Abu Dhabi-based Fertiglobe, a strategic partnership between ADNOC and OCI Global, has started 2023 on a strong note, posting Q1 revenues of $694 million, adjusted EBITDA of $297 million, adjusted net profit of $135 million, and free cash flow of $271 million. The company achieved a 9% increase in its own-produced sales volumes during the quarter, driven by a disciplined commercial strategy and centralised distribution capabilities aimed at demand centres with attractive netbacks. Fertiglobe’s order book is strong for the coming months, and market conditions have begun to tighten in Q2, resulting in improved prices in some regions.
In line with its commitment to creating and returning shareholder value, Fertiglobe has guided for at least $250 million in dividends for H1 2023, equivalent to at least AED11 fils per share, payable in October 2023. The exact amount will be disclosed with the Q2 2023 financial results in August 2023.
Fertiglobe CEO Ahmed El-Hoshy stated, “We are pleased to announce our Q1 earnings for 2023, with the nitrogen outlook remaining favourable in the medium to longer term. New supply that was commissioned in 2022 has been absorbed by the market, and limited major greenfield supply additions are expected in the next four years. Meanwhile, agricultural demand is buoyed by attractive farmer economics, incentivising nitrogen fertiliser application to replenish decade-low grain stocks.”
In addition to creating and returning shareholder value, Fertiglobe is committed to its sustainability agenda and is making significant progress towards a more sustainable production footprint. The company is focused on reducing its carbon footprint and decarbonising other industries in its value chain, including power and transport.
CEO Ahmed El-Hoshy shared that Fertiglobe is progressing several initiatives to support free cash generation, including a manufacturing improvement plan and a cost structure optimisation initiative. These initiatives are expected to deliver operational and EBITDA efficiencies over the next 2-3 years. Furthermore, Fertiglobe recently announced the production of on-spec green ammonia at its facilities in Egypt, with plans to target a Final Investment Decision on the full-scale 100MW electrolyzer plant this year. The plant aims to produce up to 15,000 tons of green hydrogen as feedstock for producing up to 90,000 tons of green ammonia per year in Fertiglobe’s existing ammonia plants.
Fertiglobe’s commitment to sustainability is also evident in its strong order book for the coming months. With attractive farmer economics, agricultural demand for nitrogen fertiliser application is buoyed, incentivising farmers to replenish decade-low grain stocks. The nitrogen outlook remains favourable in the medium to longer term, with new supply commissioned in 2022 absorbed by the market and limited major greenfield supply additions expected in the next four years.
Fertiglobe’s commitment to creating value for its shareholders, reducing its carbon footprint, and contributing to a more sustainable future is commendable. With its strong financial performance, initiatives to support free cash generation, and production of green ammonia, the company is well-positioned to continue its growth trajectory and contribute to a more sustainable future.
El-Hoshy also stated that the company is working on several initiatives to further support free cash generation, including a manufacturing improvement plan and a cost structure optimisation initiative. Fertiglobe has also announced the production of on-spec green ammonia at its facilities in Egypt, with plans to target a Final Investment Decision on the full-scale 100MW electrolyzer plant this year. The plant aims to produce up to 15,000 tons of green hydrogen as feedstock for producing up to 90,000 tons of green ammonia per year in Fertiglobe’s existing ammonia plants.
Fertiglobe is committed to delivering on its sustainability agenda and making meaningful progress towards a more sustainable production footprint while playing a role in decarbonising other industries in its value chain, including power and transport.
