Yara reports its 1Q results were impacted by falling prices, but they expect a thighter nitrogen market into 2Q. The company's first-quarter EBITDA, excl. special items, was USD 487 million, compared with USD 1,346 million a year earlier. Their net income attributable to shareholders of the parent was USD 104 million (USD 0.41 per share) compared with USD 944 million (USD 3.71 per share) in the first quarter of 2022.
The main elements of the first-quarter results are:
- Weaker results compared with strong 1Q22, with steep market price declines impacting both sales volumes and margins
- Production curtailments of around 0.6 mt ammonia and 1.3 mt finished fertilizers for the quarter
- Earnings impacted by ~370 MUSD negative volume effect and 190 MUSD inventory write-downs, more than offsetting the lower natural gas cost
- Improved operating cash flow, including operating capital release
- Tighter nitrogen market into the second quarter, with strong European demand at new season nitrate prices
"Declining market prices led to lower deliveries and margins in the first quarter, impacting results compared to a strong first quarter last year. However, we see a tighter nitrogen market into the second quarter, with strong European demand at new season nitrate prices and strong farmer affordability metrics indicating higher nitrogen application rates," said Svein Tore Holsether, President and Chief Executive Officer of Yara.
"I am also pleased with our strategic progress to decarbonize agriculture and serve new clean ammonia segments, announcing our cooperation with Enbridge to construct a world-scale low-carbon blue ammonia production facility near Corpus Christi, Texas," said Holsether.