Stock UAE Oil Refinery Adnoc Ruwais
Earlier this month, Abu Dhabi's state energy company and OCI NV raised $795 million by listing their Middle Eastern fertilizer venture, drawing around $17 billion of orders and attracting investors including a Singapore sovereign wealth fund. Image Credit: Bloomberg

Dubai: Fertiglobe, a joint venture between Abu Dhabi National Oil Co and chemical producer OCI, reported an eightfold increase in its net profit, owing it to higher global prices for urea and ammonia.

During the January-July period, the company profit surged to $198.5 million, compared to $23 million for the same period last year. Fertiglobe generated revenues of $1.26 billion, a 71 per cent surge from $737.5 million earned during the same period last year.

The world’s largest seaborne exporter of urea and ammonia recently raised about $795 million in IPO making it the first of a free zone company onshore in the UAE, and is open to all citizens and residents of the UAE as well as local and international institutional investors.

The company – which is also the Mena region’s largest producer of nitrogen fertilisers by production capacity – sold more than 1.145 billion shares representing 13.8 per cent of its share capital.

After its successful IPO, Fertiglobe was valued at $5.8 billion, making it the third largest listing on Abu Dhabi Securities Exchange. The stock will start trading in Abu Dhabi on October 27.

Amsterdam-based OCI will continue to have the majority stake (50 per cent) in Fertiglobe, with ADNOC holding on to 36.2 per cent of the share capital.

The company will increase its dividend guidance from at least $150 million to at least $200 million for the second-half of 2021, and from at least $315 million to at least $400 million for financial year 2022.