Fertilizer maker Yara tops Q3 profit expectations

Yara International reported its core earnings for the third quarter above expectations on Friday. The company cited record production as well as its focus on core business to increase profitability.

The third-quarter earnings (EBITDA) before interest, taxes, depreciation and amortisation, excluding items that affect comparability, increased by more than 47% compared to a year ago, reaching $585 million. A poll conducted by the company showed that analysts had expected $482 million on average.

In a statement, CEO Svein Holsether stated that "Yara has delivered an all-time record production performance this quarter and strong premiums. This is a testament to our robustness and value of our core businesses."

While European deliveries remain below pre-2022 levels amid higher raw material costs, Yara said improved margins from phosphate-rock upgrading and stable potash prices led to stronger-than-expected results, setting it up for profitability once market conditions stabilize.

The company also cited stronger third-party sales from Brazil as the reason for its earnings increase.

Yara stated that the cost of purchasing natural gas for the fourth quarter was expected to be the same as last year, but in the first quarter 2025 it is projected to increase by $60 million.

As fertilizers require large amounts of gas, the price of these products increased after Russia invaded Ukraine. This made them more expensive to buy and to produce. Reporting by Jesus Calero, Gdansk. Editing by Milla Nissi

(source: Reuters)