* Q1 adjusted EBITDA 3.83 bln NOK vs forecast 3.22 bln
* Shares rise 6 percent
(Adds detail, analyst, stock)
OSLO, April 30 Fertiliser maker Yara
reported better-than-expected first-quarter earnings on
Wednesday and said its outlook had improved on better profit
margins for the global farming sector, sending its shares more
than 6 percent higher.
The world's biggest nitrogen-based fertiliser maker said
both current and forward food prices had increased, fertiliser
application was strong and global grain stocks were at their
second lowest level since 2008, helping its business.
The Norwegian company added its energy costs, the biggest
factor impacting its margins, were expected to fall sharply in
both the second and third quarter, helping its figures.
Still, it warned that global prices of urea - a key
fertiliser ingredient - declined from mid-February on strong
supply growth in China, a big risk factor for the industry.
Investors cheered the company's figures and at 0716 GMT, the
stock was up 6 percent, well ahead of the broader Norwegian
market's 0.4 percent rise.
"Following the report, our estimates will be lifted, which
should also lead to a higher target price," Norne Securities
said in a note to clients. "Margins were very strong and this
led to EBITDA and EPS significantly above projections. Adjusted
figures showed an even stronger deviation on the positive side."
Yara said its first-quarter earnings before interest, taxes,
depreciation and amortisation (EBITDA) excluding one-off items
fell 8 percent to 3.83 billion Norwegian crowns ($640 million),
beating expectations for 3.22 billion crowns.
The firm also said China and Ukraine continued to keep the
market uncertain. In China, lower coal prices were a risk for
global commodity nitrogen prices, while the impact of sharply
higher gas prices in Ukraine remained unclear.
(Reporting by Balazs Koranyi; Editing by Gwladys Fouche and