Fertiglobe reports Q3 2024 revenues of $496 million and adjusted EBITDA of $176 million

image is Fertiglobe

Fertiglobe, the world’s largest seaborne exporter of urea and ammonia combined, the largest nitrogen fertiliser producer in the Middle East and North Africa region, and ADNOC's low-carbon ammonia platform, reported revenues of US$496 million for the third quarter, with an adjusted EBITDA of US$176 million. Net profit attributable to shareholders stood at US$31 million, despite provisions linked to potential changes in gas pricing at its Algerian Sorfert plant.

For the nine months ending in September 2024, Fertiglobe achieved revenues of US$1.5 billion, adjusted EBITDA of US$496 million, and a net profit of US$135 million. These figures underscore the company's strong operational performance amid fluctuating market conditions.

Strategic expansion under ADNOC

Following ADNOC’s acquisition of a majority stake in Fertiglobe, the company is positioned to become a key vehicle in ADNOC's low-carbon ammonia strategy. Fertiglobe will integrate several low-carbon ammonia projects, including two projects in the UAE, where ownership is expected to nearly double, and the Baytown, Texas project in partnership with ExxonMobil, where ADNOC holds a 35% equity stake.

The consolidation of these projects is expected to more than double Fertiglobe’s current ammonia capacity, enhancing its role as a world leader in low-carbon ammonia production.

Operational challenges and efficiency improvements

Sales volumes of Fertiglobe’s own-produced products fell by 7% year-on-year due to planned and unplanned maintenance. However, the company continues to make strides in its Manufacturing Improvement Plan (MIP), targeting an additional US$150 million in EBITDA by the end of 2025. Fertiglobe has already implemented 92% of its cost optimization initiatives as of Q3 2024, realising significant savings and operational efficiencies.

Fertiglobe’s management highlighted a favourable outlook for nitrogen fertilizers, supported by tight market conditions and low export levels from China. In terms of shareholder returns, the company has distributed US$2.42 billion in dividends since its IPO in 2021, including the recent H1 2024 dividend of US$150 million.

CEO Ahmed El-Hoshy stated: “The integration of ADNOC's low-carbon ammonia projects into Fertiglobe's portfolio marks a significant milestone, positioning us as a leader in sustainable ammonia production. We are committed to delivering value to our shareholders through disciplined capital allocation and a focus on operational excellence.”

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