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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.
Khaleej Times
10-04-2025
- Business
- Khaleej Times
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.
Arabian Business
10-02-2025
- Business
- Arabian Business
Fertiglobe defers Q4 shipments to benefit from rising nitrogen prices
A strategic decision to exploit the rising nitrogen prices may have eaten into the profits of Fertiglobe in the fourth quarter of 2024, but it is already paying dividends for the world's largest seaborne exporter of urea and ammonia combined and the largest nitrogen fertilizer producer in the MENA region. Fertiglobe, on Monday, reported its financial results for the three-month and twelve-month periods ended 31 December 2024. The Abu Dhabi company recorded revenues of $466 million, adjusted EBITDA of $158 million, and adjusted net profit of $42 million. This included the strategic deferral of several shipments to early 2025 at higher prices. Supported by tighter markets on early spring buying, continued absence of Chinese exports, elevated gas prices and supply issues in key exporting regions, nitrogen markets started 2025 on a strong note with urea prices up 26 per cent compared to their levels in early December 2024. In Q4 2024, Fertiglobe's performance was also impacted by planned turnarounds in Algeria. The company reported revenues for FY2024 were $2,009 million, while adjusted EBITDA was $648 million, and adjusted net profit was $174 million. 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 impacted the performance. Ahmed El-Hoshy, CEO of Fertiglobe, commented: 'I would like to commend the Fertiglobe team for their steadfast focus on safety and operational excellence, which in 2024 continued to propel our efforts to deliver on key strategic priorities throughout our transformation journey to becoming a world-class leader in both nitrogen and clean fuels, with excellent safety records. With nitrogen markets starting the year on a strong note, we are pleased with our strategic decision to defer shipments (239kt) to the early weeks of 2025, shifting $59 million of EBITDA and $29 million of net profit to Q1 2025.' Despite facing disruptions throughout the year, particularly during the summer period due to external factors in Egypt and Algeria, the decline in production was limited and amounted to only 3 per cent YoY. Adjusting for external factors and the deferrals, own-produced sales volumes would have been up 3 per cent on a YoY basis. The company said active steps have been taken in Algeria to produce more power on-site with a new boiler to reduce dependence on the external grid and improving the future reliability of the plants. Fertiglobe also announced it has successfully executed on its cost optimisation program, realising its target of $50 million in recurring annualised cost savings. Launched in 2023, the optimisation program focuses on introducing enhancements to the company's operating model, logistical capabilities, cost base and operational efficiencies. The Manufacturing Improvement Plan (MIP), which is also part of the company's value enhancement program, is 75 per cent underway and is on track to deliver $100 million in incremental annual EBITDA by the end of 2025. Dividend and outlook The Board of Directors proposed dividends of $125 million for the second half of 2024 (equivalent to 5.5 fils per share), which brings the total dividends since the IPO to $2.5 billion. In its outlook for the market, Fertiglobe said it expects nitrogen market fundamentals in the near term to remain firm, supported by elevated energy prices and globally tight supply during the spring season. The longer-term outlook is supported by robust demand, limited supply additions and favourable farmer economics, as well as ammonia demand from new and existing applications.
Zawya
10-02-2025
- Business
- Zawya
Fertiglobe reports full-year adjusted EBITDA of $648mln
Fertiglobe reported adjusted EBITDA of $648 million in 2024 and $158 million in Q4 2024, respectively, while adjusted net profit attributable to shareholders was $174 million in 2024 and $42 million in Q4 2024. Q4 2024 results were impacted by planned turnarounds and the strategic deferral of several shipments (239kt) to early 2025 to maximize shareholder value. The deferred shipments shifted $59 million of EBITDA and $29 million of net profit from Q4 2024 to Q1 2025, leveraging tightening urea markets and improved in-season pricing (urea FOB Egypt up 26% vs. Dec-24 to $455/t). Fertiglobe realized its cost optimization target of $50 million in annual recurring savings and is on track to realize $100 million in incremental EBITDA from its Manufacturing Improvement Plan (MIP) [1] by the end of 2025. 2024 own-produced sales volumes would have been up 3% Y-o-Y in 2024, adjusting for external factors and shipment deferrals to 2025, reflecting structural measures taken to improve reliability and efficiency levels. Fertiglobe's Board recommends H2 2024 dividends of $125 million (5.5 fils per share), subject to shareholder approval, bringing 2024 total dividends to $275 million, and implying an above-industry average yield of 5%. A full strategy update will be announced at our Capital Markets Day (CMD) with Q1 2025 results in May 2025. Market outlook: Nitrogen market fundamentals in the near-term are firm, supported by elevated energy prices and globally tight supply during the spring season. The longer-term outlook is supported by robust demand, limited supply additions and favorable farmer economics, as well as ammonia demand from new and existing applications. Abu Dhabi, UAE: 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 reported its financial results for the three-month and twelve-month periods ended 31 December 2024 ('Q4 2024' and 'FY 2024' results, respectively). In Q4 2024, Fertiglobe recorded revenues of $466 million, adjusted EBITDA of $158 million, and adjusted net profit of $42 million. Q4 2024 performance was impacted by planned turnarounds in Algeria and the strategic deferral of several shipments to early 2025 at higher prices. 2024 reported revenues were $2,009 million, while adjusted EBITDA was $648 million, and adjusted net profit was $174 million. 2024 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. As of 31 December 2024, Fertiglobe has successfully executed on its cost optimization program, realizing its target of $50 million in recurring annualized cost savings. Launched in 2023, the Company's optimization program focuses on introducing enhancements to Fertiglobe's operating model, logistical capabilities, cost base and operational efficiencies. The Manufacturing Improvement Plan (MIP), which is also part of the Company's value enhancement program, is 75% underway and is on track to deliver $100 million in incremental annual EBITDA by the end of 2025.1 Ahmed El-Hoshy, CEO of Fertiglobe, commented: 'I would like to commend the Fertiglobe team for their steadfast focus on safety and operational excellence, which in 2024 continued to propel our efforts to deliver on key strategic priorities throughout our transformation journey to becoming a world class leader in both nitrogen and clean fuels, with excellent safety records. Encouragingly, nitrogen markets started the year on a strong note with urea prices now up 26% compared to their levels in early December 2024, supported by tighter markets on early spring buying, continued absence of Chinese exports, elevated gas prices and supply issues in key exporting regions. We are pleased with our strategic decision to defer shipments (239kt) to the early weeks of 2025, shifting $59 million of EBITDA and $29 million of net profit to Q1 2025, and benefiting from improved netbacks in alignment with our focus on maximizing shareholder value. I am proud of the team's successful execution on our cost optimization target of $50 million in annualized savings. Meanwhile, we continue to advance our Manufacturing Improvement Plan, which is well on track (75% underway on a run-rate basis) to unlock $100 million in incremental annual EBITDA by the end of 2025. Despite facing disruptions throughout the year, particularly during the summer period due to external factors in Egypt and Algeria, the decline in our production was limited and amounted to only 3% Y-o-Y. Adjusting for external factors and the deferrals to 2025, own-produced sales volumes would have been up 3% on a Y-o-Y basis, showcasing the resilience and dedication of our team in minimizing disruptions, sustaining operations, and progressing structural measures to improve long-term reliability, productivity and efficiency levels. In addition, active steps have been taken in Algeria to produce more power on-site with a new boiler to reduce our dependence on the external grid and improving the future reliability of our plants. Over the past year, Fertiglobe has strengthened its position as an early mover in the low-carbon ammonia space. In 2024, we took the Financial Investment Decision (FID) and commenced construction at our first 1 million ton per annum (mtpa) low-carbon ammonia project in the UAE, in partnership with TA'ZIZ, GS Energy Corporation, and Mitsui & Co., Ltd. The project is well-positioned within our portfolio and investment criteria, underpinned by robust double-digit IRRs and benefits from over-the-fence utilities and feedstock supply and focus on back-end ammonia infrastructure, leading to total project capex of <$500 million, a fraction of global greenfield costs. 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. This significant low-carbon ammonia production capacity further cements Fertiglobe's leadership position in nitrogen and clean fuels sectors. Looking ahead, we maintain a firm focus on technology, innovation, and digitization and continue to invest in AI integration throughout our operations to unlock value and further enhance efficiencies. El-Hoshy concluded: 'In line with our disciplined capital allocation policy, Fertiglobe's Board of Directors proposed dividends of $125 million for H2 2024 (equivalent to 5.5 fils per share). This brings total dividends since the IPO to $2.5 billion, implying one of the highest total return rates in the industry. We are ideally positioned to maximize shareholder value going forward, as we capitalize on our strategic industry positioning and ADNOC's supportive and integrated energy ecosystem. We look forward to providing the market with further details on our capital allocation policy as well as a comprehensive update on our value creation and growth strategy at our upcoming Capital Markets Day in May 2025 with our Q1 2025 results'. Dividends and capital structure As of 31 December 2024, Fertiglobe reported a net debt position of $1,048 million, implying consolidated net debt / LTM adjusted EBITDA of 1.6x, which allows the Company to balance growth opportunities and dividend payments. Supported by robust free cash generation and a healthy balance sheet, 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. In Q4 2024, Fitch and S&P upgraded Fertiglobe's credit ratings, following the conclusion of ADNOC's acquisition on Fertiglobe's role as ADNOC's primary vehicle for low-carbon ammonia growth. Moody's had upgraded its outlook for Fertiglobe to positive from stable in early 2024. In 2022, Fertiglobe achieved investment grade credit ratings by S&P, Moody's and Fitch, supported by an attractive cash flow profile and a prudent financial policy.
