Ammonia plant in red for Yara
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.