Yara International (YAR) Q4 2021 earnings summary

Executive summary

• 2021 underlying performance strengthened: EBITDA excluding special items rose 34% YoY as higher product prices more than offset higher energy and fixed costs. Net income fell amid impairment charges.

• Strategy centers on operational excellence and expanding commercial offerings, with a new ambition to grow a nature-positive food future and pursue climate neutrality by 2050.

Financial highlights

• Revenue and other income rose 42% to $16.607B; reported EBITDA was $2.804B vs. $2.223B, while adjusted EBITDA excluding special items was $2.891B vs. $2.161B.

• Operating income was $1.068B vs. $1.176B; net income attributable to parent shareholders was $384M vs. $691M.

• Basic EPS was $1.75 vs. $2.58; adjusted EPS excluding currency and special items was $4.73 vs. $3.08.

• Net cash from operations was $1.406B vs. $2.047B; net interest-bearing debt ended at $3.930B, up from $2.930B.

Outlook and guidance

• 2022 investment expected at $1.5B, including $0.4B of phasing from 2021; average annual investment excluding phasing capped at $1.2B from 2022.

• Targets include ROIC above 10% mid-cycle, scope 1 and 2 emissions down 30% by 2030 from 2019, and climate neutrality by 2050.

• New business models target incremental EBITDA of $300–600M by 2025; 2025 targets include $1.5B revenue from new business models and $1.2B from online sales.

• Market outlook was supportive entering 2022, with robust nitrogen demand, tight supply and low global inventories at year-end 2021; new nitrogen projects were projected to increase in 2022.