By Tristan Veyet
(Reuters) – Yara International, one of the world’s largest producers of fertilizers, on Friday reported fourth quarter core earnings just below market expectations, but flagged a sharp hit from the strong U.S. dollar on its net result.
It reported a quarterly net loss of $290 million, mainly driven by a net foreign currency exchange loss of $260 million due to non-cash one-offs.
Yara’s shares dropped around 5% in early trading, making it the biggest loser on Europe’s benchmark STOXX 600 index.
Quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA), excluding special items, fell 9.9% to $519 million. That was slightly below analysts’ average estimate of $523 million in a company-provided poll.
The adjusted core profit was impacted by lower nitrogen upgrading margins, the Norwegian group said.
Yara also said it would propose a dividend of 5 Norwegian crowns per share to be paid for 2024.
“We’re also progressing well on our cost and capex reduction program, with a USD 90 million reduction achieved in 2024,” Holsether added in a statement.
The group initiated a $150 million cost reduction and $150 million capital expenditure reduction programme in July to improve its financial performance and shareholder returns.
($1 = 11.2075 Norwegian crowns)
(Reporting by Tristan Veyet in Gdansk, editing by Milla Nissi)
