Fertiglobe will pay $125 million in dividends for second half of 2024

Fertiglobe, a fertilizer producer affiliated with Abu Dhabi National Oil Company (ADNOC), has declared that it will distribute a dividend of $125 million for the second half of 2024, which amounts to 5.5 fils per share. This announcement brings the total dividend for the year to $275 million, representing what the company describes as an “above-industry” average yield of 5%.

In conjunction with this dividend announcement, Fertiglobe revealed a net profit of $174 million for 2024 on revenues exceeding $2 billion. The adjusted EBITDA for the year stood at $648 million. The final quarter of the year contributed $42 million to the net profit, despite being impacted by planned maintenance and strategic deferrals of shipments, which totaled 239 kilotonnes. These deferrals, aimed at maximizing shareholder value, are expected to enhance the Q1-2025 financial results.

Additionally, the company highlighted shifting market dynamics that have begun favorably in the new year, with nitrogen markets showing considerable strength. “Urea prices are currently up 26% from early December 2024, driven by limited supply and robust early spring demand,” said Ahmed El-Hoshy, CEO of Fertiglobe. Factors such as the ongoing absence of Chinese exports, high gas prices, and logistical challenges in major exporting regions were cited as contributing to the price increases.

Fertiglobe is also expanding its capacity, particularly in low-carbon ammonia, following the transfer of stakes in three projects from ADNOC. These projects are set to increase Fertiglobe’s consolidated net low-carbon ammonia capacity to 2.4 million tons per annum (mtpa).

Last year marked the start of construction on a 1 mtpa low-carbon ammonia project in the UAE, a collaboration with Ta’ziz, GS Energy Corp., and Mitsui & Co. The project’s capital expenditure is under $500 million, which is noted as a fraction of the cost typical for new facilities globally.