Fertiglobe announces robust 2023 financial results and approves $200mn dividend

Abu Dhabi-based Fertiglobe, a leader in nitrogen fertilizer production in the Middle East and North Africa, has announced the approval of a $200 million cash dividend for the second half of 2023. This decision was confirmed during the company’s Annual General Meeting on April 30, where shareholders also ratified the audited accounts for 2023.

The dividend announcement brings the total for fiscal year 2023 to $475 million, marking one of the highest dividend yields in the industry. Since its initial public offering, Fertiglobe has returned a substantial $2,265 million to its shareholders.

Dr. Sultan Ahmed Al Jaber, Chairman of Fertiglobe, highlighted the company’s solid financial performance in 2023, noting its resilience amid normalizing urea and ammonia prices following their peak in 2022. He emphasized the company’s ongoing commitment to its low-carbon ammonia growth strategy, illustrated by achievements such as the first international shipment of renewable ammonia and the deployment of the pioneering CycloneCC carbon capture unit in the UAE.

Al Jaber also noted the productive partnership between Adnoc and OCI, which has positioned Fertiglobe as the world’s largest seaborne exporter of ammonia and urea fertilizer. He mentioned Adnoc’s plans to increase its shareholding in Fertiglobe, underscoring confidence in the company’s quality, future growth strategy, and role in the global market for low-carbon and renewable ammonia.

Fertiglobe’s CEO, Ahmed El Hoshy, remarked on the company’s significant operational, commercial, and sustainability milestones in 2023, positioning it for substantial future growth. “I am particularly pleased with our agility in responding to market dynamics and challenges, which enables us to maximize shareholder value while prioritizing sustainable growth and our ambitious decarbonization agenda,” he said.

The company’s resilience in 2023 was bolstered by the ongoing Manufacturing Improvement Plan (MIP), which is expected to increase annual EBITDA by 2025. El Hoshy highlighted the success of Fertiglobe’s cost optimization program, which has already achieved 51% of its $50 million run-rate target within six months of launch.

In 2023, Fertiglobe’s focus on operational excellence led to a 5% increase in own-produced sales volumes. This, coupled with ongoing cost structure optimization, resulted in a full-year revenue of $2,416 million and adjusted EBITDA of $1,004 million. The adjusted net profit stood at $363 million, maintaining a healthy adjusted EBITDA margin of 42%.