The global fertilizer market has been through a sustained period of volatility, which has also been putting pressure on manufacturer yields. Image Credit: Supplied

Dubai: The ADNOC affiliated Fertiglobe saw revenues of $551.9 million for the first three months of 2024, from $693.7 million a year ago. That in turn pushed net profit to $119.2 million, from $135.4 million.

On the declines, fertiglobe points to ammonia prices having retreated from their Q4-2023 levels. This was created by an easing of supply disruptions and lower gas prices, while urea prices were impacted by ‘mixed trends’ as favourable weather incentivizing demand in North America coincided with delayed planting in Europe. There was also a lower-than-expected tender uptake in India. This in turn was partially offset by healthy demand in other key markets such as Brazil and Australia.

“It is worth noting that these results were delivered in an environment of market volatility and softer prices in Q1-2024, on lower crop and energy prices as well as reduced imports from India and Europe, coupled with an improved supply situation with recent curtailments being reversed,” said Ahmed El-Hoshy, CEO.

Buying partner's stake

Fertiglobe is a joint venture between ADNOC and OCI.

ADNOC's acquisition of OCI's majority 50 per cent stake in Fertiglobe, is expected to be completed this year.

"The transaction supports Fertiglobe’s growth strategy by unlocking further potential in its core products of urea and ammonia, accelerating the pursuit of new market and product opportunities and expanding its focus on clean ammonia," said a statement.

Once the deal is done, ADNOC will have 86.2 per cent in Fertiglobe. "Together, we have immense confidence in Fertiglobe's ability to continue passing milestones and setting new standards for our industry,” said El-Hoshy.


In April, Fertiglobe shareholders approved the H2-2023 dividend of $200 million, equivalent to 9 fils per share, which will be paid this month. This brings total dividends for 2023 to $475 million.

"Fertiglobe has continued to make good progress on its cost optimization program, having achieved 60 per cent of its $50 million run rate target implemented by the end of March 2024," the CEO added. "And remains on track to realize the full target by the end of 2024."

There is also potential to generate at least $100 million in incremental annual EBITDA by the end of 2025 compared to 2023, 'driven by improved production and energy efficiency within its ongoing Manufacturing Improvement Plan'. "These two initiatives have the potential to generate about $150 million of incremental EBITDA by the end of 2025, representing an approximately 15 per cent increase compared to 2023," said El-Hoshy.