Yara presents financial results and announces cost reduction program

In the second quarter of 2024, Yara presented an EBITDA (earnings before interest, taxes, depreciation and amortization) excluding special items of US$513 million, compared to US$252 million recorded in the same period of 2023. Net profit was US$ 3 million, recovery compared to the loss of US$ 298 million in the previous year.

Furthermore, in an initiative to strengthen financial performance and improve shareholder returns, Yara is launching a cost and investment reduction program.

In its statement to investors, the company highlighted:

• EBITDA excluding special items: US$513 million, reflecting improved margins.

• Strong cash conversion: release of US$500 million in operating capital.

• Reduction of costs and investments: initiative to reduce US$ 150 million in costs and 150 million dollars in investments.

• Improvement in financial position: to be achieved with cost reductions and tighter nitrogen supply.

"I am pleased to see improved results, with higher margins and deliveries in a more stable pricing environment. However, returns are not yet at satisfactory levels. We have been through turbulent and volatile years that Yara navigated well, but now we need adjust our priorities and cost base to improve the company's profitability," said Svein Tore Holsether, President and CEO of Yara.

Cost and investment reduction program

Yara's cost and investment reduction program aims to reduce fixed costs by US$150 million and investments by US$150 million by the end of 2025.

According to the company, this will be achieved through a targeted approach, prioritizing high-return core businesses and reducing marginal return activities.

"Yara has unique competitive advantages as an integrated nitrogen producer, with a global footprint of downstream assets and operations. This gives us scale, flexibility and options in how to optimize our business, including our ammonia production and trading, and positions Yara well for profitable decarbonization. With a more defined strategic focus and growing demand for low-carbon agricultural solutions, Yara is poised to increase value creation and shareholder returns in the future,” concluded Holsether.