The following is a summary of the Yara International ASA (YARIY) Q2 2024 Earnings Call Transcript:

Financial Performance:

• EBITDA for Q2 2024 is $513 million, significantly higher compared to the same quarter last year.

• Return on invested capital (ROIC) for Q2 2024 is reported at 6.1%, still below the company's target of 10%.

• Net debt decreased by $366 million, bringing the net debt-to-equity ratio and net debt-to-EBITDA ratio to within the company's financial policy range.

• Earnings per share were affected by a $126 million currency loss and a high effective tax rate of 92%, primarily due to non-recognition of deferred tax assets in Brazil.

Business Progress:

• Introduced a cost and CapEx reduction program aiming to cut fixed cost by $150 million and CapEx by $150 million by the end of 2025.

• Significant improvements in ammonia production noted, with a 26% increase in the first half of 2024 compared to the same period in 2023.

• Plans to focus investments on high return core assets while considering restructuring or divesting lower-return assets.

Opportunities:

• Expecting to leverage a tightening nitrogen market to support improved margins and value-accretive growth.

• Strategic focus on core ammonia and nitrogen-based products provides Yara the flexibility to mitigate potential regulatory and market changes effectively.

Risks:

• Flooding in Brazil resulted in substantial impacts including an inventory write-down of approximately $17 million and lost volumes amounting to $8 million for the quarter.

• The effective tax rate skyrocketed due to tax losses in Brazil not being recognized as deferred tax assets.

More details: YARA INTERNATIONAL ASA SPON ADR EACH REP 0.50 ORD SHS IR

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