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 Fertiglobe’s 2024 Revenue Cross $2 Billion

Fertiglobe’s 2024 Revenue Cross $2 Billion

Fertiglobe, the world’s largest seaborne exporter of urea and ammonia combined, the largest nitrogen fertiliser producer in the MENA region, and ADNOC’s low-carbon ammonia platform, on Monday said that it has earned a revenue of more than $2 billion in 2024.

The adjusted EBITDA was $648 million, and adjusted net profit was $174 million in 2024. In Q4-2024, the company recorded a revenue of $466 million, adjusted EBITDA of $158 million, and adjusted net profit of $42 million, Fertiglobe said announcing its financial results for Q4-204 and 12-month periods ended 31 December 2024.

The Q4-2024 performance was impacted by planned turnarounds in Algeria and the strategic deferral of several shipments to early 2025 at higher prices, Fertiglobe said in a bourse filing with Abu Dhabi Securities Exchange (ADX) this morning.

The 2024 performance was impacted by gas and power shortages in Algeria and Egypt, shipment deferrals to 2025, and the provisioning for potential changes in the Algerian gas pricing set-up, Fertiglobe said.

The company’s optimisation program, which was launched in 2023 to focus on introducing enhancements to its operating model, logistical capabilities, cost base and operational efficiencies, Fertiglobe has successfully executed the same realising its target of $50 million in recurring annualised cost savings as of 31 December 2024.

The Manufacturing Improvement Plan (MIP), which is also part of the company’s value enhancement program, is 75% underway and is on track to deliver $100 million in incremental annual EBITDA by the end of 2025.

Kudos to Team

Lauding his team for its steadfast focus on safety and operational excellence, Fertiglobe CEO Ahmed El-Hoshy said that this continued to propel their efforts in 2024 to deliver on key strategic priorities throughout the company’s transformation journey to becoming a world class leader in both nitrogen and clean fuels, with excellent safety records.

Encouragingly, nitrogen markets started the year on a strong note with urea prices now up 26% compared to their levels in early December 2024, supported by tighter markets on early spring buying, continued absence of Chinese exports, elevated gas prices and supply issues in key exporting regions, he said.

Meanwhile, Fertiglobe’s continued to advance its Manufacturing Improvement Plan (MIP), which is well on track (75% underway on a run-rate basis) to unlock $100 million in incremental annual EBITDA by the end of 2025.

Over the past year, Fertiglobe has strengthened its position as an early mover in the low-carbon ammonia space. In 2024, it took the Financial Investment Decision (FID) and commenced construction at its first 1 million tons per annum (MTPA) low-carbon ammonia project in the UAE, in partnership with TA’ZIZ, GS Energy Corporation, and Mitsui & Co., Ltd.

With ADNOC transferring its stakes in three low-carbon ammonia projects to Fertiglobe, its consolidated net low-carbon ammonia capacity is set to reach 2.4 MTPA, subject to project FIDs, he said.

Dividends

He said that in line with the disciplined capital allocation policy, Fertiglobe’s Board has proposed dividends of $125 million for H2 of 2024. This brings total dividends since the IPO to $2.5 billion, implying one of the highest total return rates in the industry.

He said that the company will provide the market with further details on the capital allocation policy as well as an update on its value creation and growth strategy at the upcoming Capital Markets Day in May 2025 with Q1 of 2025 results.

Global Business Magazine

Global Business Magazine

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