Norway's Yara International, one of the world's largest producers of fertilisers, has today reported fourth-quarter core earnings down 45% year-on-year, though they still beat expectations.
Yara also said it would sharply reduce its dividend.
Fourth-quarter earnings before interest, tax, depreciation, amortisation (EBITDA) excluding one-off items fell to $586m from $1.07 billion a year earlier, but still beating the $369m expected by analysts in a company-provided poll.
The company will pay a dividend for 2023 of 5 crowns ($0.47) per share, against expectations for 15 crowns by analysts, and down from 55 crowns in 2022.
"Following strong financial results in 2022, the results in 2023 were impacted by significantly lower market prices and one-off position effects," CEO Svein Tore Holsether said in a statement.
Facing stiff competition on global markets from Russia and others, Yara's results tumbled last year as falling fertiliser prices squeezed margins even as the cost of natural gas, a key input, declined.
Looking ahead, Yara said it expected markets to be "more volatile" though demand for fertilisers appeared to be picking up, as farmers in the northern hemisphere prepare for the planting season in spring.
"The start of 2024 has seen increased buying activity and higher prices," Yara said.
On the cost-side, Yara said that natural gas, a major cost of production for fertiliser-makers, was expected to be $320m and $100m cheaper in the first and second quarters, respectively, than at the same time a year ago.
