Fertiglobe shareholders approve 2024 dividends of $275 million and share buyback
Fertiglobe shareholders on Tuesday night approved an H2 2024 cash dividend of $125 million (5.5 fils/share), bringing total FY 2024 dividends to $275 million.
Cumulative distributions since Fertiglobe's 2021 IPO now stands at $2.5 billion, representing one of the highest dividend yields and total return metrics in the industry and on the Abu Dhabi Securities Exchange (ADX).
Shareholders also approved the company's proposal to repurchase up to 2.5 per cent of its outstanding shares. 'The proposed buyback underscores Fertiglobe's strong confidence in its value creation potential and market positioning. The Company will conduct the share buyback through open-market transactions in accordance with ADX regulations, with the quantity of repurchased shares dependent on market conditions and other factors,' a statement said.
Dr. Sultan Ahmed Al Jaber, Chairman of Fertiglobe, said: '2024 marked a year of important milestones for Fertiglobe as it continued to strengthen its performance and fully integrate into the Adnoc ecosystem. As we look ahead, Fertiglobe will play a key role in supporting Adnoc's global growth strategy, unlocking new market opportunities, and accelerating its journey to becoming a champion of sustainable industrial solutions.'
Ahmed El-Hoshy, chief executive officer of Fertiglobe, said: '2024 was a transformational year, reinforcing our position as a global leader in nitrogen-based solutions and low-carbon ammonia. Fertiglobe is uniquely positioned to drive sustainable growth and innovation, with a roadmap focused on advancing sustainability, scaling new technologies, and maximising shareholder value. With Adnoc's continued support, our highly skilled team, and a steadfast commitment to operational excellence, we are well-equipped to navigate market dynamics, seize opportunities, and lead the transformation of our industry.'
In 2024, Adnoc's investment and majority shareholding emphasised the strategic significance of Fertiglobe within Adnoc's low-carbon strategy and demonstrated a commitment to fostering sustainable growth in the global nitrogen and low-carbon ammonia sectors.
In 2024, Fertiglobe successfully delivered its $50 million recurring annual cost saving initiative by introducing enhancements to its operating model, improvements in logistical capabilities, and optimising operational cost and spend to maximise efficiencies. In addition, Fertiglobe's Manufacturing Improvement Plan (MIP) is on course (75 per cent complete) to deliver operational and cost efficiencies, leading to incremental annual earnings before interest, taxes, depreciation and amortisation (Ebitda) of at least $100 million by the end of 2025, compared to 2023 levels.
Despite operational disruptions in 2024, particularly during the summer period due to external factors in Egypt and Algeria, Fertiglobe successfully limited its production decline to only three per cent year on year. After adjusting for external factors, and the strategic decision to defer shipments to 2025 to realise improved pricing, Fertiglobe's own-produced sales volumes in FY 2024 would have been up three per cent year on year. Supported by robust free cash generation and a healthy balance sheet, Fertiglobe said it remains committed to balancing dividend payments with selective growth spending on value accretive projects. The company's investment grade positioning is further reinforced by S&P and Fitch's recent credit rating upgrade following the completion of the ownership transfer to Adnoc.
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