Dubai: The ADNOC entity Fertiglobe will be paying $125 million (at 5.5 fils a share) as H2-2024 dividend and taking the full-year shareholder payout to $275 million. This, the fertilizer company says, is an ‘above-industry’ average yield of 5%.
“A full strategy update will be announced at our Capital Markets Day (CMD) with Q1-2025 results in May,” said Fertiglobe.
This comes as the company announced 2024 adjusted EBITDA of $648 million, while net profit came to $174 million. This was from revenues of just over $2 billion for last year.
The October to end December 2024 period saw net profit at $42 million, with Fertiglobe saying the results were impacted by ‘planned turnarounds’. And there was also a ‘strategic deferral’ of shipments – totaling 239kt) to early 2025.
This was done to ‘maximize shareholder value and that the results will show in Q-2025 numbers.
“The deferred shipments shifted $59 million of EBITDA and $29 million of net profit from Q42024 to Q1-2025, leveraging tightening urea markets and improved in-season pricing,” the company said in a statement.
The global market conditions are turning favourable, it added.
“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,” said Ahmed El-Hoshy, CEO of Fertiglobe.
Capacity gains
Fertiglobe has significant capacity additions coming its way. It was earlier announced that ADNOC is transferring stakes in three low-carbon ammonia projects to Fertiglobe, This would mean the latter’s consolidated net low carbon ammonia capacity would reach 2.4 mtpa.
“This significant low-carbon ammonia production capacity further cements Fertiglobe’s leadership position in nitrogen and clean fuels sectors,” said a statement.
Last year, it started construction on a 1 million ton per annum (mtpa) low-carbon ammonia project in the UAE. (This is in partnership with Ta’ziz, GS Energy Corp., and Mitsui & Co., Ltd.)
This sets up a total project capex of under $500 million, a ‘fraction of global greenfield costs’.
