Fertiglobe to Pay $150 Million as Dividend for H1-2024

Fertiglobe, a leading producer of nitrogen fertilizers and clean ammonia solutions in the UAE, announced that its Board of Directors has approved an interim cash dividend of $150 million for H1 of 2024.

The dividend will be paid later this month to shareholders of record as at 10 October 2024, Fertiglobe said in a regulatory filing with Abu Dhabi Stock Exchange (ADX) on Tuesday.

Fertiglobe’s robust balance sheet and effective cash flow management continues to enable the company to pursue selective value accretive growth opportunities balanced with shareholder returns.

Including the announced dividend, Fertiglobe will have paid $2.42 billion in dividends since its initial public offering (IPO) in October 2021, representing one of the highest dividend yields and total return metrics in its sector.

Based on the interim dividend announced, the annualised dividend yield exceeds 5%, further reinforcing the Company’s commitment to delivering strong returns to shareholders.

Resilient Business

Fertiglobe CEO Ahmed El-Hoshy said that his company’s approved interim dividend of $150 million is a testament to their resilient business model and also ability to sustain robust cash flow generation despite market volatility and a complex operating environment.

He said that this dividend is supported by active value creation initiatives launched in 2024, as the company continues to make significant progress on its key strategic objectives.

“Fertiglobe is entering a pivotal phase of growth, accelerating the development of a sustainable hydrogen value chain and expanding its global platform for ammonia and clean hydrogen solutions. With a focus on innovation and sustainability, we are well-positioned to capture new opportunities. Looking ahead, we remain focused on digitising our operations, harnessing the power of AI and driving innovation to boost cost efficiencies that will continue to generate sustainable and long-term value for our shareholders,” he added.

Value Creation Initiatives

Fertiglobe has carried out several value creation initiatives, including its Manufacturing Improvement Plan (MIP) and cost optimisation program, collectively targeted to generate incremental annual EBTIDA of $150 million by the end of 2025, compared with 2023.

In 2024, the company achieved significant progress on key strategic objectives, including the Final Investment Decision (FID) on its 1 MTPA low-carbon ammonia project in partnership with TA’ZIZ, GS Energy and Mitsui & Co., with production expected by 2027.

Additionally, Fertiglobe secured a $440.69 million contract to supply renewable ammonia from Egypt to Europe, following its selection as the winning bidder in H2Global’s first-of-its-kind supplier auction; and is planning to reach an FID on Egypt Green Hydrogen by H1 of 2025.

In H1 of 2024, Fertiglobe reported revenues of $1.04 billion, with adjusted EBITDA of $378 million, adjusted net profit of $134 million, and free cash flows of $225 million.