Yara International Continues To Execute Well In A Turbulent Market
Stephen Simpson, CFA
Stephen Simpson, CFA
Thu, Apr. 21, 9:03 AM
Tue, Apr. 12, 4:00 AM
- Danske Bank downgrades Yara International to Hold from Buy.
- Price target NOK 335. Implied upside 8%.
- Yesterday, HSBC downgraded Yara to Reduce from Hold and cut its price to NOK 285. Implied downside 8%. Firm said it expects fertilizer prices will remain depressed.
- Now read Yara International's Q4 earnings call »
Thu, Apr. 7, 4:59 PM
- Yara International (OTCPK:YARIY) acknowledges it made “unacceptable payments” to executives at a Russian-owned phosphate producer, confirming a report partly based on the “Panama Papers” and shedding new light on a corruption scandal which led to Norway’s biggest-ever corporate fine in 2014.
- The broader police investigation concluded in 2014 when Yara agreed to pay a NOK295M fine ($35.6M) after admitting to paying bribes in Libya, India and Russia.
- The amount of the "unacceptable payments" is still not known.
Wed, Apr. 6, 9:17 AM
- Vale (NYSE:VALE) cuts its 2016 capex outlook to $5.5M from $6.2M previously, and reiterates in a presentation that it plans to sell core assets in an attempt to lower its debt by $10B.
- Vale says its free cash flow already is near balance for the year and expects solid cash generation in 2016 regardless of price conditions in iron ore markets.
- Separately, Brazilian newspaper Valor reports Vale could sell a minority stake in its fertilizer unit by the end of the year, possibly to Norwegian fertilizer maker Yara International (OTCPK:YARIY), in a deal that could fetch $1.2B.
- Now read Vale confirms sale of CSA steel plant stake to ThyssenKrupp
Thu, Feb. 11, 9:27 AM
- Yara International ASA ADR (OTCPK:YARIY): Q4 EPS of NOK1.58
- Revenue of NOK25.72B (-1.9% Y/Y)
Thu, Feb. 11, 7:53 AM
- Yara International ASA ADR (OTCPK:YARIY): Q4 EPS of NOK 1.47
- Revenue of NOK 2.62B (+1.9% Y/Y)
Sep. 15, 2015, 7:58 AM
- Praxair (NYSE:PX) agrees to acquire carbon dioxide and dry ice assets from Norwegian fertilizer supplier Yara International (OTCPK:YARIY) for €312M ($353M) to expand its activities serving the food and beverage sector in Europe.
- PX says the acquisition is part of its effort to expand in regions where it can gain cost savings as well as “enhancing our presence in non-cyclical segments such as food and beverage."
- Yara’s European carbon dioxide unit operates three CO2 ships, seven terminals, six dry ice production facilities and five CO2 liquefaction plans; Yara will continue to operate three of the liquefaction plants.
Jul. 1, 2015, 8:14 AM
- CF Industries (NYSE:CF) agrees to acquire the remaining 50% equity interest in GrowHow UK Ltd. from Yara International (OTCPK:YARIY) for $580M.
- CF has now agreed to buy out Yara's interest in the 50/50 joint venture operating the GrowHow production units in Britain that was formed in 2010.
- GrowHow owns and operates two nitrogen production facilities in the U.K. with a combined capacity to produce ~0.9M short tons of gross ammonia, 1.2M short tons of AN and 0.4M short tons of NPK compounds.
Mar. 30, 2015, 10:59 AM
- Yara International (OTCPK:YARIY, OTCPK:YRAIF) hires Svein Tore Holsether, the head of Swedish aluminum products company Sapa, as its new CEO.
- The Norwegian fertilizer maker company originally had hired Norsk Hydro CEO Svein Richard Brandtzaeg for the job, but he withdrew before taking up the post when Yara began merger talks with CF Industries last September; during the talks, Yara fired its then-CEO Joergen Ole Hasslestad and promoted Torgeir Kvidal to acting CEO.
- Kvidal now will return to his former position of CFO.
Feb. 19, 2015, 7:09 AM| Feb. 19, 2015, 7:09 AM
Oct. 22, 2014, 11:59 AM
- Norwegian fertilizer producer Yara (OTCPK:YARIY -1.6%) reports a 9% Y/Y rise in net profit on rising revenue, and says it will invest 2.25B kroner ($343M) to boost production capacity at the Porsgrunn plant in Norway.
- Yara's Q3 net profit totaled 1.71B kroner vs. 1.57B in the year-ago quarter but short of analyst consensus estimate of 2.24B kroner.
- Q3 revenue totaled 24.1B kroner, above 20.6B a year ago and expectations this quarter for 21.6B; EBIT was 2.76B, up from 2.39B a year ago but below expectations of 3.16B.
Oct. 16, 2014, 6:35 PM
- CF Industries (NYSE:CF) and Yara International (OTCPK:YARIY) have terminated merger talks that would have created the world's largest maker of nitrogen-based crop nutrients.
- “Although we identified very significant operational and structural synergies, we were ultimately unable to agree on terms of a transaction that met the requirements of all our respective shareholders,” CF says.
- CF and Yara said Sept. 23 that talks toward a “merger of equals” were at an early stage.
- CF -3.1% AH.
Oct. 7, 2014, 7:52 AM
- Yara International (OTCPK:YARIY) says Jorgen Ole Haslestad has resigned as CEO amid merger talks with CF Industries (NYSE:CF), and has appointed Torgeir Kvidal as acting CEO.
- Yara and CF Industries said last month they were in merger talks to form the world's biggest producer of nitrogen fertilizers, but Yara says Haslestad "would not have a role in a potential merged company."
- Kvidal has been Yara's CFO since 2012 and joined Norsk Hydro in 1991, before the Yara de-merger in 2004; Haslestad has been CEO since 2008, and had said he planned to retire when Yara appointed a new CEO.
Oct. 2, 2014, 2:59 PM
- Fertilizer producers are mostly lower after Agrium (AGU -1.9%) announced weak guidance for H2 of its FY 2014: POT -2%, MOS -0.9%, OTCPK:YARIY -2.8%, IPI -2.3%, RNF -1.2%, but CF +2.4%.
- Canaccord and Piper Jaffray downwardly revised their 12-month price targets for the stock, by a respective 1.9% to $102 while reiterating a Buy rating and by 4.2% to $92 while maintaining a Neutral rating; however, BMO and RBC each reiterated their Outperform ratings on the stock with respective target prices of $99 and $115.
- Jim Cramer thinks AGU's woes could reverberate throughout the ag sector, at least in the near-term, with selling possibly spread to the likes of Monsanto (MON -0.4%), Syngenta (SYT +0.1%), Deere (DE +0.1%) and Agco (AGCO +1%).
Sep. 26, 2014, 9:48 AM
- Yara International (OTCPK:YARIY) is again hunting for a new leader after Norsk Hydro (OTCQX:NHYDY) CEO Svein Richard Brandtzaeg reverses his decision to take the top job, partly due to Yara's merger talks with CF Industries that could create the world’s largest fertilizer supplier.
- Brandtzaeg felt Yara breached its contract because he agreed to join the company July 18 but was not aware of the CF talks until he was informed Sept. 9, according to a Norsk Hydro spokesperson.
Sep. 23, 2014, 5:58 PM
- Talks that could lead to the creation of a new fertilizer producing giant are the latest example of how the boom in natural gas from fracking is transforming not just the world of U.S. energy but other industries too, a Bloomberg analysis says.
- CF Industries (NYSE:CF) and Yara International (OTCPK:YARIY) said today they’re in preliminary talks about a merger, and both companies use gas to capture nitrogen from the air to make crop nutrients; the advantage of doing that in the U.S. is stark, as CF’s operating profit margin was 43% last year vs. Yara’s 9.2%.
- Yara needs to have a meaningful business in the U.S. to become a global player; CF’s motivation in talking to Norway-based Yara may be to expand beyond the U.S. in anticipation of rising domestic fertilizer supplies, which may put pressure on prices.
- A combined CF-Yara would have ~$19B in sales, more than any other fertilizer company.
Yara is a chemical company with fertilizer application as its biggest market. Yara converts energy and nitrogen from the air into useful products for farmers and industrial customers.
Sector: Consumer Goods
Industry: Food - Major Diversified
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