Yara’s business model is highly dependent on energy prices, especially gas prices, as the company basically grabs gas from the air and puts it in the soil for vegetables. The key chemical reaction is extremely energy-intensive. The Q1 figures gave some first glimpse of the potential impact on 2020 as a whole, despite the negative top-line development. But profitability came in stronger than expected. Consensus was beaten on all levels.
23 Apr 2020
Turmoil could help margins
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Turmoil could help margins
Yara’s business model is highly dependent on energy prices, especially gas prices, as the company basically grabs gas from the air and puts it in the soil for vegetables. The key chemical reaction is extremely energy-intensive. The Q1 figures gave some first glimpse of the potential impact on 2020 as a whole, despite the negative top-line development. But profitability came in stronger than expected. Consensus was beaten on all levels.