"– The Yara share price is now lower than at any time in 15 years, mainly due to high European gas prices and an expected weak cash flow, as a result of planned investments in carbon-reducing production, says analyst Niclas Gehin at DNB Markets.
– In the long term, however, gas prices are expected to halve, and like other industrial companies, the company will probably have to tone down its ambitions to invest in blue ammonia factories in the US.
According to the analyst, this will contribute to a significant increase in the share’s expected dividends, which in turn could trigger a price increase."
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Yara (YAR) Price target 425 NOK Yara has reported better than expected figures for the last three quarters and the negative trend in earnings expectations seems to be turning upwards now. This is confirmed by the fact that the negative share price trend has also turned upwards. Management comments confirm that capital-intensive green investment projects with limited profitability may be cancelled. If they are cancelled, this could provide opportunities for higher dividends. The share is trading at 1.0x book value and with a direct yield of 6% (with upside potential if investments are cut), which we believe is attractive.
Yara International ASA is a fertilizer manufacturing company and one of the world’s largest producers of nitrogen fertilizers. In 2009, Yara International produced approximately a quarter of the fertilizers manufactured in Europe.
Yara was spun off from Norsk Hydro in March 2004 as an independent listed company. It was formed by Norsk Hydro’s two previous divisions: Hydro Agri and Hydro Gas & Chemicals. Then, in 2007, the Finnish state sold its shares in Kemira Growhow Oy to Yara International, which subsequently redeemed the shares owned by others in the company.
Some see Yara as an interesting investment target because it plays a supportive role in solving international food and climate challenges. Yara focuses on improving agricultural productivity and developing sustainable solutions for food production and energy efficiency.
Yara is expanding its core business, for example, by promoting the hydrogen economy (note, brothers!) through clean ammonia, especially for the energy needs of shipping and food production, while focusing on a strategy that addresses food security and climate change challenges and creates new business opportunities.
As a leader in the industry, this company (at least in its rhetoric… well, perhaps otherwise too) emphasizes responsibility, integrates human rights, environmental issues, and diversity into its operations, and strives for sustainable performance.
The company aims for a strong ROIC return of over 10% through strict capital management and a clear dividend policy, while ensuring attractive returns for shareholders.
Yara would be an interesting case, but how do those Norwegian dividends work? Differences between Share Savings Account (OST) / Securities Account (AOT)?
I’m so lazy that I really can’t be bothered with any extra hassle, so I’d rather buy something else.
Yara’s Siilinjärvi mine is the EU’s only phosphate mine. Chinese BYD has, to my understanding, used phosphate in its LFP batteries (lithium iron phosphate). From this perspective, I have personally invested in that, even though some new battery chemistry could quickly displace it.
Via Nordnet’s investment insurance, you don’t need to claim money back separately from the Norwegian tax authority, so it’s advisable to invest in Norwegian assets through it.
The article is behind a paywall, but they have immediately raised fertilizer prices.
According to director Roland Westerberg, raw materials will not be coming through the Hortzu Strait.
The availability of Finnish fertilizers is secured, according to the article.
(Also behind a paywall)
Competitor Cemagro stopped selling fertilizers when a factory supplying Russian raw materials was hit by a drone. This included ammonium sulfate nitrate and urea.
Yara, however, has already soared to a 5-year high.
Yara has reported better than expected figures for the last three quarters and the negative trend in earnings expectations seems to be turning upwards now. This is confirmed by the fact that the negative share price trend has also turned upwards.
