Latest news with #Fertiglobe
See - Sada Elbalad
a day ago
- Business
- See - Sada Elbalad
Scatec's Egypt Green Hydrogen Project signed 20-year offtake agreement with Fertiglobe, based on H2Global award
SeeNews Scatec ASA's Egypt Green Hydrogen project, in partnership with Fertiglobe, Orascom Construction, The Sovereign Fund of Egypt and the Egyptian Electricity Transmission Company, reaches a key milestone, after Fertiglobe secured a green ammonia offtake agreement with Hintco in Germany, through the first ever H2Global auction. Based on the award, Fertiglobe and Egypt Green Hydrogen have entered into a 20-year ammonia offtake agreement. The agreement was signed at the Egypt-EU Investment Conference in Egypt on 29 June 2024. 'The H2Global award represents a key milestone for the Egypt Green Hydrogen project in Ain Sokhna, Egypt. This demonstrates the competitiveness of green hydrogen and ammonia production in Egypt, driven by its abundant renewable energy resources and strategic geographical location. We are grateful for the Egyptian government´s leading role in supporting this pioneering project and we look forward to continuing to work with the relevant stakeholders to establish Egypt as a regional green hydrogen hub. With Fertiglobe securing an offtake agreement for the ammonia, Egypt Green Hydrogen will accelerate the project's development and advance it towards financial close,' says Scatec CEO Terje Pilskog. In 2021, Scatec and partners agreed to develop, build, own and operate a 100 MW electrolyser facility to produce renewable hydrogen to be used as feedstock for the production of renewable ammonia at Fertiglobe's existing ammonia plant in Ain Sokhna, Egypt. The project will be powered by about 270 MW of solar and wind power capacity and deliver approximately 13,000 tonnes of renewable hydrogen and up to 74,000 tonnes of renewable ammonia annually. Scatec is the lead developer and majority sponsor of Egypt Green Hydrogen with an ownership share of 52% and will provide EPC services in collaboration with Orascom Construction. Scatec will further provide O&M and Asset Management services for the project alongside key technology providers and project partners. Next important milestones for the project are to select the electrolyser supplier and complete the project financing process with the European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Germany's development finance institution and KfW subsidiary DEG, British International Investment (BII), and US International Development Finance Corporation (DFC), that are providing competitive financing to support the first green hydrogen and ammonia project in Egypt. The partners expect to reach financial close in the first half of 2025. Ahmed El-Hoshy, Chief Executive Officer of Fertiglobe, said: 'This award marks a significant milestone for Fertiglobe in advancing sustainable ammonia production and a further critical step towards FID of Egypt Green Hydrogen, expected in H1 2025. Our selection as the winning bidder in H2Global's pilot auction underscores our leadership in supplying low-carbon products and our commitment to shaping a more sustainable future, and I appreciate the work of our incredible team to make this award possible. We are leveraging this vital program which makes our investment in sustainable ammonia economically viable, supporting critical decarbonization technology, while maintaining our disciplined growth strategy.' Gelsomina Vigliotti, Vice President of the European Investment Bank, said: 'Green hydrogen has a key role to play in the energy transition and in providing carbon-neutral solutions for industry. The first offtake agreement for hydrogen produced in Egypt, agreed at the Egypt-EU Investment Conference, represents a key step for future large-scale investment in the sector. The European Investment Bank looks forward to strengthening our cooperation with Scatec, Egyptian and international partners to mobilise investment for large-scale renewable hydrogen production in Egypt.' Nandita Parshad, Managing Director of the EBRD's Sustainable Infrastructure Group, said: 'The signing of the offtake agreement is a key milestone for the Egypt Green Hydrogen project with our long standing clients Scatec and Orascom Construction, as well as the Sovereign Fund of Egypt and Fertiglobe. The EBRD is proud to support this pioneering project which will produce 13,000 tons of renewable hydrogen annually and demonstrate the commercial viability of renewable Hydrogen in Egypt.' Monika Beck, Managing Director at DEG, commented: 'It is part of DEG's mission as an impact and climate financier to promote green hydrogen as a driver of green transformation. We are delighted to contribute to mobilizing investment in this milestone project in Egypt together with our esteemed client Scatec and our development finance partner institutions. We are convinced that it is essential to join forces to drive forward the green transformation, and the private sector plays a key role in this.' Iain Macaulay, Director and Head of Project Finance in Africa at BII, said: 'Egypt has the potential to be a global leader in renewable energy generation and green hydrogen production. I am delighted that BII has been able to provide project finance to back this landmark project, that will support a green and sustainable future for the country and showcase the importance of new technologies in supporting a just transition for the whole African continent.' The project is located in Egypt's Suez Canal Economic Zone (SCZONE), which seeks to become a major hub for green hydrogen industries. Waleid Gamal Eldien, Chairman of SCZONE, said: 'The Egypt-EU Investment Conference 2024, marked a vital milestone on Egypt's pathway to become a global green ammonia hub, as we celebrated the signing of a flagship offtake agreement between Fertiglobe and Egypt Green Hydrogen, the first green hydrogen plant in Africa, located at the SCZONE. As first agreement under H2Global auction, the offtake not only demonstrates the EU support to the emerging green hydrogen industry and the realization of Egypt's potential, but additionally emphasizes Egypt's determination to reach its vision, and showcase its comparative advantage stemming from its abundant renewables resources, industrial land, and its unique geographic location with ease of access to the world. The agreement is a testimony of Egypt's leadership and support in mobilizing its resources to attract foreign direct investments in green projects through the facilitation provided by its stakeholders.' The H2Global Foundation was established in 2021 to accelerate the emergence of markets for clean hydrogen and other zero-and low-emission technologies worldwide. It does so through market-based instruments, such as the H2Global mechanism, implemented by its subsidiary Hintco. 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Zawya
23-05-2025
- Business
- Zawya
Fertiglobe eyes future growth with diverse project portfolio across UAE, globally
ABU DHABI - Fertiglobe, an ADNOC subsidiary based in the UAE, is currently evaluating several strategic projects before making final investment decisions. These include a collaborative project with Exxon in the United States and additional prospective ventures in Abu Dhabi. Fertiglobe CEO Ahmad Al-Hoshy informed the Emirates News Agency (WAM) during the 'Make it in the Emirates' that the company is advancing its project in Ruwais Industrial City, Abu Dhabi, to produce one million tonnes of low-carbon ammonia. Fertiglobe's current annual production of ammonia and urea stands at 6.6 million tonnes, with plans to increase this to 7.6 million tonnes by 2027 upon the new project's completion and operational launch. Al-Hoshy also stated that Fertiglobe anticipates a final investment decision in 2025 for a renewable ammonia project in Egypt. In the meantime, Al-Hoshy noted the company's recent acquisition of assets in Australia, which, he said, will facilitate product distribution in key markets. He added, "We continue to monitor global markets in search of new opportunities that allow us to create added value and expand our footprint." Discussing the company's recent financial performance, Al-Hoshy highlighted a robust first quarter in 2025, with EBITDA reaching $261 million, a 45% YoY increase, and free cash flow at $213 million, marking a 37% YoY growth.
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.
Mid East Info
14-05-2025
- Business
- Mid East Info
Fertiglobe Reports Q1 2025 Results and Announces ‘Grow 2030 Strategy', Targeting EBITDA of $1+ Billion by 2030
Q1 2025 Performance Highlights Q1 2025 revenues of $695 million (+26% Y-o-Y and +49% Q-o-Q), adjusted EBITDA of $261 million (+45% Y-o-Y and +65% Q-o-Q) and adjusted profit attributable to shareholders of $73 million (-24% Y-o-Y2 and +74% Q-o-Q). Strong growth driven by higher sales volumes supported by operational improvements and strategic shipment deferrals from Q4 2024 and higher urea prices. Adjusted for turnarounds, asset utilization and energy efficiency reached record highs across most plants in Q1 2025 driven by the ongoing Phase 1 of the Manufacturing Improvement Plan (MIP) which is now 80% complete. Strategy Update & Announcements: 'Grow 2030 Strategy' aims to transform Fertiglobe into a $1bn+ EBITDA1 global integrated downstream product champion, well placed for the energy transition, via four strategic pillars: Operational excellence (+$165 – 175 million by 2030) Customer proximity (+$30 – 45 million by 2030) Nitrogen product expansion (+$75 – 100 million by 2030) Disciplined low-carbon ammonia growth (+$70 – 100 million by 2030) Fertiglobe's optimization initiatives enhanced by ADNOC support, demonstrated today: ADNOC's full support to achieve $15-21 million of run rate fixed cost savings via integration and other optimization initiatives by year end 2025, as part of Fertiglobe's new $35 million cost reduction target. $6.7 million run rate interest savings through the refinancing of $300 million loan with ADNOC in-house bank in March and recent support in repricing $1.1 billion term loans in May with existing lenders. Fertiglobe successfully completes Automotive Grade Urea (AGU) production trials in Egypt and is creating a full Diesel Exhaust Fluid (DEF / AdBlue) value chain into Spain through an AGU supply agreement with DF Group. Fertiglobe reaffirms capital allocation strategy, distributing substantially all cash after providing for growth opportunities and maintaining investment grade credit rating. Abu Dhabi, UAE – May, 2025: Fertiglobe (the 'Company') (ADX: FERTIGLB), the world's largest seaborne exporter of urea and ammonia combined, the largest nitrogen fertilizer producer in the Middle East and North Africa region, and ADNOC's low-carbon ammonia platform, today announces its financial results for the three-month period ended 31 March 2025 ('Q1 2025') and unveils its strategy to accelerate EBITDA growth, aiming to surpass $1bn by 2030. Today, the Company is hosting a Capital Markets Day to provide an update to the market for its next growth phase and present targeted initiatives to strengthen its long-term resilience and competitiveness. Fertiglobe reported revenues of $695 million in Q1 2025, reflecting a 26% increase vs. Q1 2024, and a 49% increase vs. Q4 2024. Adjusted EBITDA for the period totaled $261 million, up 45% and 65% on a Y-o-Y and Q-o-Q basis, respectively. Ahmed El-Hoshy, CEO of Fertiglobe, commented: 'We are pleased to announce a strong set of Q1 2025 results, driven by robust operational performance and supportive market conditions. I would like to thank the team for an excellent safety record in Q1 2025, achieving 10 million safe man-hours and 14 months without any reportable events. This is a major milestone, and we are committed to sustaining and enhancing this performance as we move towards a zero-injury environment. 1 At 2024 prices, compared to $629 million reported EBITDA in 2024. 2 Q1 2024 included a one-off $79 million FX revaluation gain in Egypt; excluding this, net income would have been $18 million . Operationally, we delivered a 7% increase in our own-produced sales volumes vs. Q1 2024, and 31% vs. Q4 2024. 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. With ADNOC's strategic support, Fertiglobe has entered the next phase of its growth under the 'Grow 2030 Strategy', targeting to become a $1bn+ EBITDA global integrated downstream nitrogen product champion by 2030 via four strategic pillars. This strategy aligns with the global imperative of food security and ensures we are well positioned to capture upside from the energy transition. Our refreshed strategy presents a clear vision to achieving sustainable operational excellence and cost leadership. With Phase 1 of the cost optimization program completed, and Phase 1 of the Manufacturing Improvement Plan ('MIP') 80% underway, Fertiglobe today commits to new value enhancement initiatives. These include Phase 2 of the cost optimization program, targeting $35 million in annual run rate savings by 2027-end, and Phase 2 of the MIP, aiming for $80 million in additional EBITDA within the same timeframe. Together, value enhancement initiatives underway are expected to contribute $165-175 million to EBITDA on a run rate basis by the end of 20273. We are also enhancing our downstream presence in high-netback markets, with expansion efforts expected to contribute an incremental EBITDA uplift of $30-45 million by 2030. Our recent acquisition of Wengfu's distribution assets in Australia supports this refreshed approach, improving market presence and price realizations in core markets. Additionally, we are advancing our sustainable, higher-margin product portfolio, including Automotive Grade Urea ('AGU'), Diesel Exhaust Fluid ('DEF') and urea with inhibitors, projected to add $75-100 million in annual EBITDA by 2030. We are excited to have successfully completed trials for the production of AGU in Egypt with thyssenkrupp Uhde Fertilizer Technology (tk UFT) with plans to have exclusive rights for this new technology. This will enable us to create a fully integrated DEF value chain by entering into an agreement with DF Group for the supply of AGU. These partnerships reaffirm our commitment to expanding into sustainable, higher value products, and we expect further distribution opportunities in other geographies. We are uniquely positioned to play a critical role in meeting global demand for low-carbon ammonia, underpinned by our unparalleled production platform, established market position and the extensive support of ADNOC's project pipeline and global reach. We are prioritizing disciplined capital allocation and demand-led value accretive investments into low-carbon ammonia, which are expected to contribute $70-100 million to EBITDA by 2030. Central to this disciplined approach is the continued full support of our majority shareholder, ADNOC, as demonstrated by the integration of $15-21 million of run rate fixed cost savings and other optimization initiatives by year end 2025, as part of Fertiglobe's new $35 million cost reduction target, which includes reducing our financing costs by $10 million4 and its incubation of new projects in the pipeline, with more synergies to come across customer networks, logistics, technology and infrastructure. Fertiglobe is strongly positioned for its next phase of growth and value creation, and I am confident in our ability to deliver on this strategy.' 'Grow 2030 Strategy': Roadmap to achieving over $1+ billion EBITDA by 2030 Fertiglobe's refreshed growth strategy aims to position the Company as an integrated global nitrogen champion through four strategic pillars: Operational excellence: Fertiglobe intends to achieve first quartile asset reliability and efficiency across its young asset base, optimize the cost structures of its manufacturing and corporate functions, and fully leverage operational and ecosystem synergies with majority shareholder, ADNOC. Combined, these efforts are expected to contribute an EBITDA uplift of $165-175 million by 2030. 3 Includes the balance of the Phase 1 of the Manufacturing Improvement Plan (MIP). Compared to 2024, at 2024 prices 4 Includes $3.6 million of interest savings resulting from the credit rating upgrades following ADNOC's majority stake acquisition Customer proximity: Fertiglobe will focus on increasing price realization across regions, and contract types, while selectively accessing downstream opportunities to grow volumes and expand its margins in core markets. At the same time, the Company will leverage its global footprint and storage and distribution platform to further enhance cost efficiency. These initiatives are expected to contribute an EBITDA uplift of $30-45 million by 2030. Nitrogen product expansion: The Company plans to broaden its product portfolio by introducing a wider selection of sustainable nitrogen-based products, such as Automotive Grade Urea (AGU) and Diesel Exhaust Fluid (DEF), and to upgrade its ammonia offering to expand into attractive and higher-value products. Fertiglobe anticipates that its diversified product portfolio will yield an additional EBITDA uplift of $75-100 million by 2030. Disciplined low-carbon ammonia growth: As construction progresses on the 1 million tons per annum (mtpa) low-carbon ammonia facility at TA'ZIZ in Ruwais Industrial City, Fertiglobe remains committed to advancing its low-carbon ammonia project pipeline, aiming to deliver attractive returns and to extract value from positive trends in global sustainable fuels demand. The Company's disciplined and long-term approach to its low-carbon ammonia pipeline is set to generate an EBITDA uplift of $70-100 million by 2030. Dividends and capital structure: As of 31 March 2025, Fertiglobe reported a net debt position of $836 million, implying consolidated net debt / LTM adjusted EBITDA of 1.1x, which allows the Company to pursue both growth opportunities and dividend distributions. The Company reiterates its dividend policy to substantially pay out all excess free cash flows after providing for growth opportunities, while maintaining an investment grade credit profile. Fertiglobe remains committed to creating shareholder value, leveraging active cost optimization and manufacturing improvement initiatives to bolster cash flow generation and maintain a robust balance sheet. On 12 March 2025, Fertiglobe appointed a liquidity provider to enhance the liquidity and trading efficiency of Fertiglobe's shareholders in the market. Additionally, in April 2025, Fertiglobe launched a share buyback program to repurchase up to 2.5% of its outstanding shares, subject to market conditions, to reinforce its commitment to deliver attractive and stable shareholder returns. The buyback underscores Fertiglobe's strong confidence in its value creation potential and market positioning. As of 12 May 2025, 17.1 million shares or 0.21% of total outstanding shares were bought back. Fitch and S&P recently upgraded Fertiglobe's credit ratings to reflect its strategic significance within the ADNOC ecosystem, supporting a more favorable funding cost structure. Earlier in 2024, Moody's revised its outlook for Fertiglobe to positive from stable. Fertiglobe is rated investment grade credit ratings by S&P, Moody's and Fitch, reflecting its strong cash flow profile and prudent financial policies. About Fertiglobe: Fertiglobe is the world's largest seaborne exporter of urea and ammonia combined, and an early mover in sustainable ammonia. Fertiglobe's production capacity comprises of 6.6 million tons of urea and merchant ammonia, produced at four subsidiaries in the UAE, Egypt and Algeria, making it the largest producer of nitrogen fertilizers in the Middle East and North Africa (MENA), and benefits from direct access to six key ports and distribution hubs on the Mediterranean Sea, Red Sea, and the Arab Gulf. Headquartered in Abu Dhabi and incorporated in Abu Dhabi Global Market (ADGM), Fertiglobe employs more than 2,700 employees. Fertiglobe is listed on the Abu Dhabi Securities Exchange ('ADX') under the symbol 'FERTIGLB' and ISIN 'AEF000901015.
