Edition:
United Kingdom

Yara International Q2 EBITDA Ex. Items Above Estimates At $546 Mln


Tuesday, 16 Jul 2019 

July 16 (Reuters) - Yara International ASA ::REG-YARA REPORTS IMPROVED RESULTS REFLECTING HIGHER PRODUCTION AND LOWER ENERGY COST.REG-YARA REPORTS IMPROVED RESULTS REFLECTING HIGHER PRODUCTION AND LOWER ENERGY COST.Q2 EBITDA EXCLUDING. SPECIAL ITEMS $ 546 MILLION (REFINITIV POLL $505 MILLION).SAYS YARA DELIVERS SIGNIFICANTLY IMPROVED RESULTS IN Q2, WITH EBITDA EXCLUDING SPECIAL ITEMS AND IFRS 16 UP BY 62%.IMPROVEMENT IS MAINLY DRIVEN BY HIGHER PRODUCTION AND LOWER ENERGY COST.Q2 REVENUES $3.40 BILLION VERSUS $3.19 BILLION YEAR AGO.YARA’S MARKET ENVIRONMENT IS SHOWING AN IMPROVING TREND, DUE TO A COMBINATION OF A TIGHTENING GLOBAL GRAIN BALANCE AND RECEDING UREA SUPPLY PRESSURE..NATURAL GAS INPUT PRICES HAVE ALSO REDUCED SIGNIFICANTLY IN SEVERAL REGIONS, ESPECIALLY IN EUROPE.YARA’S SPOT-PRICED GAS COSTS FOR THIRD AND FOURTH QUARTER 2019 ARE EXPECTED TO BE USD 160 MILLION LOWER THAN A YEAR EARLIER IN BOTH QUARTERS..GLOBAL NITROGEN PRICES ARE CURRENTLY VOLATILE, AS HIGH-COST CHINESE EXPORTS ARE IN DEMAND ONLY IN PARTS OF THE YEAR.THE CONCLUSION OF A FINAL IPO SCOPE IS EXPECTED BY EARLY 2020..FERTILIZER DEMAND GROWTH IS LIKELY TO PICK UP AS INCREASED GRAIN PRODUCTION IS NEEDED TO KEEP PACE WITH CONSUMPTION, AND GLOBAL GRAIN STOCKS ARE RELATIVELY LOW, PARTICULARLY EXCLUDING CHINA..YARA’S ORDINARY DIVIDEND SHALL BE 50% OF NET INCOME..YARA’S TARGETED CAPITAL STRUCTURE IS A MID- TO LONG-TERM NET DEBT/EBITDA RANGE OF 1.5-2.0 AND A NET DEBT/EQUITY RATIO BELOW 0.60.