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:

Key Details

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.)