An analysis describes Yara International’s shift from a Europe-focused, high-cost ammonia producer to a more diversified, lower-cost global operator.
The company’s acquisition of the Texas City ammonia plant is expected to materially reduce its exposure to volatile European natural gas prices.
The analysis says the acquisition and carbon-capture initiatives are not yet fully reflected in Yara’s share price, which trades at a discount to peers.
Yara’s second-quarter results showed its return on invested capital more than doubled to 14.3%. The analysis cites this as evidence of resilience and says the company could be re-rated as its cost structure improves.