Fertilizer-Maker Yara Warns of Nitrogen-Based Fertilizer Shortages Due to High Gas Prices

A field of winter wheat is pictured outside Bashtanka, Mykolaiv region, as Russia's attacks on Ukraine continue, Ukraine June 9, 2022.
A field of winter wheat is pictured outside Bashtanka, Mykolaiv region, as Russia's attacks on Ukraine continue, Ukraine June 9, 2022.
(REUTERS/Edgar Su/File Photo)

Norwegian fertilizer-maker Yara posted slightly higher than expected second-quarter profits on Tuesday and warned there could be shortages of nitrogen-based fertilizers amid high gas prices.

April-June earnings before interest, tax, depreciation and amortisation, excluding one-off items, rose to $1.48 billion from $775 million a year ago, while analysts in a company-provided poll had expected profits of $1.39 billion.

"There is a clear risk of nitrogen shortages and further price spikes if the gas situation in Europe deteriorates further", Yara CEO Svein Tore Holsether said in a statement.

Fertilizers require large amounts of energy to be produced. Manufacturers like Yara use gas to do so.

(Reporting by Gwladys Fouche)

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