Q4 2024 Yara International ASA Earnings Call Transcript
Key Points
- Yara International ASA (YARIY) is progressing with its Clean Ammonia projects, with plans to make a final investment decision by the first half of 2026, indicating confidence in the project's profitability.
- The company is targeting a $150 million cost reduction by the end of 2025, with significant savings expected from FTE reductions and external cost cuts.
- Yara International ASA (YARIY) has a positive outlook on the nitrogen market, with expectations of tightening global nitrogen markets due to factors like delayed US import seasons.
- The company is exploring various equity funding structures for its Clean Ammonia projects, indicating flexibility and strategic planning in capital management.
- Yara International ASA (YARIY) is leveraging its global ammonia import capacity and fleet capacity, providing multiple options for strategic growth and value creation.
- The decision to lower the dividend payout for 2024 reflects a cautious approach due to high leverage and low free cash flow in the current quarter.
- Yara International ASA (YARIY) is facing challenges with its working capital, currently at 108 days, which is above the target of 90 days.
- The company has mothballed its Hull plant in the UK, indicating operational challenges possibly related to gas costs.
- There is uncertainty regarding Chinese export policies, which could impact global fertilizer market dynamics.
- Yara International ASA (YARIY) is dealing with high tax rates due to unrecognized deferred tax assets in certain regions, affecting adjusted EPS figures.
Good day and welcome to Yara's fourth quarter results. 2024 conference call. (Operator Instructions)
I will now turn it over to Maria Gabrielsen, Head of Investor Relations in Yara. Please go ahead.
Hello, and welcome to everyone. I'm here together with the representatives from Yara management, including our CEO, Svein Tore Holsether; CFO, Thor Giæver; EVP, Corporate Development, Magnus Ankarstrand; and our Head of Market Intelligence, Dag Tore. We hope everyone watched today's presentation. So we plan to go straight into questions.
So operator, you may please open the first line.
Questions & Answers
Lisa De Neve, Morgan Stanley.
Hi, good morning and thank you for taking my questions. I have two questions, please. The first question is -- I mean can you please share on why you have decided to perform the FID on the Clean Ammonia
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