Yara has today (Friday, October 25) reported third quarter (Q3) earnings before interest, taxes, depreciation, and amortisation (EBITDA), excluding special items, of $585 million, compared to $396 million in Q3 2023, an increase of over 47%.

The global fertiliser company, headquartered in Norway, said the financial performance reflected improved margins, more stable potash prices and improved sales margins in Brazil.

Net income in the period was $286 million compared with $2 million a year earlier.

Total deliveries were 3% lower compared with Q3 2023 year, driven by decreases in Europe, Americas and Africa and Asia.

Yara said that EBITDA in Europe, excluding special items, was 12% lower than for the same quarter a year ago, mainly due to lower margins following higher gas and ammonia cost, and lower deliveries.

The company reported significant increases in ammonia, finished fertiliser and industrial products both in Q3 2024 and year-to-date when compared with 12 months previously.

Yara said that while it has successfully navigated recent volatility by focusing on operational continuity, "recent returns have been below satisfactory levels".

Revenue at the company to the end of Q3 this year stood at $10.5 billion, compared to over $12 billion in the corresponding nine-month period in 2023.

Therefore, the company said that it is "taking action to improve profitability".

"This includes a stricter prioritisation towards core operations and high-return assets, while scaling back non-core and lower-return activities," it said.

In Q2 2024, Yara announced a cost and capex reduction programme targeting a reduction of fixed costs and capex by $150 million each by the end of 2025.

The company is also undertaking an asset portfolio review focused on sites with competitive scale and feedstock, access to key markets, profitable decarbonisation opportunities, operational flexibility and sustainable strong returns.

"With the combination of cost reduction, portfolio optimisation and a tightening nitrogen market, Yara’s financial position is set to strengthen with increased free cash flow and sustainable profitability," it said.

Commenting on the financial results, Svein Tore Holsether, president and chief executive of Yara, said:

“Returns are improving, and I am confident that we will succeed with the necessary changes to ensure sustainable profitability and increase shareholder returns through our sharpened focus on our core operations and value-accretive growth.”Founded in 1905, Yara has 18,000 employees and operations in more than 60 countries. In 2023, the company reported revenues of $15.5 billion.