OCI Global reports $4 billion in revenue for 2024 and highlights significant transformation

OCI Global (Euronext: OCI) announced its financial results for the second half and full year 2024, showcasing a year of significant transformation driven by strategic divestments, debt reduction, and substantial shareholder returns. The company completed several high-profile asset sales totaling over $11.6 billion, enhancing its balance sheet and positioning it for a more streamlined future.

OCI’s strategic moves in 2024 included the divestment of several key assets: OCI Methanol to Methanex, the company’s entire stake in Fertiglobe to ADNOC, Iowa Fertilizer Company to Koch Industries, and OCI Clean Ammonia to Woodside Energy. These transactions have allowed OCI to repay approximately $1.8 billion in debt and distribute $3.3 billion in cash to shareholders. An additional distribution of up to $1 billion is planned for Q2 2025.

Financial Performance

For the full year 2024, OCI Global reported a decrease in Total Operations revenue, which fell to $4.08 billion from $5.02 billion in 2023. Adjusted EBITDA also saw a decline, from $1.21 billion in 2023 to $826 million in 2024. However, the company saw growth in its Continuing Operations segment, particularly its European Nitrogen business, which posted a revenue increase of 3% year-over-year.

Despite these setbacks, OCI’s balance sheet was notably strengthened by the successful asset sales. As of December 31, 2024, the company reported a net cash position of $1.37 billion, up from a net debt position of $2.19 billion in mid-2024.

H2 2024 Results and Market Conditions

In H2 2024, OCI’s revenue from Total Operations dropped by 28% year-on-year to $1.65 billion, reflecting the divestment of several key assets. Adjusted EBITDA for the period was $234 million, a sharp decrease from $552 million in H2 2023, largely due to the deconsolidation of Iowa Fertilizer and Fertiglobe.

The European Nitrogen segment reported a 12% revenue increase, driven by a 40% rise in own-produced sales volumes. However, higher and more volatile gas prices, as well as weaker pricing for nitrogen products, led to a decline in adjusted EBITDA to $7 million from $20 million in H2 2023.

OCI’s free cash flow for H2 2024 was negative, reflecting ongoing costs related to strategic reviews and cost optimization initiatives. Operating free cash flow outflows amounted to $250 million, an improvement from the $449 million outflow in H2 2023. OCI expects a rebound in cash flow in the coming quarters as gas prices normalize.

Strategic Divestments and Future Outlook

OCI’s transformation in 2024 was marked by the completion of several significant asset sales. The divestment of its global methanol business to Methanex for $2.05 billion is expected to close in Q2 2025, positioning OCI for greater flexibility in its operations. Additionally, the sale of OCI Clean Ammonia to Woodside for $2.35 billion and the divestiture of Fertiglobe and IFCo provided OCI with substantial liquidity to repay debt and return capital to shareholders.

Looking ahead, OCI aims to complete the OCI Methanol transaction, reach Project Completion for OCI Clean Ammonia, and capitalize on favorable market conditions for its European Nitrogen business. With a leaner organizational structure and reduced corporate costs, OCI is well-positioned for future growth.

Despite market volatility, OCI remains confident in its strategy, supported by strong fundamentals and an agile, streamlined operational structure. The company’s management also expects to exceed its corporate cost reduction targets by the end of 2025, aiming for a $30-$40 million reduction in run-rate corporate costs.

OCI’s ongoing commitment to value creation and shareholder returns positions it to continue benefiting from growing regulatory support and expected improvements in natural gas pricing.