Am­mo­nia plant in red for Yara

The West Australian - - WEST BUSINESS - Sean Smith

The Nor­we­gian-backed owner of WA’s liq­uid am­mo­nia plant on the Bur­rup Penin­sula has blamed de­pressed prices for a $140 mil­lion re­ver­sal which plunged the project into the red last year.

Av­er­age prices for am­mo­nia, a key in­gre­di­ent in fer­tilis­ers, are 25 per cent be­low 2014 lev­els, de­spite a $US31 a tonne pick-up last year.

Yara Pil­bara Fer­tilis­ers, owned by Norway’s Yara In­ter­na­tional, said its fall to a $58 mil­lion loss for 2017 from a $93.9 mil­lion profit the year ear­lier largely re­flected “gen­eral mar­ket con­di­tions”.

“Global pric­ing and pres­sures on oper­at­ing costs cre­ated a chal­leng­ing year for us in the mar­ket place,” the com­pany told WestBusi­ness.

The profit de­te­ri­o­ra­tion was in­flu­enced by an­other drop in the am­mo­nia plant’s rev­enue, to $176.8 mil­lion from $187.8 mil­lion, with oper­at­ing cash flow crash­ing from $74.8 mil­lion to neg­a­tive $2.5 mil­lion.

The project turns out up to 850,000 tonnes of liq­uid am­mo­nia a year.

Yara In­ter­na­tional’s am­mo­nium ni­trate plant on the Bur­rup Penin­sula.

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