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Norwegian fertilizer company Yara International reported net income after non-controlling interests of 3.95bn kroner (US$499mn) in 2017, down sharply from the 6.36bn kroner reported the year before, primarily reflecting lower margins.
Revenue and other income fell to 93.8bn kroner in the year compared to 97.2bn kroner in 2016, while Ebitda dipped to 11.1bn kroner from 15.6bn kroner the previous year, the company said in an earnings release.
Yara's total fertilizer deliveries were flat compared with 2016. In Brazil, 2017 fertilizer deliveries totaled 9.04Mt, slipping from 9.21Mt in 2016, driven by lower deliveries of blended commodity products, Yara said.
According to the company, the main growth investments during the fourth quarter of last year were the Rio Grande plant modernization project and the Salitre mining project (both in Brazil), amounting to around 950mn kroner.
In November 2017, Yara entered into an agreement to acquire the Vale Cubatão Fertilizantes complex in Brazil from local miner Vale for an enterprise value of US$255mn.
"Yara expects to make upgrading investments of approximately US$80mn up to 2020 in order to realize annual synergies of US$25mn through a combination of cost, asset and product portfolio optimizations," the company said in the release.
Closing of the deal is expected to take place in mid 2018, according to Yara.
In Latin America, Yara is currently building facilities in Cartagena and Buga in Colombia, as well as in Masagua, Guatemala.