DOW JONES NEWSWIRES
Yara International ASA Friday said it expects an Ebitda of
approximately NOK3.0 billion for 4Q '10, up from NOK1.39 billion
the same quarter '09, as fertilizer prices have increased
substantially during '10.
MAIN FACTS:
-"The result will be the best 4Q so far for Yara," the company
said.
-Yara added that despite the strong earnings improvement, the 4Q
results are below financial market expectations due to Burrup
write-downs, delays in deliveries, phasing of sales within the
quarter and somewhat higher fixed costs than in 3Q.
-"In light of the positive market development globally and in
Europe, Yara has deferred some sales into '11 to benefit from the
positive price trend. Sales volumes towards the end of the quarter
were lower than in the beginning of the quarter, and realized price
increases in Europe were thus lower than the average list price
increase from third to fourth quarter," the company said.
-The effect from this is estimated to be NOK200 million,
compared with a situation with stable volumes through the
quarter.
-Yara also said that its own produced nitrate sales were 240,000
tons below 3Q in 4Q, due to higher sales from inventory in 3Q and
the previously communicated maintenance stop in Yara's Ambes
plant.
-The Ebitda effect is estimated at NOK250 million compared to
3Q, and Yara has during Jan. increased nitrate fertilizer prices
substantially, with deliveries running well.
-Yara said that the 4Q results will be also be charged with an
estimated NOK165 million in write-downs related to balance sheet
items in Burrup Fertilisers Pty Ltd (BFL) following findings in the
ongoing Yara-initiated investigations of financial irregularities
in the JV.
-The remaining asset value for Yara's stake in BFL is
approximately NOK1.7 billion.
-4Q fixed costs excluding performance-related pay is seen at
same level as 4Q '09.
-Costs related to environmental accruals, higher maintenance
activity, restructuring and other non-recurring items are
approximately NOK150 million higher than in 3Q '10.
-"The global fertilizer market is tight as global agricultural
prices are at all-time high levels and all fertilizer capacity
outside China, which has implemented high export taxes, aim to run
at full capacity," Yara said.
-No further details of Yara's fourth-quarter financial results
will be released before the scheduled publication on 15 Feb.
-By Stockholm Bureau, Dow Jones Newswires; +46-8-5451-3090;
djnews.stockholm@dowjones.com