Alpha Dhabi and Fertiglobe Report Growth in Revenue in H1-2024

Alpha Dhabi Holding, one of the fastest growing investment holding companies in the MENA region, listed on the Abu Dhabi Securities Exchange (ADX) and Fertiglobe, another ADX-listed company, the world’s largest seaborne exporter of urea and ammonia combined and the largest nitrogen fertilizer producer in the MENA region, on Thursday reported growth in revenue for H1-2024.

While Alpha Dhabi Holding’s revenue stood at $7.98 billion, Fertiglobe earned a revenue of $1.05 billion, the two companies said in separate filings with the regulator this morning.

Alpha Dhabi has posted remarkable H1 of 2024 financial results, with revenue soaring to $7.98 billion, representing 32% increase from the same period last year. Net profit from operations also surged to $1.39 billion, marking 92% y-o-y increase, while gross profit was at $1.74 billion, 38% y-o-y increase.

Total gains in the first half of the year at $540 million, were lower than corresponding period in 2023 when the group de-recognised PureHealth. The reduction in gains, together with the adoption of Corporation Tax in the UAE in 2024, contributed to a decrease in group net profit, overall.

More specifically, the results demonstrate that strategic investments made across diverse, future-centric industries remains one of Alpha Dhabi’s key differentiators as a leading regional investment holding company.

The first half of the year saw strong performance across all business segments, due to the impacts of strategic investments. The strength of the company’s portfolio contributed significantly with industrial contributing 41%, real estate 30%, construction 17%, in addition to energy, hospitality, and climate capital representing 12%.

Alpha Dhabi has also continued to reinforce its balance with half-year total assets at $42.2 billion while the company’s cash balance was at $5.64 billion. Half year total equity was at $22.11 billion reflecting the depth and resilience financial position.

Alpha Dhabi’s diverse portfolio has been a significant driver of its continued growth, with all segments delivering notable performance and contributing to the increase in profit.

Fertiglobe

Fertiglobe’s revenue of around $1.05 billion included adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $378 million, adjusted net profit of $134 million, and free cash flows of $225 million between January and June this year.

For the three-month period between April and June 2024, the company reported a revenue of $496 million between April and June this year, adjusted EBITDA of $156 million, and adjusted net profit attributable to shareholders of $15 million.

Despite the increase in natural gas costs and the steady level of grain prices in Q2 of 2024 compared with the previous quarter, nitrogen prices have been impacted by delayed demand, cautious buying behaviour and reduced urea imports from India, partially offset by some supply disruptions towards the end of the quarter.

Fertiglobe’s strong balance sheet position and effective cash flow management continue to enable the Company to pursue growth initiatives, whilst balancing shareholder returns.

As of 30 June 2024, Fertiglobe reported a net debt position of $880.6 million, implying net debt/ LTM adjusted EBITDA of 1.0x, which allows the company to balance future growth opportunities and dividend pay-out, supported by robust free cash generation and a healthy balance sheet.

Fertiglobe remains committed to creating shareholder value, leveraging active cost optimization and manufacturing improvement initiatives to bolster cash flow generation and maintain a robust balance sheet.