Yara International (YAR) Q4 2022 earnings summary

Executive summary

• 2022 revenue reached USD 24.051B, operating income USD 3.827B, EBITDA USD 4.959B and net income USD 2.782B; ROIC rose to 25.7% from 7.9%.

• Operations navigated the war in Ukraine, extreme energy-price volatility and supply disruptions; alternative sourcing helped avoid material production losses from raw-material shortages.

• Strategic progress included clean-ammonia projects, a first cross-border CO₂ transport and storage agreement, and expanded digital and regenerative-farming initiatives.

Financial highlights

• Revenue and other income was USD 24.051B vs USD 16.607B in 2021; operating income was USD 3.827B vs USD 1.068B.

• EBITDA was USD 4.959B vs USD 2.804B; adjusted EBITDA excluding special items was USD 4.889B vs USD 2.891B.

• Net income was USD 2.782B vs USD 384M; basic EPS was USD 10.90 vs USD 1.75. Adjusted EPS excluding currency translation and special items was USD 10.98 vs USD 4.73.

• Operating cash flow was USD 2.391B vs USD 1.406B; investing cash outflow was USD 509M vs USD 874M.

Outlook and guidance

• 2023 investment plans total ~USD 1.7B, including USD 0.5B of investment phasing from 2022; capex guidance remains max USD 1.2B annual average, subject to inflation adjustments.

• The 2023 priorities include operational excellence and asset resilience, scaling digitalization and traceability, and growing regenerative-agriculture offerings.

• Proposed dividend is NOK 55/share for FY22, bringing total cash returns paid and proposed for 2022 to NOK 65/share; a new buyback program was intended for proposal to the AGM.

• Catch-up demand potential was seen in most regions as lower fertilizer prices improved farmer affordability and profitability after purchase delays late in 2022 and early 2023.