Fertiglobe investors set for at least $150 million dividend after Q2 profit jump

Dubai: Fertiglobe shareholders could receive a dividend of at least $150 million for the first half of 2026 after the company more than doubled its quarterly adjusted earnings.

The proposed distribution, equivalent to 6.73 fils per share, represents an increase of more than 20% compared with the same period last year and an annualised dividend yield of around 5%.

Board approval is expected in September, with the payment scheduled for October 2026.

The Abu Dhabi-listed fertiliser producer reported adjusted EBITDA of $371 million for the second quarter, an increase of 111% from a year earlier. Adjusted net profit attributable to shareholders rose around 12.5 times to $145 million.

Revenue reached $1.1 billion during the quarter, up 92% year on year, supported by improved pricing and strong production performance in Egypt and Algeria.

First-half profit rises

Revenue for the first six months of the year increased 59% to $2 billion, while adjusted EBITDA rose 63% to $713 million.

Adjusted net profit attributable to shareholders reached $289 million, more than three times the amount reported during the first half of 2025.

Fertiglobe recorded an overall urea utilisation rate of 92% across its operations during the period, supported by record utilisation levels in Egypt and Algeria and the company’s Manufacturing Improvement Plan.

Operating gains helped offset export shipment constraints in the UAE, which contributed to a 3% decline in own-produced sales volumes compared with the previous year. Around 100,000 tonnes of urea shipments were also moved into early July.

The company exported volumes from the UAE equivalent to 56% of its second-quarter production, despite critical maintenance work affecting one production line.

Higher prices offset lower volumes

Fertiglobe used its production network, trading operations and logistics infrastructure to redirect supplies during the quarter.

Improved fertiliser prices partially offset lower sales volumes and higher logistics expenses, contributing to an expansion of its adjusted EBITDA margin.

“Leveraging our diversified global footprint and established trading platform, we continued serving customers throughout the disruption. Improved pricing partially offset lower volumes and higher logistics costs, driving EBITDA margin expansion in Q2 2026,” El-Hoshy said.

Urea prices declined from the highs recorded in April amid weaker seasonal demand and the reopening of the Chinese export market.

Prices subsequently increased by more than 30% to $555 per tonne in July.

Fertiglobe expects lower urea prices and higher crop prices to improve affordability for farmers and support demand. Ammonia prices have remained supported by limited Middle East exports and higher European gas prices.

Debt falls by nearly $400 million

Net debt declined to $621 million at the end of June from $1 billion at the end of December 2025. The company’s consolidated net debt stood at 0.5 times adjusted EBITDA for the previous 12 months.

Fertiglobe has returned or proposed to return at least $3 billion to shareholders since its initial public offering, including the proposed first-half dividend.

The company is also carrying out a programme to repurchase 2.5% of its shares. It had bought back 1.34% of outstanding shares by the end of June at a cost of $74 million.

“Our strong performance and disciplined capital allocation support a proposed dividend increase of at least 20% year-on-year. Including this distribution, Fertiglobe will have returned more than 50% of its IPO market capitalisation,” El-Hoshy said.

Fertiglobe, which is majority-owned by XRG, operates production facilities in the UAE, Egypt and Algeria with a combined capacity of 6.6 million tonnes of urea and merchant ammonia.