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Fertiglobe reports $1.2 billion revenues in Q1 2022, increase of 118%

Fertiglobe, the strategic partnership between Adnoc and OCI, on Thursday announced that revenues for the first quarter increased 118 per cent to $1.2 billion, while adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) grew 171 per cent to $625 million compared to same quarter in 2021.

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In a statement, the company said its adjusted net income surged 332 per cent year-on-year basis to $361 million in January-March 2022 quarter while free cash flow increased significantly to $521 million from $151 million in first quarter of 2021.

“We are pleased to report another quarter of solid performance, backed by our unique global positioning in cost-competitive production and industry-leading distribution capabilities. With strong Q1 results driven by increased selling prices across our product portfolio, we now expect first half of 2022 dividends to be at least $700 million, up from our previous guidance of at least $200 million; given continued favourable market dynamics, the current outlook on volumes and prices, healthy cash conversion and our robust capital structure,” Ahmed El Hoshy, chief executive officer of Fertiglobe, said.

“We look forward to even better performance in Q2, as we benefit from strong in-season demand, the phasing of volumes from Q1 into Q2, and higher selling prices. The majority of volumes already committed for the second quarter. This provides good forward visibility and sets us up for a strong Q3 and Q4 as healthy farm economics support higher selling prices.”

In March, Fertiglobe was announced as a founding constituent of the FTSE Russell ADX 15 Index, representing the 15 largest and most liquid companies traded on the Abu Dhabi Securities Exchange.

Further, Fertiglobe continues to make good progress in capturing value accretive opportunities from emerging demand for clean ammonia.

The company has multiple initiatives to develop blue/green ammonia as a solution to decarbonise industries that make up around 90 per cent of current global greenhouse gas emissions, capitalising on growth opportunities from emerging demand for clean ammonia.

“As a leading producer and the largest seaborne exporter of essential nitrogen fertiliser products globally, our team is focused on running our world-scale assets efficiently and utilising global supply chains to help address potential food security concerns,” El Hoshy said.

Fertiglobe’s dividend policy is to substantially distribute all of the company’s distributable free cash flow after providing for growth opportunities, while maintaining an investment-grade credit profile.

In light of the continued favourable market dynamics and given its very healthy free cash generation, Fertiglobe raised its H1 2022 dividend guidance to at least $700 million, well ahead of previous guidance of at least $200 million. The exact dividend amount, payable in October 2022, will be announced with the Q2 results in August 2022.

— business@khaleejtimes.com

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