Fertiliser prices more than double those of last year, coupled with strong performance from overseas assets, have led to significantly higher returns in the first second quarter of the financial year, for the Norwegian-based manufacturer, Yara.

In its most recent set of results, published this week, the company said the performance on prices and assets “more than offset” higher European feedstock costs and lower deliveries.

Yara’s Q2 operating income was a massive $1.22bn, compared to $477m a year earlier. Earning before interest, taxes, depreciation and amortisation (EBITDA) was $1.48bn, compared to $775m in the same period last year. Net income attributable to shareholders was $664m ($2.61 per share), compared with $539m ($2.10 per share) in Q2 of 2021.

Svein Tore Holsether, president and chief executive officer of Yara, said: “Our business model remains resilient, and I would like to thank the whole Yara organisation for another strong effort in a volatile market.

“However, there is a clear risk of nitrogen shortages and further price spikes if the gas situation in Europe deteriorates further."

He added that seasonally lower northern hemisphere demand, combined with the recent European gas price surge is leading to significant "curtailments” in Europe, including for Yara.

The fertiliser giant has currently curtailed several of its production plants, currently to an annual capacity of 1.3m tonnes of ammonia and 1.7m tonnes of finished fertiliser.

The business has also published its first ‘Green Financing Framework’ which it says “underlines its commitment to sustainability as an integral part of its strategy”.

“Eligible green projects are expected to create environmental benefits by decarbonising the food chain, including fertiliser production and application, and by limiting the need the expand farmland,” the company explained.

A statement from the business added: “Yara’s resilient business model continues to generate robust returns, leading to strong dividend capacity going forward in line with Yara’s capital allocation policy.”