Global fertiliser giant Yara has reported that revenue and other income stood at $15.5bn (£12.27bn) in 2023, down 35% from over $24bn (£19bn) in the 2022.

The fertiliser manufacturer's 2023 Integrated Report published last week shows that net income crashed to $54m (£42.75m), down from over $2.7bn (£2.14bn) in 2022.

This has been put down to lower margins and higher loss driven by a $168m (£133m) impairment of the Tertre plant in Belgium.

Last year, earnings before interest, tax, depreciation, amortisation (EBITDA), excluding special items, were $1.7bn (£1.35bn), compared with a record high of almost $4.9bn (£3.88bn) in 2022.

The fall in EBITDA reflected smaller margins and selling prices which took away any gain from lower production costs.

As a result the basic earnings per share (EPS) fell from $10.90 (£8.63) in 2022 to $0.19 (15p) last year.

Yara reported a 5% drop in deliveries compared to 2022 which was explained by a drop in third-party products availability following sanctions on Russia. Europe’s deliveries increased by 3% compared with 2022 whilst American deliveries fell 8% in the same period.

Yara said that deliveries in the first half of the season of 2023/2024 are lagging both in the EU and in the US compared to normal, indicating a potential volume catch-up for the first half of 2024. Wet weather in parts of Europe is being blamed for further delaying fertiliser application.

Ammonia production remained similar at 6.3mt compared to 6.5mt in 2022. Meanwhile production of finished fertiliser and industrial products, excluding bulk blends increased slightly to over 18.4mt.

The company’s Ireland based subsidiary, Yara Insurance DAC, reported revenues of €59m (£46.70m) and accumulated earnings of $100m (£79m) in 2023.

The company stated that the Russian invasion of Ukraine will ‘shape the global landscape for many years to come’, with concerns about challenging market dynamics and production volatility, especially in Europe.

They also warned that the ongoing situation in the Middle East will impact global supply chains as merchant vessels are attacked in the Red Sea and the Arab Gulf.

The Scottish Farmer: Svein Tore Holsether, president and chief executive of YaraSvein Tore Holsether, president and chief executive of Yara

Svein Tore Holsether, president and chief executive of Yara, described 2023 as ‘characterised by high volatility and operational challenges, but also by efforts to drive the energy transition and curb emissions’.

He said: “The results in 2023 were significantly down from the record results in 2022, as lower selling prices more than offset lower production costs leading to lower margins.

“Despite the challenging operating environment, we delivered a strong free cash flow of $1bn showcasing the robustness of our business model and our commitment to strict capital allocation,” he said.”

“Value chain disruptions have become the new normal, and in this situation we have demonstrated to the fullest how we can utilise our global presence and reach, within both production and deliveries, to create value also in times of turmoil,” Holsether added.

The report also stated that green house gas emissions was 3t CO2e /t N in 2023.