Fertiglobe profit spikes on urea price, margin gains with outlook "favourable"
At least $100 million in dividends seen for H2, in addition to $125 million paid for H1
Dubai: Fertiglobe, the world’s largest seaborne exporter of urea and ammonia combined, saw double-digit growth in revenue and earnings during the third quarter, driven by higher urea prices and ongoing operational improvements.
The exclusive ammonia platform of ADNOC and XRG saw its Q3 2025 revenue rise 53% year-on-year to $758 million, while adjusted EBITDA climbed 69% to $286 million, supported by efficiency gains and higher average realised prices.
Adjusted net profit attributable to shareholders reached $134 million, up sharply from $28 million in Q3 2024. On a reported basis, net profit stood at $235 million, reflecting one-off gains from a tax settlement in Egypt related to the recognition of $720 million in goodwill for income tax purposes.
For the first nine months of 2025, revenues rose 31% year-on-year to $2 billion, and adjusted EBITDA increased 48% to $723 million. Adjusted net profit climbed 66% to $218 million, while reported net profit reached $328 million.
Strategic progress
Fertiglobe said it has implemented initiatives representing around 38% of its 2030 EBITDA growth target, advancing key projects across operations, cost reduction, and new market segments.
Manufacturing Improvement Program (MIP): 43% of targeted initiatives completed; expected to deliver $110–120 million incremental EBITDA by 2028, with an additional $20 million potential from AI integration.
Cost Reduction Plan: 84% of a $55 million savings target achieved, including $19 million in fixed cost reductions with ADNOC’s support.
Wengfu Australia Acquisition: Completed in October 2025; the new entity is self-financed and expected to add $23 million in annual EBITDA by 2030.
DEF and AGU Expansion: Completed investments in Diesel Exhaust Fluid and Automotive Grade Urea capacity, projected to generate $22 million in additional annual EBITDA by 2030.
More dividends
The company guided for at least $100 million in dividends for H2 2025, in addition to $125 million paid for H1, implying total shareholder returns of at least $287 million for the year — a yield of about 5%.
Since its IPO, Fertiglobe has distributed or committed $2.8 billion to shareholders, including share buybacks totalling 93.8 million shares (1.13% of total shares) valued at $62 million as of November 7, 2025.
Settlement in Egypt
In August 2025, Fertiglobe reached a comprehensive agreement with Egyptian tax authorities, allowing the deductibility of $720 million of goodwill linked to the Egyptian Fertilizer Company.
The settlement resulted in a $111 million gain from the reversal of prior tax provisions and recognition of a $31 million deferred tax asset, producing a total positive impact of $142 million on reported earnings.
Market outlook
Fertiglobe expects continued strength into Q4 2025, citing tight ammonia markets and high seasonal demand for urea ahead of spring planting. It also forecasts long-term growth underpinned by expanding industrial and agricultural applications for ammonia and limited new global urea capacity.
“Despite gas supply constraints in Egypt, we achieved record urea production and optimized margins,” said CEO Ahmed El-Hoshy. “With nearly 40% of our 2030 growth plan already actioned, we are on track to deliver sustainable value for our shareholders.”
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