DOW JONES NEWSWIRES 

Yara International ASA Friday said it expects an Ebitda of approximately NOK3.0 billion for 4Q '10, up from NOK1.39 billion the same quarter '09, as fertilizer prices have increased substantially during '10.

   MAIN FACTS: 

-"The result will be the best 4Q so far for Yara," the company said.

-Yara added that despite the strong earnings improvement, the 4Q results are below financial market expectations due to Burrup write-downs, delays in deliveries, phasing of sales within the quarter and somewhat higher fixed costs than in 3Q.

-"In light of the positive market development globally and in Europe, Yara has deferred some sales into '11 to benefit from the positive price trend. Sales volumes towards the end of the quarter were lower than in the beginning of the quarter, and realized price increases in Europe were thus lower than the average list price increase from third to fourth quarter," the company said.

-The effect from this is estimated to be NOK200 million, compared with a situation with stable volumes through the quarter.

-Yara also said that its own produced nitrate sales were 240,000 tons below 3Q in 4Q, due to higher sales from inventory in 3Q and the previously communicated maintenance stop in Yara's Ambes plant.

-The Ebitda effect is estimated at NOK250 million compared to 3Q, and Yara has during Jan. increased nitrate fertilizer prices substantially, with deliveries running well.

-Yara said that the 4Q results will be also be charged with an estimated NOK165 million in write-downs related to balance sheet items in Burrup Fertilisers Pty Ltd (BFL) following findings in the ongoing Yara-initiated investigations of financial irregularities in the JV.

-The remaining asset value for Yara's stake in BFL is approximately NOK1.7 billion.

-4Q fixed costs excluding performance-related pay is seen at same level as 4Q '09.

-Costs related to environmental accruals, higher maintenance activity, restructuring and other non-recurring items are approximately NOK150 million higher than in 3Q '10.

-"The global fertilizer market is tight as global agricultural prices are at all-time high levels and all fertilizer capacity outside China, which has implemented high export taxes, aim to run at full capacity," Yara said.

-No further details of Yara's fourth-quarter financial results will be released before the scheduled publication on 15 Feb.

-By Stockholm Bureau, Dow Jones Newswires; +46-8-5451-3090; djnews.stockholm@dowjones.com