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
: Great. I've got 2 questions, if I can, please. The first on NPK premiums, Clearly, they got significantly compressed this quarter by rising nitrogen and
potash prices. Could you talk about sort of the path to recovering those margins and whether you would expect to get back to sort of the $80 a
tonne that we saw in the first 9 months of 2021 in the next few months or whether it could take a bit longer and whether there's a volume trade-off
as well. That's the first one. The second question, just on power prices. Clearly, natural gas prices have been very visible but electricity prices have
also gone up significantly, and you don't necessarily disclose the sensitivity for that. So could you help us with how much that's contracted for you
Question: Truls Kolsrud Engene - SEB, Research Division - Analyst
: Yes, one. I think Thor has touched upon it, but just to be clear on these realized prices also on market there, we saw them being on a roughly [130]
below the 1-month lag and much closer to the 2-month lag market reference price. How should we think about this for Q1? Will it be then -- I think
you mentioned shorter timeline again, that it should be more like a normal situation, so closer to the 1-month lag for Q1?
Question: Truls Kolsrud Engene - SEB, Research Division - Analyst
: Right. And just a follow-up on the demand part. You mentioned the expectations and how this is developed for nitrogen Europe. We saw that
deliveries in Africa and Asia were down 27% year-on-year in Q4. Do you see more pushback from customers outside of Europe? And Americas
might be more price sensitive on the current still high prices there?
Question: Adrien Tamagno - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Just curious about your ammonia production target for '23. Is it going to be all achievable with the bottlenecking of fuel capacity, or you would
need to achieve this target externally or this may have to be revised? And secondly, can you elaborate on the potash impairment in Ethiopia because
that's still surprising given the commodity price trajectory?
Question: Adrien Tamagno - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
: Yes, it is just a bit more clarification about the impairments on the Dallol mine, which seems a bit surprising given the potash commodity price
trajectory.
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