Norway's Yara Q3 EBITDA and net income decline
Norway's Yara Q3 EBITDA and net income decline
Overview
Norwegian crop nutrition producer's Q3 adjusted EBITDA and net income declined yr/yr
Higher European gas prices and deferred demand weighed on margins and deliveries
Company expects Gulf Coast Ammonia acquisition to increase gas diversification upon closing
Outlook
Yara says European order book is stronger than normal entering the new season
Company expects significant seasonal nitrogen demand remains to be placed for 2027 season
Yara says Gulf Coast Ammonia acquisition will reduce European energy exposure upon closing
Result Drivers
EUROPEAN GAS COSTS - Higher European gas prices weighed on margins and deliveries, according to the company
DEFERRED DEMAND - Company said global 2027 season buying was significantly behind previous years, impacting deliveries
PRODUCTION RELIABILITY - Plant-specific reliability issues affected production volumes, per CEO Svein Tore Holsether
Company press release: ID:nWkr5FLNyh
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Net Income |
| $199 mln |
|
Q3 Adjusted EBITDA |
| $675 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 11 "hold" and 5 "sell" or "strong sell"
The average consensus recommendation for the agricultural chemicals peer group is "buy."
Wall Street's median 12-month price target for Yara International ASA is NOK455.00, about 13.2% above its October 21 closing price of NOK402.00
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 7 three months ago
Reuters Recommended Reads
Oct 19 - Norway may see 17 TWh power deficit from 2035, grid operator report warns
Oct 19 - East European states want more EU fund flexibility to support industry as energy prices rise
Oct 20 - Neste urges EU to ease rules on biofuel feedstocks amid energy crunch
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)