland
Norwegian fertilizer producer Yara International ASA (YAR.OS)
said Tuesday its second-quarter net profit grew 28% on the year,
boosted by cheap natural gas and a stronger U.S. dollar.
Net profit was 2.92 billion Norwegian kroner ($362 million),
higher than a net profit of NOK2.29 billion for the same period
last year and expectations of NOK2.79 billion. Revenue totaled
NOK27.72 billion, up from NOK23.26 billion a year earlier.
Yara said fertilizer prices were lower than a year earlier, but
that was countered by increased deliveries, a 17% on-year drop in
average gas costs, and a stronger U.S. dollar.
A weak euro and low gas prices are improving the relative
competitiveness of European fertilizer production, Yara said. It
said it expects its third-quarter European energy costs to drop by
NOK50 million on the year, and fourth-quarter European energy costs
to be NOK350 million lower than a year earlier.
Write to Kjetil Malkenes Hovland at
kjetilmalkenes.hovland@wsj.com
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