Fertiglobe’s full-year 2023 net profit stood at Dh505 million, down from Dh1.8 billion in 2022. The company’s revenues reached $2.41 billion, with an adjusted EBITDA of $1 billion and an adjusted net profit of $363 million.
Demand is expected to increase before the spring application season in the Northern Hemisphere, with solid demand in regions like Brazil and Australia, the company said in a statement. Factors such as low inventories in key importing regions, restrictions on Chinese exports, and disruptions in the Red Sea are anticipated to support prices in the coming months, with limited impact on Fertiglobe.
“We are pleased to have closed 2023 with robust performance, and in particular to have achieved a 5% year-on-year increase in our own-produced sales volumes, along with a 15% increase in Q4 2023 compared to Q4 2022,” said Ahmed El-Hoshy, CEO of Fertiglobe. “This is a testament to the efforts of our operational and commercial teams, who have further cemented our focus on operational excellence and capitalising on our strong commercial capabilities.
The company’s board has approved dividends of $200 million for H2 2023, subject to shareholder approval in April 2024, indicating a strategy of balancing dividends with investments in growth projects.
The sale of OCI’s 50% shareholding in Fertiglobe to ADNOC for $3.62 billion, making ADNOC the majority shareholder with 86.2% ownership, is expected to close in 2024, pending regulatory approvals. This transaction aligns with Fertiglobe’s growth plans, enabling it to leverage ADNOC’s resources for new opportunities in clean ammonia and blue hydrogen markets. The company aims to unlock potential in core products, accelerate growth, and maximise shareholder value.
Fertiglobe plans to generate at least $100 million in incremental annual EBITDA by 2025 through the Manufacturing Improvement Plan (MIP) and cost optimisation efforts. Progress has been made in reducing the carbon footprint, with initiatives such as shipping renewable ammonia and deploying carbon capture units.