Fertiglobe reports Q3 2024 revenues of $496 million and adjusted EBITDA of $176 million
Fertiglobe, the world’s largest seaborne exporter of urea and ammonia combined, the largest nitrogen fertiliser producer in the Middle East and North Africa region, and ADNOC's low-carbon ammonia platform, reported revenues of US$496 million for the third quarter, with an adjusted EBITDA of US$176 million. Net profit attributable to shareholders stood at US$31 million, despite provisions linked to potential changes in gas pricing at its Algerian Sorfert plant.
For the nine months ending in September 2024, Fertiglobe achieved revenues of US$1.5 billion, adjusted EBITDA of US$496 million, and a net profit of US$135 million. These figures underscore the company's strong operational performance amid fluctuating market conditions.
Strategic expansion under ADNOC
Following ADNOC’s acquisition of a majority stake in Fertiglobe, the company is positioned to become a key vehicle in ADNOC's low-carbon ammonia strategy. Fertiglobe will integrate several low-carbon ammonia projects, including two projects in the UAE, where ownership is expected to nearly double, and the Baytown, Texas project in partnership with ExxonMobil, where ADNOC holds a 35% equity stake.
The consolidation of these projects is expected to more than double Fertiglobe’s current ammonia capacity, enhancing its role as a world leader in low-carbon ammonia production.
Operational challenges and efficiency improvements
Sales volumes of Fertiglobe’s own-produced products fell by 7% year-on-year due to planned and unplanned maintenance. However, the company continues to make strides in its Manufacturing Improvement Plan (MIP), targeting an additional US$150 million in EBITDA by the end of 2025. Fertiglobe has already implemented 92% of its cost optimization initiatives as of Q3 2024, realising significant savings and operational efficiencies.
Fertiglobe’s management highlighted a favourable outlook for nitrogen fertilizers, supported by tight market conditions and low export levels from China. In terms of shareholder returns, the company has distributed US$2.42 billion in dividends since its IPO in 2021, including the recent H1 2024 dividend of US$150 million.
CEO Ahmed El-Hoshy stated: “The integration of ADNOC's low-carbon ammonia projects into Fertiglobe's portfolio marks a significant milestone, positioning us as a leader in sustainable ammonia production. We are committed to delivering value to our shareholders through disciplined capital allocation and a focus on operational excellence.”
