Media ININ Economy We Trust
Abu Dhabi, May 9 / FertiGlobe, the strategic partnership between ADNOC and OCI Global, announced today that it achieved revenues during the first quarter of 2023 amounting to $ 694 million, and adjusted earnings before interest, tax, depreciation and amortization amounted to $ 297 million, Adjusted net profit amounted to US$ 135 million and cash flows amounted to US$ 271 million.
Fertiglobe achieved a 9% increase in the company’s sales volume during the first quarter of 2023, as a result of its commitment to achieving the objectives of its disciplined commercial strategy, and its possession of a central distribution base that enables it to target basic demand centers that achieve attractive returns. Markets improved with prices rising in some areas during the second quarter, while Fertiglobe has a strong order book in the coming months.
In line with its ongoing commitment to creating and enhancing shareholder value, Fertiglobe intends to distribute dividends for the first half of 2023 of no less than $250 million, equivalent to at least 11 fils per share, payable in October 2023, with the exact amount to be announced with the results. The second quarter of 2023 next August.
Ahmed Al-Hoshi, CEO of Fertiglobe, said: “I am pleased to announce the results for the first quarter of 2023. The outlook for the fundamentals of the nitrogen fertilizer markets remains favorable in the medium and longer term, as the new production capacities that began during 2022 have been absorbed, and additions are expected to remain in the range.” New production capacities are limited during the next four years, and an improvement in agricultural demand is expected thanks to strong farm economies.
He added, “We continue to implement several initiatives to enhance free cash flow, including the manufacturing improvement plan that was announced in the previous year to raise operating rates and increase adjusted earnings before interest, tax, depreciation and amortization over the next 2-3 years. In addition to launching a program to improve efficiency costs and enhance the cost structure with the aim of achieving savings of $50 million annually over the next 12-18 months and strengthening the company’s position within the first quarter of the global cost curve.”
Fertiglobe announced the production of green ammonia according to specifications at its facilities in Egypt, following the operation of the first phase of the green hydrogen project in Ain Sukhna, Egypt, during the COP27 climate conference during the fourth quarter of 2022, and the company expects to increase production rates throughout the year.
When all phases are completed, the project will produce up to 15,000 tons of green hydrogen as the primary raw material for the manufacture of up to 90,000 tons of green ammonia annually at Fertiglobe’s ammonia plants.
These projects and initiatives confirm Fertiglobe’s commitment to taking concrete steps to reduce the environmental impact of its operations and sectors whose emissions are difficult to reduce, including the energy and transportation sectors.
