Advances sustainability-focused projects
Fertiglobe, the strategic partnership between ADNOC and OCI Global, the world’s largest seaborne exporter of urea and ammonia combined, the largest nitrogen fertilizer producer in the Middle East and North Africa region, and an early mover in sustainable ammonia, recently reported Q3-2023 revenues of US$ 525mn, adjusted EBITDA of US$ 199mn and adjusted net profit of US$ 41mn.
Despite the traditional summer lull for fertilizer sales, we saw nitrogen prices maintain their positive momentum in Q3-2023, driven by tightening markets on planned and unplanned supply disruptions, restocking demand, as well as expectations of reduced exports from China. Nitrogen prices have increased significantly from their troughs in the second and third quarters, and we expect the benefits from these increases to materialize in the fourth quarter,” remarked Ahmed El-Hoshy, CEO, Fertiglobe.
Sales volumes up
Furthermore, Q3-2023 sales volumes were up 8% year-on-year, primarily due to 10% higher own-produced urea sales volumes. The expected recovery in demand ahead of the spring application season in the Northern Hemisphere should continue to support prices going in Q4-2023, and Fertiglobe remains ideally positioned to serve key import markets from our strategically located facilities, a press statement noted.
Meanwhile, Fertiglobe’s manufacturing improvement plan remains on track to deliver further operational and cost efficiencies between 2023 and 2025.
As of 30 September 2023, Fertiglobe reported a net cash position of US$ 28mn, compared to a net cash position of US$ 287mn as of 31 December 2022, allowing it to continue balancing the pursuit of future growth opportunities with an attractive dividend pay-out.
