The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Alexander Jones - BofA Securities, Research Division - Analyst
: Two questions, if I may. The first one, I think, in your prior quarterly report, you mentioned that gas prices have gone up, but nitrogen prices have
gone up sufficiently that your margins were offsetting the gas price. Are you able to give us sort of similar color on how that trade-off is playing
out for Q4 so far, admittedly, given pretty high volatility you mentioned on both gas and finished product prices.
And then the second question around some of your premium products. You've talked in the past about a sort of value-based pricing approach
here, more set on base the yield the farmer is getting rather than necessarily the input cost. How is it going with those products in terms of passing
through high gas prices to farmers?
Question: Truls Kolsrud Engene - SEB, Research Division - Analyst
: Yes. Good afternoon. Couple of questions partly been answered or explained, so more of a follow-up. First, on the situation with the curtailed
capacity in ammonia in Europe. Are you able to -- if this kind of continues now throughout Q4, will you then be able to replace that ammonia
volume with sourcing from your plants or buying ammonia outside of Europe?
Question: Truls Kolsrud Engene - SEB, Research Division - Analyst
: Understood. And then on kind of your -- with the current and curtailment of the ammonia production in Europe. Is that having an immediate effect
on your gas purchases in Europe? So now with 40% of the capacity being curtailed also your gas purchases in Europe is currently down 40%, or
how should we think about that?
Question: Truls Kolsrud Engene - SEB, Research Division - Analyst
: Yes. Just I mean, related to your kind of guidance or outlook on gas cost as that is based on kind of stable or normal purchase volume. So I guess,
with the current situation then obviously, the negative effect from that will be lower?
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OCTOBER 20, 2021 / 11:00AM, YAR.OL - Q3 2021 Yara International ASA Earnings Call
Question: Adrien Tamagno - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Is this current situation with natural gas pricing spiking made you think again about your policy around hedging and forward purchasing of natural
gas?
Question: Adrien Tamagno - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Okay. And in terms of your European capacity, the fact that you have to shutdown, does this trigger any impairment testing going forward?
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