Norway | Profitability

Yara well positioned for profitable growth

Yara International ASA today meets with investors and analysts for Yara's Capital Markets Day to present market prospects.

11/26/2013

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Yara International ASA today meets with investors and analysts for Yara's Capital Markets Day to present market prospects, Yara's differentiated position and growth opportunities, and financial scenarios.

"Yara continues to deliver a strong return on investment. Commodity fertilizer prices have fallen during the last year, but our differentiated and geographically diverse business reduces exposure to commodity margin swings. Improving knowledge of Yara's differentiated and flexible business is a key focus area for today's presentation", says President and CEO Jørgen Ole Haslestad.

Yara presents new scenarios for future earnings at the Capital Markets Day. The scenarios are not a prediction of future results, but are "what if" examples based on selected fertilizer and energy price scenarios and Yara's current business.

A supply-driven market with a low Chinese urea export tax translates into an estimated Earnings Per Share (EPS) of NOK 19 based on current estimated domestic costs and zero margins, with an EPS of NOK 29 during the high export tax period. A demand-driven scenario with USD 150 per ton urea margins yields an estimated EPS of NOK 54.

"Yara's balance sheet is strong, reflecting the strength of our business and a deliberate effort to build financial flexibility for growth execution. Yara will continue to use its financial flexibility both to realize well-timed profitable growth, and to return cash to shareholders in line with its policy", says President and CEO Jørgen Ole Haslestad.