Yara has reported that first-quarter earnings before interest, taxes, depreciation, and amortisation (EBITDA) in 2024 were $435 million compared to $487 million in first quarter of 2023, a decrease of 11%.

Net income was $16 million ($0.07cents per share) compared with $105 million ($0.41cents per share) a year earlier.

Total deliveries however were up 12% with European deliveries up 37% from Q1 2023.

In its latest financial report, Yara has also stated that there was reduced greenhouse gas (GHG) emission intensity due to the implementation of key projects.

President and chief executive officer of Yara, Svein Tore Holsether said: “This quarter’s results are down from same quarter last year as increased deliveries are offset by lower prices.

“Meanwhile, I am pleased to see that our efforts to decarbonise is yielding results. This is crucial to futureproof our business and be able to meet growing demand for low-carbon solutions.”

Yara results

According to Yara, despite strong urea supply in 2023, prices are generally demand-driven with positive production margins for even swing producers.

With farmer incentives at normal levels and 10-year consumption growth trending at 1.9%/yr, demand fundamentals are supportive for upcoming seasons, according to the company.

While the peak of new capacity additions is now over, Yara has said that urea supply is currently strong primarily due to increased production in India and China.

However, industry consultant projections show significantly lower supply growth from 2024 onwards. Combined with strong demand fundamentals, this indicates a tightening supply-demand balance longer term, the latest financial report outlined.

Holsether continued: “Total nitrogen imports to Europe are declining as European production is ramping up. However, Russian urea imports to Europe reached an all-time high last season and currently account for almost one third of total urea imports to the EU.

“While raw material sanctions and price pressure is taking a double toll on European industry, Russia is gaining market influence.

“That not only endangers European industry and the green transition, but it also makes European food production more vulnerable,” he added.

According to Yara, the energy transition, climate crisis, and food security remain top priorities globally.

Yara’s strategy is focused on further strengthening operational resilience and flexibility, and profitable growth in low-carbon solutions.

This, it said, will support the transformation of the global food system, generate long-term growth opportunities, and drive progress towards Yara’s ambition of growing a nature-positive food future.