Oslo (2009-10-20): Yara International ASA reports increasing sales
volumes for main fertilizer products except NPK, but fertilizer
margins are substantially down from last year. Net interest-bearing
debt continued to decrease, primarily reflecting lower operating
capital.


Yara reports third-quarter net income after minority interest of NOK
349 million (NOK 1.21 per share), compared with NOK 3,175 million
(NOK 10.91 per share) last year. Excluding net foreign exchange gains
and special items, the result was approximately NOK 0.46 per share
compared with NOK 14.71 per share in third quarter 2008. EBITDA for
the quarter was NOK 860 million compared with NOK 6,089 million in
third quarter 2008.

"Our third-quarter results were non-satisfactory, mainly due to NPK
sales being hampered by high potash prices. However, fertilizer sales
are picking up as pipeline effects come to an end and food demand
growth remains robust. Farmers are increasing fertilizer purchases,
but deliveries in Europe and North-America continue to be subdued by
distributers still unwilling to build inventories for the spring
application. With a cost position supported by lower gas costs in
Europe, Yara has been able to take market share by running all
available straight nitrogen fertilizer capacity", said Jørgen Ole
Haslestad, President and Chief Executive Officer of Yara.

"NPK demand is expected to normalize when potash prices adjust to
more sustainable levels. Until this happens, Yara will continue to
curtail NPK capacity. We continued to reduce debt in the third
quarter through further NOK 3 billion reductions in operating
capital", said Jørgen Ole Haslestad.

Third-quarter fertilizer deliveries were up 10% on last year.
European fertilizer sales increased for all main product groups
except NPK. Volumes outside Europe were up 27% primarily in Brazil
and North America. Industrial margins improved strongly compared with
third quarter 2008, reflecting strong commercial management and
contract lag benefits. European oil and gas costs decreased in line
with Yara's second quarter guidance, reflecting lower oil-linked and
hub gas prices and Yara's decision to continue maximizing spot
exposure in its energy contracts.

Going forward, Yara will benefit  further from lower European  energy
costs, estimated  to  be NOK  1.2  billion lower  in  fourth  quarter
compared with last year.



Link to 3rd quarter webcast 20 October at 0930 CET
media01.smartcom.no/Microsite/start.aspx?eventid=4632



Contact


Torgeir Kvidal, Investor Relations
Telephone  (+47) 24 15 72 95
Cellular (+47) 91 33 98 32
E-mail torgeir.kvidal@yara.com

Asle Skredderberget, Media Relations
Cellular (+47) 41 44 36 10
E-mail asle.skredderberget@yara.com


Yara International ASA is the world's leading chemical company that
converts energy, natural minerals and nitrogen from the air into
essential products for farmers and industrial customers. As the
number one global supplier of mineral fertilizers, we help provide
food for a growing world population. Our industrial product portfolio
includes environmental protection agents that prevent air pollution.
Yara's global workforce of 8000 employees represents the great
diversity and knowledge that enables Yara to remain a leading
performer in the industry.
www.yara.com

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