Dubai: An 87 per cent revenue growth propelled the ADNOC joint venture Fertiglobe to a net profit of $1.1 billion, which meant a 203 per cent increase for the nine-month period. The ADX-listed company is the largest producer of nitrogen fertilizers in the Middle East and Africa.
As H2-2022 dividend, Fertiglobe expects to pay a ‘minimum of $700 million’ (Dh0.31 a share) to shareholders in April 2023 after paying $750 million in October as interim dividend for this year.
For the nine-month period, revenue increased 87 per cent to $3.97 billion.
Global increases in fertilizer prices helped Fertiglobe’s cause. “We are pleased to report another very solid set of results, driven by a step-up in urea and ammonia prices, supported by tight market balances outweighing the usual seasonal slowdown,” said Ahmed El-Hoshy, CEO.
Order book and free cash flow
“Our international order book is robust, as demand picks up in key import markets, giving us good visibility for Q4(-22) and H1-2023. Our competitive position on the global cost curve and free cash flow conversion capacity means we are well-placed to continue to return capital to shareholders and expect H2-2022 dividends to be a minimum of $700 million.”
In the July to September period, Fertiglobe – where ADNOC’s JV partner is Netherlands' OCI – recorded $1.32 billion in revenues, a gain of 52 per cent y-o-y, and helping turn a profit of $292 million. That’s an increase of 84 per cent.
“Building on our position as a leading producer and the largest seaborne exporter globally of essential nitrogen fertilizer products, we aim to fill supply gaps where possible and help in addressing global food security concerns,” the CEO added.
