Yara Profit Boosted by Sales Gain

By Kjetil Malkenes Hovland

OSLO--Norwegian fertilizer producer Yara International ASA (YAR.OS) said Wednesday it expected a boost from cheap European natural gas in the coming quarters, as third-quarter net profit more than doubled on the year, helped by a sales gain and cheaper energy.

Net profit was 4.04 billion Norwegian kroner ($496.84 million) compared with NOK1.71 billion a year earlier, as a NOK1.34 billion foreign exchange loss due to the stronger dollar was offset by the NOK3.20 billion gain from the sale of GrowHow U.K. Revenue rose to NOK30.48 billion from NOK24.10 billion a year earlier.

Excluding special items and foreign exchange losses, earnings-per-share were NOK7.41, compared with NOK7.62 a year earlier, the company said.

Third-quarter fertilizer prices fell on the year but were countered by higher deliveries, lower energy costs, and a stronger dollar, Yara said. Deliveries grew 1% on the year, mainly due to the acquisitions of OFD in Latin America and Galvani in Brazil.

The company expects European energy costs to be NOK550 million lower on the year in the first quarter, and NOK300 million lower on the year in the first quarter.

-Write to Kjetil Malkenes Hovland at [e-mail]

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October 21, 2015 02:44 ET (06:44 GMT)

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