Global fertiliser giant Yara has signalled increased fertiliser prices for farmers in 2021, as it reported double-digit growth in profits for its 2020 financial year. The Norway-based fertiliser company reported a 19% increase in operating profits to €115m for its 2020 financial year, as operating profit margins jumped to 10%.

Earnings increased 6% to €217m, while net debt fell to just €286m.

Overall, Yara recorded a 9% decline in total sales for 2020 to just over €1.1bn, due to weak fertiliser sales prices for most of the year. Yara said it produced over 38m tonnes of fertiliser in 2020.

In recognition of the strong profit growth, Yara increased its full year dividend payout to shareholders to €1.95 per share, which will see more than €520m in cash paid out to shareholders.

However, in its outlook for 2021, Yara said it expects rising grain prices around the world to drive fertiliser demand from farmers this year.

Additionally, Yara said lower fertiliser production in China and rising natural gas prices will drive up the cost of finished fertiliser.