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Abu Dhabi-based Fertiglobe posted a Q3 2022 net profit of $292 million, up 84% compared with the year-earlier period, on higher product prices, and said demand outlook for next few months was robust.
The profit, however, well below the analysts’ mean estimate of $319 million, according to data provider Refinitiv.
Revenues for the quarter increased 52% year-on-year (YoY) to $1.32 billion. Free cash flow increased to $189 million from $56 million in Q3 2021 and was at net cash position of $644 million as of 30 September 2022. This would also allow it to look at
The fertilizer company, a joint venture between state energy firm ADNOC and Dutch chemical producer OCI, said on Thursday that due to its strong free cash flow position it expected to disburse a minimum of $700 million in H2 dividends.
"This would bring the total for 2022 to at least $1.45 billion, including the $750 million H1 2022 dividend paid to shareholders in October," the company added.
Ahmed El-Hoshy, CEO of Fertiglobe said the solid set of results was driven by a rise in urea and ammonia prices, supported by tight market balances outweighing the usual seasonal slowdown. "Looking ahead, our international order book is robust, as demand picks up in key import markets, giving us good visibility for Q4 and H1 2023."
(Reporting by Brinda Darasha; editing by Daniel Luiz)
