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 Jul. 21, 2024 Source: Yara International Yara reports second-quarter EBITDA excluding special items1 of USD 513 million compared to USD 252 million in second quarter 2023. Net income was USD 3 million compared with a net loss of USD 298 million a year earlier. To strengthen financial performance and improve shareholder returns going forward, Yara is initiating a cost and capex reduction program. Second-quarter 2024 highlights: •EBITDA excluding special items1 of 513 MUSD, reflecting improved margins •Strong cash conversion with 500 MUSD operating capital release •150 MUSD cost reduction1, 2 and 150 MUSD capex reduction initiated2 •Financial position set to improve with cost reductions and tightening nitrogen supply "I'm pleased to see improved results, with higher margins and deliveries in a more stable price environment. However, returns are not at satisfactory levels. We have been through turbulent, volatile years which Yara has navigated well, but we now need to adjust our priorities and cost base, to improve Yara's profitability," said Svein Tore Holsether, President and Chief Executive Officer. A cost and capex reduction program has been initiated, with the aim to reduce fixed costs by 150 MUSD and capex with 150 MUSD by the end of 2025. This will be achieved through a targeted approach, prioritizing high-return core business, and scaling down tail-return activities. By optimizing costs and strengthening the balance sheet, Yara's financial performance is set to improve, enabling funding of value-accretive growth and increased shareholder returns. "Yara has unique competitive edges as an integrated nitrogen producer with a global asset footprint and downstream presence. This gives us scale, flexibility and optionality in how we optimize our business, including our ammonia production and trade, and it positions Yara well for profitable decarbonization. With a sharpened strategic focus and growing demand for low-carbon crop solutions, Yara is set to increase value creation and shareholder returns going forward", said Holsether. To read the entire report click here. Tweet |
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