VINACHEM

SINGAPORE (ICIS)--Yara’s fourth quarter 2010 net income rose 9.9% year on year to Norwegian kroner (NKr) 1.56bn (€198m, $267m), on the back of stronger demand for fertilizers and higher prices, the Norway-based fertilizer major said on Tuesday.

Sales jumped 30% year on year to NKr17.4 bn in the fourth quarter, as fertilizer deliveries rose 3% on the back of stronger sales of nitrogen phosphorus potassium (NPK) and urea, the company said in a statement.

"Prices have increased sharply following the tightening of global agricultural markets," said Jorgen Ole Haslestad, president and CEO of Yara.

Yara's fertilizer production ran at full capacity during the December quarter, the company added.

Overall, the firm’s net profit for the full year of 2010 more than doubled to NKr8.73bn, as compared to NKr3.78bn in 2009.

Total revenue in 2010, meanwhile, rose 5.1% year on year to NKr64.0bn.

“The significant swing from 2009 to 2010 underlines the short-term volatility in our business, but also shows that deliveries have rebound­ed quickly in the agricultural business as demand continued to grow robustly even through global economic slow-downs,” the Yara CEO said.

“Fertilizer demand is strong with agricultural commodity prices at historical high levels, and fertilizer capacity outside China is running at full capacity," he added.