Yara CEO Svein Tore Holsether signalled his concerns for the European fertiliser industry as he announced fourth quarter results on Wednesday. While delivering a strong set of results, he highlighted concerns about the US Inflation Reduction Act, which will drive much needed decarbonization momentum, according to Holsether. He added that European authorities need to match the US with bold action, saying that Europe risks losing its ability to decarbonize and important existing industry if it fails to act.

Improved margins

Improved margins in Q4 more than offset lower deliveries for Yara, with Q4 profit up almost 60% on the previous year to the equivalent of €991m ($1,067m). Within Europe, higher fertiliser prices more than offset increased production costs and lower deliveries, according to Yara.

ADVERTISEMENT

For the full year, Yara’s profit was up 71% to €4,610m ($4,959m), again driven by higher margins with higher prices more than offsetting increased production costs and lower deliveries.

Looking to the season ahead, Yara notes that fertiliser price declines have led to improved farmer affordability, with the prospect of increased demand in most regions. This is a welcome signal for farmers from the world’s largest nitrogen producer.