Yara International ASA reported strong third quarter results for 2014, with record deliveries. Margins continued to benefit from lower European natural gas prices. Fertilizer production was robust, though ammonia production decreased at some sites. Overall demand and prices for fertilizers remained healthy. Yara expects further reductions in European gas costs in the coming quarters and recently completed an acquisition that will improve its raw material integration in Brazil.
Strong result driven by higher margins
• Margins benefit from lower European gas prices and stronger US dollar
• Continued volume and margin growth in Brazil
• Further growth in Latin America with OFD and Galvani acquisitions
• Proposed dividend NOK 13 per share, 47% of net income
Yara’s fourth-quarter net income after non-controlling interests was
NOK 1,860 million, compared with NOK 63 million a year earlier.
Excluding net foreign exchange gain/loss and special items, the result
was NOK 2,253 million, compared with NOK 776 million in fourth
quarter 2013. The corresponding earnings per share were NOK 8.17
compared with NOK 2.80 a year earlier.
“Yara reports strong fourth-quarter results with improved margins,
lower natural gas cost in Europe and a stronger US dollar,” said Torgeir
Kvidal, acting Chief Executive Officer of Yara.
“Our Brazilian activities continue to perform well, with both higher volumes
and margins. We are also ahead of plan with synergy capture from the Bunge
acquisition, with USD 55 million realized in 2014 ,” said Torgeir Kvidal.
2015 07-29 - Yara International ASA Q2 2015 PresentationYara International
Yara’s second-quarter net income after non-controlling interests was NOK
2,916 million, compared with NOK 2,285 million a year earlier. Excluding
net foreign exchange gain/(loss) and special items, the result was
NOK 2,637 million, compared with NOK 2,142 million in second quarter
2014. The corresponding earnings per share were NOK 9.58 compared
with NOK 7.74 a year earlier.
“Yara reports strong second-quarter results with higher deliveries and
improved margins, reflecting continued lower natural gas cost in Europe
and a stronger US dollar,” said Torgeir Kvidal, acting Chief Executive
Officer of Yara.
“Sales of our premium products continue to grow in Latin America
and Asia, reflecting both the acquisition of OFD and continued organic
growth“ said Torgeir Kvidal.
2015-10-21 - Yara International ASA Q3 2015 PresentationYara International
Strong result with increased deliveries
Pick-up in Brazil sales
European deliveries down 5%, but increase for nitrates
Lower production mainly due to planned maintenance
NOK 3.2 billion gain on divestment of GrowHow UK
Summary third quarter
3
IR – 21 October 2015
10.54
9.82 9.25
7.67
8.04 6.69
5.66
0.23
6.40
8.26
6.18 6.74
2.65
10.59
14.56
8.32
10.80
9.00
7.21
8.52 7.97
5.62
2.65
7.03 7.74 7.62 8.17
10.51
9.58
7.41
Earnings per share*
*Average number of shares for 3Q 2015: 275.1 million (3Q 2014: 276.2 million).
NOK 37.31 20.67 27.59 27.79
Annual
2012 2013 2014
EPS excluding currency and
special items
2015
4
IR – 21 October 2015
Lower urea prices due to lower supply costs from China, and increased production
capacity globally
Western Europe nitrogen fertilizer industry deliveries down 5% on third quarter last
year
Brazil fertilizer industry deliveries in line with third quarter 2014; 6% lower year to date
Strong demand for value-added fertilizer products
Market development
5
IR – 21 October 2015
69.8
10.8
59.0 58.2
15.6
73.8
0
10
20
30
40
50
60
70
80
Production
Export
Domestic
Domestic
Export
Production
Million tons
Source: BOABC, CFMW
Increased production and exp
Yara’s second-quarter net income after non-controlling interests was NOK
2,916 million, compared with NOK 2,285 million a year earlier. Excluding
net foreign exchange gain/(loss) and special items, the result was
NOK 2,637 million, compared with NOK 2,142 million in second quarter
2014. The corresponding earnings per share were NOK 9.58 compared
with NOK 7.74 a year earlier.
“Yara reports strong second-quarter results with higher deliveries and
improved margins, reflecting continued lower natural gas cost in Europe
and a stronger US dollar,” said Torgeir Kvidal, acting Chief Executive
Officer of Yara.
“Sales of our premium products continue to grow in Latin America
and Asia, reflecting both the acquisition of OFD and continued organic
growth“ said Torgeir Kvidal.
Yara’s first-quarter net income after non-controlling interests was NOK 729
million, compared with NOK 1,773 million a year earlier. Net income was
negatively affected by a NOK 1,831 million foreign exchange loss and a
NOK 929 million write-down related to the Lifeco investment. Excluding
net foreign exchange gain/loss and special items, the result was NOK
2,896 million, compared with NOK 1,946 million in first quarter 2014.
The corresponding earnings per share were NOK 10.51 compared with
NOK 7.03 a year earlier.
“Yara reports strong first-quarter results with higher deliveries and improved
margins, reflecting continued lower natural gas cost and a stronger
US dollar,” said Torgeir Kvidal, acting Chief Executive Officer of Yara.
“Ammonia and finished fertilizer production increased significantly in the
quarter, benefitting from improved reliability and debottlenecking,” said
Torgeir Kvidal.
2015 04-27 - Yara International ASA Q1 2015 PresentationYara International
Yara’s first-quarter net income after non-controlling interests was NOK 729
million, compared with NOK 1,773 million a year earlier. Net income was
negatively affected by a NOK 1,831 million foreign exchange loss and a
NOK 929 million write-down related to the Lifeco investment. Excluding
net foreign exchange gain/loss and special items, the result was NOK
2,896 million, compared with NOK 1,946 million in first quarter 2014.
The corresponding earnings per share were NOK 10.51 compared with
NOK 7.03 a year earlier.
“Yara reports strong first-quarter results with higher deliveries and improved
margins, reflecting continued lower natural gas cost and a stronger
US dollar,” said Torgeir Kvidal, acting Chief Executive Officer of Yara.
“Ammonia and finished fertilizer production increased significantly in the
quarter, benefitting from improved reliability and debottlenecking,” said
Torgeir Kvidal.
Strong result driven by higher margins
• Margins benefit from lower European gas prices and stronger US dollar
• Continued volume and margin growth in Brazil
• Further growth in Latin America with OFD and Galvani acquisitions
• Proposed dividend NOK 13 per share, 47% of net income
Yara’s fourth-quarter net income after non-controlling interests was
NOK 1,860 million, compared with NOK 63 million a year earlier.
Excluding net foreign exchange gain/loss and special items, the result
was NOK 2,253 million, compared with NOK 776 million in fourth
quarter 2013. The corresponding earnings per share were NOK 8.17
compared with NOK 2.80 a year earlier.
“Yara reports strong fourth-quarter results with improved margins,
lower natural gas cost in Europe and a stronger US dollar,” said Torgeir
Kvidal, acting Chief Executive Officer of Yara.
“Our Brazilian activities continue to perform well, with both higher volumes
and margins. We are also ahead of plan with synergy capture from the Bunge
acquisition, with USD 55 million realized in 2014 ,” said Torgeir Kvidal.
2015 07-29 - Yara International ASA Q2 2015 PresentationYara International
Yara’s second-quarter net income after non-controlling interests was NOK
2,916 million, compared with NOK 2,285 million a year earlier. Excluding
net foreign exchange gain/(loss) and special items, the result was
NOK 2,637 million, compared with NOK 2,142 million in second quarter
2014. The corresponding earnings per share were NOK 9.58 compared
with NOK 7.74 a year earlier.
“Yara reports strong second-quarter results with higher deliveries and
improved margins, reflecting continued lower natural gas cost in Europe
and a stronger US dollar,” said Torgeir Kvidal, acting Chief Executive
Officer of Yara.
“Sales of our premium products continue to grow in Latin America
and Asia, reflecting both the acquisition of OFD and continued organic
growth“ said Torgeir Kvidal.
2015-10-21 - Yara International ASA Q3 2015 PresentationYara International
Strong result with increased deliveries
Pick-up in Brazil sales
European deliveries down 5%, but increase for nitrates
Lower production mainly due to planned maintenance
NOK 3.2 billion gain on divestment of GrowHow UK
Summary third quarter
3
IR – 21 October 2015
10.54
9.82 9.25
7.67
8.04 6.69
5.66
0.23
6.40
8.26
6.18 6.74
2.65
10.59
14.56
8.32
10.80
9.00
7.21
8.52 7.97
5.62
2.65
7.03 7.74 7.62 8.17
10.51
9.58
7.41
Earnings per share*
*Average number of shares for 3Q 2015: 275.1 million (3Q 2014: 276.2 million).
NOK 37.31 20.67 27.59 27.79
Annual
2012 2013 2014
EPS excluding currency and
special items
2015
4
IR – 21 October 2015
Lower urea prices due to lower supply costs from China, and increased production
capacity globally
Western Europe nitrogen fertilizer industry deliveries down 5% on third quarter last
year
Brazil fertilizer industry deliveries in line with third quarter 2014; 6% lower year to date
Strong demand for value-added fertilizer products
Market development
5
IR – 21 October 2015
69.8
10.8
59.0 58.2
15.6
73.8
0
10
20
30
40
50
60
70
80
Production
Export
Domestic
Domestic
Export
Production
Million tons
Source: BOABC, CFMW
Increased production and exp
Yara’s second-quarter net income after non-controlling interests was NOK
2,916 million, compared with NOK 2,285 million a year earlier. Excluding
net foreign exchange gain/(loss) and special items, the result was
NOK 2,637 million, compared with NOK 2,142 million in second quarter
2014. The corresponding earnings per share were NOK 9.58 compared
with NOK 7.74 a year earlier.
“Yara reports strong second-quarter results with higher deliveries and
improved margins, reflecting continued lower natural gas cost in Europe
and a stronger US dollar,” said Torgeir Kvidal, acting Chief Executive
Officer of Yara.
“Sales of our premium products continue to grow in Latin America
and Asia, reflecting both the acquisition of OFD and continued organic
growth“ said Torgeir Kvidal.
Yara’s first-quarter net income after non-controlling interests was NOK 729
million, compared with NOK 1,773 million a year earlier. Net income was
negatively affected by a NOK 1,831 million foreign exchange loss and a
NOK 929 million write-down related to the Lifeco investment. Excluding
net foreign exchange gain/loss and special items, the result was NOK
2,896 million, compared with NOK 1,946 million in first quarter 2014.
The corresponding earnings per share were NOK 10.51 compared with
NOK 7.03 a year earlier.
“Yara reports strong first-quarter results with higher deliveries and improved
margins, reflecting continued lower natural gas cost and a stronger
US dollar,” said Torgeir Kvidal, acting Chief Executive Officer of Yara.
“Ammonia and finished fertilizer production increased significantly in the
quarter, benefitting from improved reliability and debottlenecking,” said
Torgeir Kvidal.
2015 04-27 - Yara International ASA Q1 2015 PresentationYara International
Yara’s first-quarter net income after non-controlling interests was NOK 729
million, compared with NOK 1,773 million a year earlier. Net income was
negatively affected by a NOK 1,831 million foreign exchange loss and a
NOK 929 million write-down related to the Lifeco investment. Excluding
net foreign exchange gain/loss and special items, the result was NOK
2,896 million, compared with NOK 1,946 million in first quarter 2014.
The corresponding earnings per share were NOK 10.51 compared with
NOK 7.03 a year earlier.
“Yara reports strong first-quarter results with higher deliveries and improved
margins, reflecting continued lower natural gas cost and a stronger
US dollar,” said Torgeir Kvidal, acting Chief Executive Officer of Yara.
“Ammonia and finished fertilizer production increased significantly in the
quarter, benefitting from improved reliability and debottlenecking,” said
Torgeir Kvidal.
Detailed look at Europe's petrochemical markets.
Page 3 - Benzene - Rise like a phoenix -- will benzene climb out of crude wreckage?
Page 11 – Polyethylene - Rise in EU tariffs to constrain -- but not quash -- PE imports from Gulf
Page 15 – Paraxylene - European paraxylene to look for US demand in 2015 as Asia cuts imports
Page 20 – PVC - Consolidation, acquisition look set to bring changes to European PVC pricing
Page 23 – Naphtha - Naphtha prices a double-edged sword for European industry
Page 29 – Butadiene - New capacity to squeeze European butadiene prices further
Page 32 – SBR - Struggling currency, crude oil collapse to weigh on Europe's SBR market
Page 40 – MTBE - US MTBE turnarounds set to keep European market tight in Q1
Page 44 – Methanol - European methanol outlook to remain volatile
Platts Senior Editor, Nandita Lal, recently presented this slide deck at Platts Vienna Forum during the EPCA conference last month.
Key takeaways include:
- Cracking light feedstocks changes C2, C3 trade flows
– means EU C3 could stay at premium
- Higher EU propylene prices could suck in imports
- US, Asia eye PDH expansions to fill propylene
shortage
- Europe on high end of propylene investment curve
- Like with ethylene, CTO/MTO are big question mark
Detailed look at Europe's petrochemical markets.
Page 3 - Benzene - Rise like a phoenix -- will benzene climb out of crude wreckage?
Page 11 – Polyethylene - Rise in EU tariffs to constrain -- but not quash -- PE imports from Gulf
Page 15 – Paraxylene - European paraxylene to look for US demand in 2015 as Asia cuts imports
Page 20 – PVC - Consolidation, acquisition look set to bring changes to European PVC pricing
Page 23 – Naphtha - Naphtha prices a double-edged sword for European industry
Page 29 – Butadiene - New capacity to squeeze European butadiene prices further
Page 32 – SBR - Struggling currency, crude oil collapse to weigh on Europe's SBR market
Page 40 – MTBE - US MTBE turnarounds set to keep European market tight in Q1
Page 44 – Methanol - European methanol outlook to remain volatile
Platts Senior Editor, Nandita Lal, recently presented this slide deck at Platts Vienna Forum during the EPCA conference last month.
Key takeaways include:
- Cracking light feedstocks changes C2, C3 trade flows
– means EU C3 could stay at premium
- Higher EU propylene prices could suck in imports
- US, Asia eye PDH expansions to fill propylene
shortage
- Europe on high end of propylene investment curve
- Like with ethylene, CTO/MTO are big question mark
The revival and transformation of Europe’s largest onshore oilfield; the Pato...Albania Energy Association
Presentation: The revival and transformation of Europe’s largest onshore oilfield; the Patos-Marinza field
Leonidha Çobo, General Manager, Bankers Petroleum Albania Ltd
Yara’s fourth-quarter net income after non-controlling interests was
NOK 1,860 million, compared with NOK 63 million a year earlier.
Excluding net foreign exchange gain/loss and special items, the result
was NOK 2,253 million, compared with NOK 776 million in fourth
quarter 2013. The corresponding earnings per share were NOK 8.17
compared with NOK 2.80 a year earlier.
“Yara reports strong fourth-quarter results with improved margins,
lower natural gas cost in Europe and a stronger US dollar,” said Torgeir
Kvidal, acting Chief Executive Officer of Yara.
“Our Brazilian activities continue to perform well, with both higher volumes
and margins. We are also ahead of plan with synergy capture from the Bunge
acquisition, with USD 55 million realized in 2014 ,” said Torgeir Kvidal.
The global farm margin outlook and incentives for fertilizer application
remain supportive overall. With attention turning to the need for another
record crop in 2015, the cereal price index increased during the fourth
quarter ending 3% higher than a quarter ago. Furthermore, the recent
strengthening of the US dollar has improved the competiveness of farmers
in key producing regions like Europe and Brazil.
Global nitrogen demand remained strong during the fourth quarter and
season to date deliveries are higher than the previous season both in
Europe and the US. However, following a late 2014 application, a larger
than usual share of third quarter US deliveries has already been consumed
and market coverage in Europe is considered normal.
Demand for value-added fertilizers like nitrates and compound NPKs
remains strong, particularly in cash crop sectors where prices have
developed more positively than grains.
A substantial proportion of nitrogen capacity in Ukraine and other key
export locations remains curtailed, increasing the need for Chinese
urea exports, which reached a record 14 million tons in 2014. Planned
capacity additions outside China over the next years are unlikely to fully
displace Chinese urea exports, indicating that the latter will be key to
global nitrogen pricing also going forward. Given the significant Chinese
curtailments in place today, current export prices for prilled urea fob
China (USD 285-290 per ton) are believed to be close to break-even
for swing producers. Going forward, global commodity nitrogen prices
are therefore likely to be set by the cost of high-quality anthracite coal
in China, export tariffs and the RMB-USD exchange rate. The anthracite
coal price has so far not been negatively affected by the drop in global oil
and gas prices, and the Chinese currency has strengthened in parallel with
the US dollar.
A weaker euro and lower gas prices have improved the relative
competitiveness of European fertilizer capacity, and Yara enters the first
quarter with a strong European order book.
Growth in Latin America remains a key on-going focus area for Yara.
The acquisitions of OFD and Galvani were
Andrew Bonnington, Platts Editorial Director, Strategic Oil Markets Development, discusses how European jet fuel market can remain competitive in the new import environment at IATA Aviation Fuel Forum in Prague, 17-19 May, 2016.
Andy Bonnington, Platts Editorial Director, Strategic Oil Markets Development, discusses how European jet fuel market can remain competitive in the new import environment.
The slide presentation used at the Analyst Day presetation at the Ritz-Carlton in Dallas. The slides contain information about the Mariner East 1 & 2 pipelines and Sunoco's estimates of when those projects will be operational.
EU: Halogenated Derivatives of Hydrocarbons – Market Report. Analysis and For...IndexBox Marketing
IndexBox Marketing has just published its report: “EU: Halogenated Derivatives of Hydrocarbons - Market Report. Analysis And Forecast To 2020”. This report focuses on the EU halogenated hydrocarbon derivative market, providing a comprehensive analysis and the most recent data on its market size and volume, EU trade, price dynamics, domestic production, and turnover in the industry. The market trends section reveals the main issues and uncertainties concerning the industry, while the medium-term outlook uncovers market prospects. The attractivity index (IB Index) summarizes the source of existing opportunities as they appear in this market, as well as an interpretation of the trade figures.
Yara Fertilizer Industry Handbook
This handbook describes the fertilizer industry and in particular the nitrogen part which is
the most relevant for Yara International.
The document does not describe Yara or its strategies. For information on Yara-specific
issues please see the Capital Markets Day presentations.
Fertilizers are essential plant nutrients that are applied to a crop to achieve optimal yield
and quality. The following slides describe the value and characteristics of fertilizers in
modern food production.
An Introduction to Improved Cold Weather Concreting
How does cold weather concreting work ?
Purpose of an “antifreeze” agent are:
– Prevent temperature decrease below 5 °C within setting period
– Prevent freezing of water needed for hydration until a certain concrete strength is reached
– Prevent freezing the first day
Calcium Nitrate
– Reduces setting time, produces heat earlier and thereby provides the necessary temperatures for hydration
– does not reduce the freezing point of the mixing water
Best practice in compliance with ACI_306R-88
Antifreeze:
Keys are water control and set acceleration
The concrete hydration of surface close areas is crucial as the reinforcement is often placed here
For the concrete hydration the availability of water is essential. The two ways to prevent its freezing are
– Keep water warm (for instance by hydration heat, as a result of a set accelerator like NitCal) – dynamic solution at light frost
– Increase salt concentration of water to prevent freezing – static solution for deep frost
The way to increase salt concentration is the reduction of water, as the amount of salt added by admixtures is limited
The combined use of NitCal and a strong water reducing agent is recommended to obtain w/c ratio as low as 0,3 and thus minimize excess water.
When doing so, only minor ice formation is expected, and concrete can hydrate at even -15°C
Attention:
– In this manner produced concrete develops compressive strength very slowly
– Final compressive strength might be reduced
– Use of insulation is mandatory to support hydration
– Use of hardening accelerator like Thiocyanate/Rhodanide or Aluminum Nitrate is recommended for concreting jobs below -10°C
For more information please visit http://yara.co.uk/chemicals/speciality-chemicals/concrete-accelerator-admixture/
Introduction to calcium nitrate in concreting - Yara NitCalYara International
For more information please visit: http://yara.co.uk/chemicals/speciality-chemicals/concrete-accelerator-admixture/
Concrete and Calcium NitrateAn Introduction to Performance Concreting
Presentation Summary
What is Concrete? A fundamental material to modern life
What is Calcium Nitrate? A useful molecule
What is NitCal™? A Multifunctional Concrete Admixture
What is Concrete?
Concrete
The largest unreinforced concrete dome in the world
Reinforced concrete is at the basis of modern urban life
Reinforced concrete continues to be used to create the world’s most impressive structures
Calcium Nitrate
Calcium Nitrate was the first synthetic nitrogen fertilizer compound manufactured
Yara – the Global Leader in Nitrates
Founded in 1905, over a century of nitrogen chemistry expertise
Production Scale:
Global No.1 in Calcium Nitrate production
Global No.1 in Nitrates production (several grades)
Global No.1 in NPK fertilizers production
Research: Continuous nitrogen chemistry R&D at our centers in Norway and Germany
Headquartered in Oslo, Norway
What is NitCal™?
What is NitCal?
Yara’s NitCal provides calcium nitrate for concrete admixtures
NitCal supports concrete chemistry
calcium is beneficial for the essential reactions
nitrate is easily integrated into the cement’s crystal matrix
From Cement to Concrete
How does NitCal work?
NitCal significantly reduces setting time across a wide temperature range
NitCal increases long-term strength significantly unlike sodium nitrate by formation of additional calcium silicate hydrates
NitCal provides calcium nitrate in an easy to handle and environmentally friendly format
NitCal is chloride free according to industry standards
Cement Hydration
The Multifunctional Concrete Admixture
Indicative Applications and Dosing Rates
Where is NitCal available?
NitCal is available globally and quickly due to Yara’s unique distribution network
NitCal production is ISO certified and its principal source is the Yara plant located in Porsgrunn, Norway
Yara has a solid global presence
What NitCal is NOT?
NitCal is NOT a CE marked admixture and Yara not consumer product producer
NitCal is NOT a hardening accelerator (unwanted overheating is therefore minimized)
NitCal is NOT an activator for granulated slag
The Yara Fertilizer Industry Handbook is a tool for analysts, investors, journalists and others who would like to understand the fertilizer industry and in particular the parts most relevant for Yara. The fertilizer industry plays a key role in feeding a growing and increasingly food quality-conscious population. The nitrogen fertilizer industry is covered in detail as this is the most important sector for Yara.
This is the corporate presentation of Yara International.
Yara delivers solutions for sustainable agriculture and the environment. Our fertilizers and crop nutrition programs help produce the food required for the growing world population. Our industrial products and solutions reduce emissions, improve air quality and support safe and efficient operations. Founded in Norway in 1905, Yara has a worldwide presence with sales to 150 countries. Safety is always our top priority.
www.yara.com
Yara research has identified a new grade of potassium calcium nitrate that can reduce costs and improve performance in concentrated solar power (CSP) plants. Following positive laboratory testing, this new project is ready to change heat storage in the global solar market.
If you want more information on Yara's solar power molten salt, please visit:
www.yara.com/media/news_archive/concentrated_solar_thermal_power.aspx
www.yara.com/products_services/industrial_solutions/chemicals/specialty_chemicals/solar_energy.aspx
MUTUAL FUNDS (ICICI Prudential Mutual Fund) BY JAMES RODRIGUESWilliamRodrigues148
Mutual funds are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. They are managed by professional portfolio managers or investment companies who make investment decisions on behalf of the fund's investors.
1. IR-Date: 2014-10-22
0
22 October 2014
Yara International ASA Third quarter results 2014
2. IR-Date: 2014-10-22
1
Strong result with record deliveries
Continued margin benefit from lower European gas prices
Strong fertilizer production; lower ammonia production in Pilbara and Lifeco
Record Industrial result
Summary third quarter
3. IR-Date: 2014-10-22
2
10.02
7.73
12.42
11.84
10.54
9.82
9.25
7.67
8.04
6.69
5.66
0.23
6.40
8.26
6.18
Earnings per share*
•Average number of shares for 3Q 2014: 276.2 million (3Q 2013: 277.6 million).
NOK
41.99
37.31
20.67
20.84
Annual
2011
2012
2013
EPS excluding currency and special items
2014
4. IR-Date: 2014-10-22
3
Continued robust fertilizer demand
Higher urea prices; continued curtailments in China, Ukraine and Egypt
Western Europe nitrogen fertilizer industry deliveries 5% higher
Higher phosphate prices and upgrading margins than last year
Strong demand for value-added fertilizer products
Fertilizer market development
5. IR-Date: 2014-10-22
4
Food prices below 5-year average
Source: FAO
0
50
100
150
200
250
300
1/2004
1/2005
1/2006
1/2007
1/2008
1/2009
1/2010
1/2011
1/2012
1/2013
1/2014
Index
FAO price index
Cereals Price Index
Cereals 5 year avg.
Food Price Index
Food 5 year avg.
6. IR-Date: 2014-10-22
5
Nitrogen deliveries in Europe and USA close to normal
0.0
0.5
1.0
1.5
2.0
2.5
3Q10
3Q11
3Q12
3Q13
3Q14
Domestic
Imports
Source: Yara estimate for fertilizer deliveries to selected West European countries.
Total nitrogen deliveries based on TFI, US Trade Commission, Blue-Johnson and Yara estimates
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
3Q10
3Q11
3Q12
3Q13
3Q14
Production
Net imports
West Europe
USA
+12%
+5%
Million tons N
Million tons N
7. IR-Date: 2014-10-22
6
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
13/14
Source: BOABC, CFMW
12/13
Chinese urea: production decline despite significant capacity increase
14/15
0
50
100
150
200
250
300
350
400
450
500
550
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
2 000
2 200
2 400
Black Sea
USD/t
Chinese exports
(kilotons)
Chinese production
(kilotons)
Jul-Aug 11.7 mt
(12.1 mt Jul-Aug last year)
Year-to-date 47.5 mt
(48.2 mt year-to-date last year)
Jul-Aug 2.4 mt
(2.8 mt Jul-Aug last year)
Year-to-date 6.6 mt
(4.1 mt year-to-date last year)
9. IR-Date: 2014-10-22
8
Brazil: Yara benefiting both from Bunge acquisition and increase in industry deliveries
Brazil fertilizer industry deliveries (Jan-Sep)
0
5 000
10 000
15 000
20 000
25 000
2011
2012
2013
2014
+7%
Kilotons
Yara Brazil fertilizer deliveries1 (Jan-Sep)
Kilotons
Source: ANDA, Yara
1) Excluding trade
0
1 000
2 000
3 000
4 000
5 000
6 000
2011
2012
2013
2014
Thousands
10. IR-Date: 2014-10-22
9
Earnings before interest, tax, depreciation and amortization (EBITDA)
4 281
3 455
5 444
4 982
4 310
4 966
4 103
3 591
4 184
4 039
3 318
1 858
3 591
4 227
3 964
2011
2013
2012
2014
NOK millions
18,163
16,970
13,399
11,782
Annual
EBITDA excluding special items
NOK millions
11. IR-Date: 2014-10-22
10
EBITDA development
68 109
891
132
222
151
EBITDA
3Q14
3,964
EBITDA Other Currency
3Q13
Special
items
Volume & mix Gas & oil
costs in
Europe
Price/margin
3,318
NOK millions
13. IR-Date: 2014-10-22
12
0
100
200
300
400
500
600
700
3Q11
1Q12
3Q12
1Q13
3Q13
1Q14
3Q14
USD/t
Nitrogen upgrading margins1
(monthly publication prices)
Urea CFR
CAN (46% N)
NH3 CFR (46% N)
Value above gas
Value above ammonia
Nitrate premium above urea
Yara EU gas cost *20
Improved European nitrogen margins; nitrate premium in line
0
20
40
60
80
100
120
140
160
180
3Q11
1Q12
3Q12
1Q13
3Q13
1Q14
3Q14
European nitrate premium2
(quarterly Yara realized)
2) Yara European realized nitrate prices compared with urea publication prices with one month time lag. All numbers in USD per ton of CAN equivalents.
1) All prices in urea equivalents
14. IR-Date: 2014-10-22
13
0
100
200
300
400
500
600
700
3Q10
1Q11
3Q11
1Q12
3Q12
1Q13
3Q13
1Q14
3Q14
USD/t
Phosphate upgrading margins
DAP, fob USG
Rock, fob NA *1.4
Value above
raw material
0
100
200
300
400
500
600
700
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
USD/t
NPK premium over blend1
NH3, fob Black Sea *0.22
DAP, fob Morocco
MOP, cfr NWE
Urea, fob Black sea
Solid commodity phosphate margins and NPK premiums
Weighted average global premium above blend cost
1) Export NPK plants, average grade 19-10-13, net of transport and handling cost.
Nitrate premium
15. IR-Date: 2014-10-22
14
(51)
(36)
(660)
(891)
(650)
(500)
(1 000)
(900)
(800)
(700)
(600)
(500)
(400)
(300)
(200)
(100)
0
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
NOK millions
October 2014 estimate**
** Based on forward prices as of 14 October 2014
Lower natural gas cost in Europe
Source: Yara, World Bank, Platts
*Dotted lines denote forward prices as of 14 October 2014
Yara European gas & oil cost
Actual for quarter
Change in European energy cost
4.0
5.0
6.0
7.0
8.0
9.0
10.0
11.0
12.0
13.0
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
USD/
MMBtu
Zeebrugge (1-month lag)
Yara Europe
16. IR-Date: 2014-10-22
15
1 305
1 390
1 009
1 009
1 402
1 713
1 112
1 296
258
274
569
941
3Q13
3Q14
3Q13
3Q14
3Q13
3Q14
3Q13
3Q14
3Q13
3Q14
3Q13
3Q14
Yara-produced deliveries
Joint venture & third party sourced
Total
Fertilizer deliveries by product and source
Nitrate
NPK compounds
NPK blends
Urea
UAN
Kilotons
Other
17. IR-Date: 2014-10-22
16
Net interest-bearing debt development
308
549
248
4,963
Yara dividend Other Net debt
Sep 14*
Net operating
capital
change
Dividends
from equity-accounted
investees
447
Investments
net
1,860
Cash
earnings**
3,194
Net debt
Jun 14*
3,347
FX loss
164
Share buy
backs &
redemption
2,743
* Included in net interest-bearing debt are external bank time deposits (4-12 months), this is part of other current assets in balance sheet
** Operating income plus depreciation and amortization, minus tax paid, net gain/loss on disposals, net interest expense and bank charges
NOK millions
19. IR-Date: 2014-10-22
18
Incentives for nitrogen application remain supportive despite recent decline in grain prices
Continued nitrogen curtailments in China, Ukraine and other export regions
Capacity outside China: limited greenfield additions next two years; and gas availability uncertain for some locations
Strong European order book at start of fourth quarter
Expected further gas cost reduction of NOK 1.15 billion in Europe next two quarters
OFD acquisition completed in October, and Galvani completion due in fourth quarter
Prospects
20. IR-Date: 2014-10-22
19
Galvani acquisition (Brazil) improves raw material and production integration
Current assets:
–Three mining operations with a total production of ~500kt phosphate rock
–Two industrial sites with a total granulation capacity ~1,000kt
Future additions (partly replacement):
–~2 million tons phosphate rock from two new mines.
•Serra do Salitre (greenfield) 1,200 kt
•Santa Quiteria (greenfield) 800 kt
•Angico (brownfield) additional 150 kt
2013 Galvani EBITDA USD 48 million
Two existing fertilizer production sites
Three existing mining operations
Two new mining projects under development
Distribution terminal/Port import terminal
21. IR-Date: 2014-10-22
20
250 kt NPK and Calcium Nitrate expansion in Porsgrunn, Norway
Strong Downstream demand for additional value-added fertilizer volumes
Brownfield investment of NOK 2,250 million
Project adds 200 kt calcium nitrate and 50 kt compound NPK annual capacity
Enables further 150 kt NPK and 35 kt calcium nitrate annual capacity in Glomfjord and Uusikaupunki through optimization
Completion during 2017
22. IR-Date: 2014-10-22
21
YaraLiva benefits cash crops in particular
YaraLiva provides soluble and strength-building calcium, alongside nitrate-N (15.5%)
Products containing calcium nitrate as the key component are sold under YaraLiva brand
Calcium used for good rooting, stress-free growth, strong cell walls, improved fruit quality and better storage.
Stable pricing, typical range 400 – 600 USD/t1
Yara’s current annual capacity approximately 1.1 million tons2
1)Prices are before freight, and other handling cost. Products sold at different points in value chain, and reflects different types of product. 2) Dry product equivalents
25. IR-Date: 2014-10-22
24
NOK millions
Total Yara contribution
Value-added upgrading and distribution make
up larger part of Yara’s contribution
9,000
8,000
5,000
7,000
6,000
4,000
3,000
2,000
1,000
0
1Q10 1Q14 3Q14
Commodity Europe
Commodity overseas
Upgrade & distribution
Trade
3Q10 1Q11 3Q11 1Q12 3Q12 1Q13 3Q13
27. IR-Date: 2014-10-22
26
4.0
4.4
4.2
4.4
4.1
3.3
2.5
2.3
2.9
3.4
3.5
4.0
3.6
3.9
5.2
4.6
3.9
3.9
4.0
4.8
5.7
7.6
8.3
8.3
8.6
7.9
7.7
8.1
8.3
8.3
8.5
7.5
7.8
8.1
6.1
6.7
7.1
4.7
6.6
9.0
9.5
9.2
9.0
9.3
9.1
9.1
10.3
11.1
10.3
10.1
10.7
9.7
7.6
7.0
8.39
8.99
6.6
7.6
10.1
11.1
10.9
10.8
11.0
11.0
10.8
11.4
11.5
11.9
10.8
11.2
11.3
9.2
7.5
8.7
9.5
0
2
4
6
8
10
12
14
2009
2010
1Q11
2Q11
3Q11
4Q11
1Q12
2Q12
3Q12
4Q12
1Q13
2Q13
3Q13
4Q13
1Q14
2Q14
3Q14
4Q14
1Q15
US gas price (Henry Hub)
Yara Global
Zeebrugge day ahead
Yara Europe
Gas & oil cost
USD per MMBtu
Source: Yara, World Bank, Platts
Yearly averages 2009 – 2010, quarterly averages for 2011-15 with forward prices* for 4Q14 and 1Q15
*Dotted lines denote forward prices as of 14 October 2014
28. IR-Date: 2014-10-22
27
Currency exposure affecting Profit & Loss
At the beginning of the fourth quarter 2014
1.The US dollar debt generating profit & loss exposure was USD 1,400 million
•Kept as hedge of future earnings and to finance inventories in emerging markets
•Around 60% towards BRL with the rest towards other emerging market currencies, NOK and EUR
•The debt level in emerging markets will fluctuate with fertilizer seasons
2.Additional profit & loss exposure from internal currency positions vs. NOK
•Payables mainly CAD (200 million)
•Receivables mainly EUR (320 million)
37. IR-Date: 2014-10-22
36
Source: USDA October 2014
For 2014/15, global grain production expected to moderately exceed consumption
1 950
2 000
2 050
2 100
2 150
2 200
2 250
2 300
2 350
2 400
2 450
2 500
06
07
08
09
10
11
12
13
14E
15F
Million tons
Consumption
Production
Grain consumption and production
Days of consumption in stocks
55
60
65
70
75
80
85
06
07
08
09
10
11
12
13
14E
15F
Days
38. IR-Date: 2014-10-22
37
12.1
2.4
9.7
9.3
2.4
11.7
0
2
4
6
8
10
12
14
Production
Export
Domestic
Domestic
Export
Production
Million tons
4.8
5.0
5.2
5.4
5.6
5.8
6.0
6.2
6.4
6.6
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Million tons
13/14
Source: BOABC, CFMW
12/13
Production not increasing
Chinese urea production
Domestic urea balance
Jul-Aug 13/14
Jul-Aug 14/15
-5%
14/15
39. IR-Date: 2014-10-22
38
Source: CRU urea update September 2014 . Consumption data source is IFA.
Year
Driving regions
Urea capacity growth relative
to nitrogen capacity
Excluding China
Excluding China
2014
Algeria 16% Egypt 15%
1.5%
2015
Saudi Arabia 20%
USA 19%
2.1%
2016
USA 42%
India 11%
2.3%
2017
Nigeria 32%
USA 24%
2.2%
2018
Nigeria 55%
Russia 17%
1.3%
Gross annual addition 2014-2018
~1.9%
Assumed annual closures
~0.5%
Net annual addition 2014-2018
~1.4%
Trend consumption growth from 2002
2.1%
Projected nitrogen capacity additions outside China
40. IR-Date: 2014-10-22
39
-
1 000
2 000
3 000
4 000
5 000
6 000
Kilotons
Finished fertilizer
Urea
Nitrates
Compound NPK
Other
Yara stocks: normal level, adjusted for Bunge
Bunge Fertilizer included from 3Q 2013
41. IR-Date: 2014-10-22
40
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
Jul
Aug
Sep
Oct
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Index
June 2007=1
13/14
08/09
09/10
10/11
11/12
12/13
14/15
Source: Fertilizers Europe, Yara estimate for September
European producer nitrate stocks ending the season close to average
42. IR-Date: 2014-10-22
41
-200
-100
0
100
200
300
400
500
Jan-07
Jul-07
Jan-08
Jul-08
Jan-09
Jul-09
Jan-10
Jul-10
Jan-11
Jul-11
Jan-12
Jul-12
Jan-13
Jul-13
Jan-14
Jul-14
Thousand contracts
Source: US Commodity Futures Trading Commission
Non-commercials’ net long position in corn
43. IR-Date: 2014-10-22
42
Key value drivers – quarterly averages
308
314
338
299
320
336
354
414
358
358
3Q13
4Q13
1Q14
2Q14
3Q14
Urea prilled fob Black Sea (USD/t)/Urea granular fob Egypt (USD/t)
294
291
345
354
309
3Q13
4Q13
1Q14
2Q14
3Q14
CAN cif Germany (USD/t)
3.6
3.8
5.2
4.6
3.9
3Q13
4Q13
1Q14
2Q14
3Q14
US gas price Henry Hub (USD/MMBtu)
10.1
10.7
9.7
7.6
7.0
3Q13
4Q13
1Q14
2Q14
3Q14
Zeebrugge day ahead (USD/MMBtu)
6.0
6.1
6.1
6.0
6.3
3Q13
4Q13
1Q14
2Q14
3Q14
NOK/USD exchange rate
430
417
438
485
488
3Q13
4Q13
1Q14
2Q14
3Q14
Ammonia fob Black Sea (USD/t)
Source: Fertilizer Market Publications, CERA, World Bank, Norges Bank