Latest news with #AhmedElHoshy
Khaleej Times
21-05-2025
- Business
- Khaleej Times
Fertiglobe earnings to get a boost from Adnoc funding support
Fertiglobe, the world's largest seaborne exporter of urea and ammonia combined, expects funding support from Adnoc to boost the company's earnings per share, its CEO said. The company's interest bill will reduce by around $10 million via direct and indirect financing support by Adnoc, adding approximately six per cent to its 2024 earnings per share, driven by refinancing, debt repricing and the benefits of the credit rating upgrades the company received following Adnoc's majority stake acquisition. 'Combined, between the fixed and the interest cost savings, we expect an approximate 13-16 per cent after-tax earnings per share accretion by the end of 2025, in addition to incremental contributions from the announced strategic pillars,' Ahmed El-Hoshy, CEO, Fertiglobe, told Khaleej Times in an interview. A strong operational performance as well as favourable market conditions for urea and the strategic shipment deferrals from Q4 2024 to Q1 2025 drove Fertiglobe's performance for the first quarter of this year, capitalising on higher prices, as it targets earnings before interest, taxes, depreciation and amortisation (Ebitda) by 2030, El-Hoshy said. Fertiglobe had a very strong start to the year, with revenues growing 26 per cent and adjusted Ebitda up 45 per cent over the same period last year. Our adjusted attributable profits also increased significantly on a normalised basis to $73 million, up 306 per cent after adjusting for a one-off foreign currency revaluation benefit in Q1 of last year. 'Additionally, supported by the company's ongoing manufacturing improvement plan (MIP), our asset utilisation and energy efficiency levels reached record highs across most plants in Q1 2025, a key reason behind the increase of 7 per cent year-on-year in our own-produced sales volumes,' El-Hoshy said. Fertiglobe's 'Grow 2030 Strategy' aims to transform the company into a $1 billion+ Ebitda global integrated downstream nitrogen product champion by 2030 via four strategic pillars: operational excellence, customer proximity, nitrogen product expansion and disciplined low-carbon ammonia growth. 'While these pillars are expected to collectively add $340-420 million to Ebitda till 2030 (at unchanged prices), several of the initiatives behind those pillars will start to reflect on our earnings this year,' El-Hoshy said. Adnoc has provided its full support to integrate and optimise $15-21 million of fixed costs by the end of 2025, leading to a 7-10 per cent earnings-per-share accretion by the end of year. 'In addition, we continue to make progress on our MIP, with gains expected to also continue reflecting on our run rate volumes and earnings. In addition, our recent acquisition of Wengfu Australia, as part of our downstream integration strategy, is expected to be accretive starting this year,' El-Hoshy said. Fertiglobe has identified four strategic pillars, for growth. 'Pillar one is achieving operational excellence working towards top quartile performance via manufacturing and cost excellence which should unlock $165-175 million of incremental Ebitda, most of it to be achieved by the end of 2027. The second pillar is maximising netbacks and increasing customer proximity, with our Wengfu Australia acquisition being a case in point of our opportunistic and focused approach towards growth, whether organic or inorganic. Separately, we will be looking to expand our nitrogen product portfolio to capture more value and convert ammonia into higher value products, similar to an Automotive Grade Urea (AGU) agreement we signed with DF Group of Spain. And finally, the fourth pillar revolves around low-carbon ammonia and pursuing a disciplined value-led approach capitalising on our existing advantages and the synergies with our majority shareholder's ecosystem,' El-Hoshy said. The company recently acquired Wengfu Australia's distribution assets.'Wengfu is a leading fertiliser distributor with significant downstream presence in Australia. For us, Australia is a highly attractive market and one of our largest, offering high value and growth in the urea sector. The acquisition also accelerates our expansion across the Asia-Pacific region, which is a key growth market,' El-Hoshy said. Fertiglobe has been supplying urea to Wengfu for over five years. 'This acquisition secures our position in a strategic premium market and brings us closer to end customers. It aligns with our new strategy of selectively expanding downstream in our key markets. This acquisition can drive additional urea volume growth in Australia and will provide access to a broader customer base, unlock supply chain efficiencies, and support the introduction of enhanced-efficiency and sustainable fertilisers,' El-Hoshy said.
Zawya
15-05-2025
- Business
- Zawya
Fertiglobe's profits exceed $115mln in Q1-25; revenues hike 26%
Abu Dhabi: Fertiglobe achieved net profits of $115.30 million in the first quarter (Q1) of 2025, an annual drop from $154.40 million. Revenues hiked by 26% to $694.90 million as of 31 March 2025 from $551.90 million in Q1-24, according to the financial results. Basic and diluted earnings per share (EPS) hit $0.009 in Q1-25, versus $0.014 a year earlier. Ahmed El Hoshy, CEO of Fertiglobe, commented: "We delivered a 7% increase in our own-produced sales volumes vs. Q1-24, and 31% vs. Q4-24.' 'This was driven by the strategic shift of shipments from Q4 to capitalize on improving market conditions, and improved plant operating rates, reflecting successful execution on Phase 1 of the Manufacturing Improvement Plan (MIP) focused on enhancing energy and production efficiency,' El Hoshy added. He noted: 'With ADNOC's strategic support, Fertiglobe has entered the next phase of its growth under the 'Grow 2030 Strategy', targeting to become a $1 billion EBITDA` global integrated downstream nitrogen product champion by 2030 via four strategic pillars.' Last year, the net profit attributable to fell to $159.90 million from $348.90 million in 2023.
Arabian Business
13-05-2025
- Business
- Arabian Business
Abu Dhabi's Fertiglobe to acquire Wengfu Australia's distribution business
Abu Dhabi-based Fertiglobe has signed an asset sale and purchase agreement to acquire the distribution assets of Wengfu Australia, a leading fertiliser distribution business. Wengfu operates in South-East Australia from five ports with eight warehouses, distributing 700-800kt of fertilisers annually to over 200 customers. It has the capacity to scale up to 1.1 million tons per annum, making it a leading supplier in one of the world's fastest-growing agricultural markets. Boosting Fertiglobe's market presence The purchase price will be determined on the basis of net asset value, consisting of fully recoverable net working capital and liquid inventory, plus a premium of approximately US$8 million. The transaction is expected to be accretive to earnings per share. Fertiglobe currently supplies nearly 600kt of urea annually to Australia, with the potential to significantly grow supply volumes through the Wengfu platform to meet demand. The acquisition aligns with Fertiglobe's strategy to expand its presence in key strategic sectors, diversify its global footprint, and build resilience against seasonality. It provides access to a broader customer base, unlocks supply chain efficiencies, and supports the introduction of enhanced-efficiency and sustainable fertilisers. Fertiglobe will also be able to widen its distributed product portfolio to non-nitrogen fertilisers and expand fertiliser sourcing flexibility to supply the wider Asia-Pacific region. Ahmed El-Hoshy, Chief Executive Officer of Fertiglobe, commented: 'Acquiring Wengfu's assets marks a strategic step in our value-driven growth strategy and accelerates our commercial footprint in Australia – one of the world's fastest-growing agricultural regions. 'It also provides us with a strong distribution platform across the Asia-Pacific region, strengthens access to our customers, and enhances our ability to competitively source and deliver our products and services. Having known Wengfu's team for several years, we have strong confidence in their ability to grow the business from here.' The acquisition will be financed through pre-arranged trade facilities, with no impact on Fertiglobe's dividend distribution capability and minimal impact on leverage. Fertiglobe is the world's largest seaborne exporter of urea and net ammonia combined, the largest nitrogen fertiliser producer in the Middle East and North Africa region, and ADNOC's low-carbon ammonia platform. Its production capacity comprises of 6.6 million tons of urea and merchant ammonia, produced at four subsidiaries in the UAE, Egypt and Algeria. Wengfu Australia is part of China's Guizhou Phosphate & Chemical Group (GPC), which was created in 2019 through a merger of Wengfu Group and Guizhou Kailin Fertilizer Group to create the world's third-largest manufacturer of phosphate fertiliser and phosphate chemical products.
Zawya
11-02-2025
- Business
- Zawya
Fertiglobe's profits drop in 2024 due to gas shortages in Algeria, Egypt
Abu Dhabi: The net profit attributable to shareholders of Fertiglobe recorded net income amounting to $159.90 million in 2024, marking a year-on-year (YoY) plunge from $348.90 million. The revenues fell by 7% to $2 billion last year from $2.41 billion in 2023, according to the financial results. Earnings per share attributable to the equityholders fell by 54% YoY to $0.01 from $0.04. Total assets dropped by 5% to $4.41 billion as of 31 December 2024, compared to $4.62 billion in 2023. Last year's financial performance was impacted by gas and power shortages in Algeria and Egypt, shipment deferrals to 2025, and the provisioning for potential changes in the Algerian gas pricing set-up. In the fourth quarter (Q4) of 2024, Fertiglobe posted revenues of $466 million, adjusted EBITDA of $158 million, and adjusted net profit of $42 million. The quarterly performance was impacted by planned turnarounds in Algeria and the strategic deferral of several shipments to early 2025 at higher prices. Ahmed El Hoshy, CEO of Fertiglobe, said: 'With ADNOC transferring its stakes in three low-carbon ammonia projects to Fertiglobe, our consolidated net low-carbon ammonia capacity is set to reach 2.4 mtpa, subject to project FIDs.'. Dividends for H2-2 El-Hoshy announced: 'In line with our disciplined capital allocation policy, Fertiglobe's board of directors proposed dividends of $125 million for H2 2024 (equivalent to 5.50 fils per share). 'This brings total dividends since the IPO [initial public offering] to $2.50 billion, implying one of the highest total return rates in the industry,' he added.
