Yara reports strong operational performance and cost improvements

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.

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)