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YARIY and NYK Close Deal for Ammonia-Fueled Medium Gas Carrier

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Yara International ASA's (YARIY - Free Report) unit Yara Clean Ammonia, the world's biggest ammonia distributor, has inked a time-charter contract with Nippon Yusen Kabushiki Kaisha ("NYK") for an ammonia-fueled medium gas carrier (AFMGC) that will be delivered in November 2026. 

The agreement with NYK allows the company to not only comply with future rules governing CO2 emissions from sea-going vessels but also to ensure that its clients obtain carbon-intensity-compliant clean ammonia across its supply chain.

Yara Clean Ammonia and NYK have been studying the practical application of an ammonia-fueled ammonia gas carrier since 2021, and the companies have now completed the world's first time-charter contract for an AFMGC, the most common type of vessel for international ammonia transportation. 

The use of an AFMGC is expected to significantly reduce GHG emissions from marine transportation while also developing an ammonia supply chain by providing a more environmentally friendly mode of ammonia transportation as demand for ammonia in the power sector, marine fuel and other applications grows.

Shares of YARIY have lost 20.1% over the past year compared with a 3.2% rise of its industry.

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YARIY’s Rank & Key Picks

YARIY currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the basic materials space include Carpenter Technology Corporation (CRS - Free Report) , Hecla Mining Company (HL - Free Report) and New Gold Inc. (NGD - Free Report) .

Carpenter Technology currently carries a Zacks Rank #2 (Buy). CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 14.1%. The company's shares have soared 222.3% in the past year. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Hecla Mining, which currently carries a Zacks Rank #1, beat the consensus estimate in three of the trailing four quarters while missing once. In this time frame, it has delivered an earnings surprise of roughly 50%, on average. HL’s shares have rallied 60.9% over the past year. 

New Gold, which currently carries a Zacks Rank #1, beat the consensus estimate in three of the trailing four quarters while missing once. In this time frame, it has delivered an earnings surprise of roughly 37.5%, on average. NGD’s shares have rallied 132% over the past year. 

 

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