Stock - Fertiglobe
Fertiglobe operates its production facilities in the UAE, Egypt and Algeria. Image Credit: Supplied

Dubai: Fertiglobe, which went through one of the most successful IPOs on ADX last year, saw adjusted net income weigh in with $361 million for the first three months of 2022, an increase of 332 per cent year-on-year. That’s on a revenue size of $1.2 billion, up 118 per cent, as the fertilizer company’s products gained significant export traction.

Fertiglobe, a JV between ADNOC and OCI, the world’s largest sea-borne exporter of urea and ammonia, had a free cashflow of $521 million at the end of March against $151 million a year ago.

Fertiglobe’s will pass on all of its distributable free cashflow as dividends after ‘providing for growth opportunities, while maintaining an investment grade credit profile’. It had raised its H1-2022 dividend guidance to ‘at least $700 million’, well above the previous one of a minimum $200 million. The exact dividend amount, payable this October, will be announced along with the second-quarter results in August.

Abu Dhabi headquartered Fertiglobe operates plants in the UAE, Egypt and Algeria, making it the largest producer of nitrogen fertilizers in the region, and benefits from ‘direct access to six key ports and distribution hubs on the Mediterranean Sea, Red Sea, and the Arab Gulf’.

More gains ahead

“We look forward to even better performance in Q2, as we benefit from strong in-season demand, the phasing of volumes from Q1 into Q2, and higher selling prices,” said Ahmed El-Hoshy, CEO. “The majority of volumes already committed for the second quarter. This provides good forward visibility and sets us up for a strong Q3 and Q4 as healthy farm economics support higher selling prices.”

On the sustainability side, Fertiglobe has reported progress to capture ‘value accretive opportunities’ from emerging demand for clean ammonia. It has multiple initiatives to develop blue/green ammonia as a solution to decarbonize industries that make up around 90 per cent of current global greenhouse gas emissions.

Fertiglobe’s current production capacity totals 6.7 million tons of urea and merchant ammonia.

Our team is focused on running our world-scale assets efficiently and utilizing global supply chains to help address potential food security

- Ahmed El-Hoshy of Fertiglobe