Yara delivers improved returns, proposes additional dividend
Oslo, 20 October 2020: Yara delivers improved third-quarter results, with record NPK deliveries, improved capital returns and increased cash flow. Net income was USD 340 million (USD 1.27 per share) compared with USD 74 million (USD 0.27 per share) a year earlier.
The main elements of the third-quarter results are:
- NOK 18 per share additional dividend proposed; total NOK 53 per share cash returns1 paid or committed to shareholders in 2020
- 7.9% ROIC2, up from 6.1% a year earlier
- EBITDA3 down 11%, mainly reflecting lower nitrogen prices
- Record NPK deliveries
- USD 2.5 billion free cashflow4 rolling 4 quarters
“Yara delivers its ninth consecutive quarter with improved capital returns, despite our results being impacted by lower nitrogen prices. Our crop nutrition focused business model continues to perform strongly, delivering record NPK volumes in the quarter. I would like to give credit to the entire Yara organisation for another solid effort in a demanding environment,” said Svein Tore Holsether, President and Chief Executive Officer of Yara.
“Our cash flow also continued to improve, with 2.5 billion US dollars of free cash flow generated over the last four quarters. We will propose a NOK 18 per share additional dividend for payment in the fourth quarter, bringing our total cash paid or committed to shareholders in 2020 to NOK 53 per share,” said Holsether.
Third-quarter operating income was USD 384 million, up from USD 314 million a year earlier. Net income excluding currency effects and special items was USD 0.88 per share, compared with USD 0.94 per share in third quarter 2019. EBITDA excluding special items was USD 558 million, down from USD 630 million a year earlier.
Yara’s market environment is in a positive trend overall, with a broadly stable global grain balance and limited urea supply pressure. Fertiliser and food demand is resilient also in times of crisis, and ensuring continuity in food production and related value chains remains a top priority for all countries. Yara’s financial situation is robust, with strong cash flow from operations and declining capital expenditure due to strong capital discipline.
Link to report, presentation and webcast 20 October at 12:00 CEST:
1) Including share buy-backs in 1Q20 plus ongoing buy-backs to be completed in 1Q21 (assuming an average share price of 350 NOK) and the proportional redemption of shares owned by the Norwegian state relating to these buy-backs
2) L12M ROIC
3) EBITDA excluding special items
4) Net cash provided by operating activities minus net cash used in investing activities (see cash flow statement page 20 in Yara’s third-quarter report 2020)
Note on Alternative performance measures: Alternative performance measures are defined, explained and reconciled to the Financial statements in the APM section of the Quarterly report on pages 35-40.
Thor Giæver, SVP Investor Relations
Mobile: (+47) 480 75 356
Josiane Kremer, Director External Communications
Mobile: (+47) 481 80 451
Yara grows knowledge to responsibly feed the world and protect the planet. Supporting our vision of a world without hunger, we pursue a strategy of sustainable value growth, promoting climate-friendly and high-yielding crop nutrition solutions for the world’s farming community and food industry.
Yara’s ambition is to be the Crop Nutrition Company for the Future. We are committed to creating value for our customers, shareholders and society at large, as we work to develop a more sustainable food value chain. To achieve our ambition, we have taken the lead in developing digital farming tools for precision farming, and work closely with partners throughout the food value chain to improve the efficiency and sustainability of agriculture and food production.
Founded in 1905 to solve the emerging famine in Europe, Yara has established a unique position as the industry’s only global crop nutrition company. With our integrated business model and a worldwide presence of around 16,000 employees and operations in over 60 countries, we offer a proven track record of responsible and reliable returns. In 2019, Yara reported revenues of USD 12.9 billion.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
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