Norwegian fertilizer producer Yara posted an increase in its output, earnings and deliveries in January-March compared with the previous year.
Yara's finished-fertilizer output in the first quarter rose to 4.9mn t, up by 6pc on the year, driven by increased demand. Yara's financial year runs from January to December.
Yara's first-quarter urea production stood at just over 1.1mn t, down by 5pc on the year, while nitrate output jumped to 1.48mn t, up by 19pc on the year. First-quarter NPK output also rose to 1.59mn t, up by 7pc on the year.
Its ammonia output in the quarter stood at 1.72mn t, marking a slight 1pc decline from the 1.74mn t produced a year earlier.
Yara's first-quarter fertilizer deliveries rose to 5.8mn t, up by 10pc on the year, mainly driven by Europe and Brazil.
Its first-quarter earnings before interest, taxation, depreciation and amortisation (Ebitda), excluding special items, stood at $638mn, a jump of 47pc from a year ago, owing to increased deliveries, mainly driven by Europe and Brazil, higher margins and reduced fixed costs.
US tariffs limit impact on urea markets
Although the geopolitical landscape is shifting rapidly, the US tariffs announced in April have had a "limited impact on the global urea markets so far but could lead to altering trade flows", according to Yara.
The producer's imports into the US are limited and represent less than 5pc of consolidated revenues and delivered volumes, it said.
Yara said that it is prioritising higher-return core assets and is therefore targeting a reduction of fixed cost and capex of $150mn by the end of 2025. The producer said that it is on track to ensure that the fixed cost run-rate inflation of $2.38bn pre-2026 will be achieved.
Yara expects to see a tightening global supply balance in the future as industry projections for supply growth for 2025 onwards are significantly below trend consumption growth.
"Combined with strong demand fundamentals, this indicates a tightening global supply/demand balance in the coming years, improving European production margins as gas prices are expected to be lower," Yara said. But China's export policy remains a key uncertainty, especially for the short-term global supply/demand balance.
