Fertiglobe, a leading producer of nitrogen fertilizers and industrial chemicals, has announced its financial results for the first half of 2024, highlighting substantial revenue growth and significant strategic developments. The company’s revenue for H1 2024 reached $1.048 billion, with an adjusted EBITDA of $378 million and an adjusted net profit of $134 million. Free cash flows for the period stood at $225 million.
In Q2 2024, Fertiglobe achieved revenues of $496 million, with an adjusted EBITDA of $156 million and an adjusted net profit attributable to shareholders of $15 million. Increased natural gas costs and stable grain prices have impacted nitrogen prices due to delayed demand, cautious buying, and reduced urea imports from India. However, supply disruptions towards the end of the quarter partially offset these factors.
Consequently, the company’s robust financial position and effective cash flow management have enabled it to pursue growth initiatives while still maintaining shareholder returns. Looking ahead, Fertiglobe is set to propose a dividend for H1 2024 to its Board in September, with payments expected in October 2024.
Ahmed El-Hoshy, CEO of Fertiglobe, commented, “Over the past quarter, we have made significant strides towards our strategic objectives, including advancements in operational projects and decarbonization efforts. Notably, we have reached a Final Investment Decision (FID) on the TA’ZIZ 1 mtpa low carbon ammonia project in partnership with TA’ZIZ, GS Energy Corporation, and Mitsui & Co., Ltd. Construction is set to begin soon, with production expected to commence in 2027.”
El-Hoshy also highlighted Fertiglobe’s success in the H2Global auction, where the company secured a contract to supply renewable ammonia from Egypt to Europe, valued up to €397 million until 2033. This agreement is a significant step towards the development of the first integrated green hydrogen plant in Africa, with a Final Investment Decision anticipated by H1 2025.
Additionally, Fertiglobe, supported by Adnoc, delivered the world’s first certified bulk commercial shipment of low-carbon ammonia to Mitsui & Co. Ltd for clean-power generation in Japan. This shipment, produced at Fertiglobe’s Abu Dhabi facilities, underscores the strong partnership with Adnoc and its commitment to decarbonization.
The company has made considerable progress in its cost optimization program, achieving 84% of its $50 million run-rate target by June 2024, resulting in $42 million in cost savings. Fertiglobe’s Manufacturing Improvement Plan (MIP) aims to generate at least $100 million in incremental annual EBITDA by the end of 2025, focusing on energy efficiency and production enhancements.
As of June 30, 2024, Fertiglobe reported a net debt position of $880.6 million, maintaining a net debt to LTM adjusted EBITDA ratio of 1.0x. This financial stability supports the company’s future growth opportunities and dividend payouts, bolstered by strong cash generation and a healthy balance sheet.
Fertiglobe remains dedicated to creating shareholder value through active cost optimization, manufacturing improvements, and strategic investments in artificial intelligence across its production platforms.
