Yara reports fourth quarter EBITDA excluding special items1 of USD 519 million compared with USD 576 million in fourth quarter 2023. Fourth quarter 2024 results were impacted by several non-cash effects, including negative special items of USD 170 million in operating income and a currency loss of USD 260 million. This resulted in a negative net income in fourth quarter of USD 290 million, compared with positive USD 246 million a year earlier.
Fourth quarter 2024 highlights:
• Record production2 and safety performance, and delivering on cost improvements
• EBITDA1 of 519 MUSD with lower prices, but improving markets into 2025
• NOK 5 per share annual dividend proposed
• Top priority is increasing free cash flow3 and shareholder returns
"Yara's operational performance this quarter is strong, with record-high production and safety performance. This marks a significant milestone in our continuous work to improve safety and resilience in Yara. We're also progressing well on our cost and capex reduction program, with a USD 90 million reduction achieved in 2024,” said Svein Tore Holsether, President and Chief Executive Officer.
Net income for fourth quarter 2024 is impacted by several non-cash effects, including currency translation loss, impairments and pension buy-out, totaling to USD 430 million before tax. While a strengthening of the US dollar triggers a currency translation loss on US debt positions, a stronger US dollar is fundamentally positive for Yara's business, as nitrogen margins are largely USD-driven. Going forward, the combination of strict capital discipline and a tightening nitrogen market, is set to strengthen Yara's financial position, driving increased free cash flow and sustainable profitability. This in turn will enable funding of value-accretive growth and increased shareholder returns.
"Yara's key priority is to create value for its shareholders, and our capital allocation strategy is driven solely by the goal of maximizing long-term value. By prioritizing our core business and focusing on higher-return operations, we will ensure a fit-for-future Yara,” said Holsether.
Link to report, presentation, and webcast on 7th February 2025, at 12:00 CET: https://www.yara.com/investor-relations/latest-quarterly-report/
1) EBITDA excluding special items. For definition and reconciliation see APM section in the 4Q report, pages 26-34)
2) YIP production performance excluding Montoir
3) Net cash provided by operating activities minus net cash used in investment activities (see cash flow statement in the 4Q report, page 13)
Contact
Maria Gabrielsen
Head of Investor Relations
M: +47 920 900 93
Tonje Næss
Head of External Communications
M: +47 408 446 47
This information is considered to be inside information pursuant to the EU Market Abuse Regulation and is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act. This stock exchange announcement was published by Maria Gabrielsen, Head of Investor Relations, at Yara International ASA, on 7th February 2025 at 08:00 CET.
About Yara
Yara's mission is to responsibly feed the world and protect the planet. We pursue a strategy of sustainable value growth through reducing emissions from crop nutrition production and developing low-emission energy solutions. Yara's ambition is focused on growing a nature-positive food future that creates value for our customers, shareholders and society at large and delivers a more sustainable food value chain.
To drive the green shift in fertilizer production, shipping, and other energy intensive industries, Yara will produce ammonia with significantly lower emissions. We provide digital tools for precision farming and work closely with partners at all levels of the food value chain to share knowledge and promote more efficient and sustainable solutions.
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 18,000 employees and operations in more than 60 countries, sustainability is an integral part of our business model. In 2024, Yara reported revenues of USD 13.9 billion.
This information is subject to the disclosure requirements pursuant to Section 5-12 the Norwegian Securities Trading Act
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