Fertiglobe, the largest nitrogen fertilser producer in the Middle East and North Africa (MENA), said its net profit fell 11.8% to $119 million in the first quarter of 2024 from $135 million in the same period last year due to lower selling prices.

Revenue for the quarter reached $552 million, down 20.5% year-on-year (YoY).

The decline was due to ammonia prices falling from their Q4 2024 levels on easing supply disruptions and lower gas prices than the previous quarter.

Urea prices were impacted by mixed trends due to favourable weather incentivising demand in North America coinciding with delayed planting in Europe, as well as lower-than-expected tender uptake in India. However, it was partially offset by healthy demand in other key regions including Brazil and Australia.

The medium to long-term outlook for ammonia and nitrogen markets continues to be supported by improving demand from new and existing sources and limited supply additions.

The company implemented $29 million of run-rate savings by the end of Q1 2024 and is on track to realise its $50 million cost optimisation target by year-end.

Fertiglobe reported a net debt position of $743.4 million as of March 31, 2024.

In April, the company’s shareholders approved the H2 2023 dividend of $200 million, payable in May. The total dividend for 2023 stood at $475 million.

(Editing by Seban Scaria seban.scaria@lseg.com)