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Investing.com -- Shares of Yara International (OL:YAR)(OTC:YARIY) fell more than 6% on Friday after the Norwegian fertilizer company reported fourth-quarter earnings that came in below analyst expectations.
Yara reported an EBITDA of $519 million for the quarter, slightly missing the consensus estimate of $523 million.
The company also declared a dividend of NOK 5 per share, which was well below the NOK 11 expected by the broader market.
Despite reporting higher-than-expected group sales of $3.42 billion, up 8% from Jefferies’ estimates, the company saw declining profitability in key regions.
In the Americas, EBITDA dropped 54% compared to Jefferies’ forecast, reflecting lower commercial and production margins.
Europe, while seeing a 16% sales increase over estimates, posted a lower-than-expected EBITDA due to higher gas and ammonia costs.
Meanwhile, operations in Africa and Asia saw a strong EBITDA increase, but sales volumes were down, partially due to disruptions from flooding in Thailand.
Adding to investor concerns, Yara provided no forward-looking guidance, a departure from expectations, though it did indicate that a previously anticipated cost benefit from lower gas prices would instead turn into a $310 million headwind in the first half of 2025.
The company also announced a delay in the final investment decision for its Blue Ammonia project, shifting from the second half of 2025 to the first half of 2026.
Jefferies analysts, who have an "underperform" rating on Yara with a NOK 300 price target, said they expect only a muted or slightly positive share price reaction in the longer term.