• Q3 2022 revenues increased 52% year-on-year to $1.32 billion, with adjusted EBITDA up 64% to $606 million, driven by higher selling prices
  • Adjusted net profit was $292 million in Q3 2022, increasing 84% from $158 million in Q3 2021
  • Strong cash position supports the Company in pursuing growth opportunities, as well as enabling a highly attractive dividend payout

Abu Dhabi, UAE: Fertiglobe (ADX: FERTIGLB), the strategic partnership between ADNOC and OCI, the world’s largest seaborne exporter of urea and ammonia combined, the largest nitrogen fertilizer producer in the Middle East and North Africa (“MENA”) region, and an early mover in clean ammonia, today reported that its Q3 2022 revenues increased 52% year-on-year to $1.32 billion, while adjusted EBITDA grew 64% to $606 million. Free cash flow increased to $189 million in Q3 2022 from $56 million in Q3 2021, a 237% increase versus the same period last year. Adjusted net profit in Q3 2022 was $292 million, increasing by 84% year-on-year.

For the nine-month period, revenue increased 87% in 2022, to reach $3.97 billion, with adjusted EBITDA of $2.0 billion up 122% and adjusted net profit of $1.10 billion increasing by 203%.

Fertiglobe’s strong cash position supports the Company in pursuing compelling growth opportunities as well as enabling a highly attractive dividend payout. Management guidance for H2 2022 dividends is that the Company will pay a minimum of $700 million, equivalent to AED 0.31 per share, to shareholders in April 2023. Fertiglobe's attractive dividend outlook is backed by its competitive position on the global cost curve and free cash flow conversion capacity.

Ahmed El-Hoshy, CEO of Fertiglobe commented:

“We are pleased to report another very solid set of results, driven by a step-up 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. Our competitive position on the global cost curve and free cash flow conversion capacity means that we are well-placed to continue to return capital to shareholders and expect H2 2022 dividends to be a minimum of $700 million, bringing the total for 2022 to at least $1.45 billion, including the $750 million H1 2022 dividend paid to shareholders in October.

“Our operational excellence program continues to be at the forefront of our agenda with a sharpened focus on efficiently utilizing our young, world-scale production assets and capturing the highest netbacks as we capitalize on global supply chains – in partnership with OCI. Building on our position as a leading producer and the largest seaborne exporter globally of essential nitrogen fertilizer products, we aim to fill supply gaps where possible and help in addressing global food security concerns. I would like to express my gratitude to the Fertiglobe team for working hard to deliver on our strategy and for always putting safety first. We are together looking forward to continuing to create value for shareholders in 2023.”

The outlook for the fundamentals of Fertiglobe’s nitrogen end markets continues to be underpinned by tight supply, healthy farm economics and decades-low grain stocks globally, which incentivize the use of nitrogen fertilizers.

Meanwhile, Fertiglobe is making solid progress with its low-/no-carbon ammonia project pipeline, including a demonstration plant in Egypt as a proof of concept for green hydrogen to green ammonia. The Company is looking to deliver on its hydrogen strategy, while targeting investments significantly below replacement costs and setting the stage for the leading role it aspires to play in decarbonizing industries that make up in excess of 90% of current global greenhouse gas emissions.

Dividends and capital structure

Strong earnings and cash generation during the quarter resulted in a net cash position of $644 million as of 30 September 2022, compared to net debt of $487 million as at 31 December 2021 (0.3x net debt / adjusted EBITDA), supporting future growth opportunities and an attractive dividend pay-out.

Fertiglobe’s dividend policy is to substantially pay out all excess free cash flows after providing for growth opportunities, while maintaining investment grade credit ratings (S&P: BBB-, Moody’s: Baa3, Fitch: BBB-; all with stable outlooks). Based on the current visibility on Fertiglobe's order book and its favourable positioning on the global cost curve, management is guiding for H2 2022 dividends at a minimum of $700 million, payable in April 2023. The exact amount of the H2 2022 dividend will be announced with Q4 2022 results in February 2023. During calendar year 2022, Fertiglobe paid cash dividends of $1.1 billion.

-Ends-

About Fertiglobe:

Fertiglobe is the world’s largest seaborne exporter of urea and ammonia combined, and an early mover in clean ammonia. Fertiglobe’s production capacity comprises of 6.7 million tons of urea and merchant ammonia, produced at four subsidiaries in the UAE, Egypt and Algeria, making it the largest producer of nitrogen fertilizers in the Middle East and North Africa (MENA), and benefits from direct access to six key ports and distribution hubs on the Mediterranean Sea, Red Sea, and the Arab Gulf. Headquartered in Abu Dhabi and incorporated in Abu Dhabi Global Market (ADGM), Fertiglobe employs more than 2,600 employees and was formed as a strategic partnership between OCI N.V. (“OCI”) and the Abu Dhabi National Oil Company (“ADNOC”). Fertiglobe is listed on the Abu Dhabi Securities Exchange (“ADX”) under the symbol “FERTIGLB” and ISIN “AEF000901015. To find out more, visit: www.fertiglobe.com.