Fertiglobe, the Middle Eastern joint venture partnership between OCI NV, Amsterdam, and Abu Dhabi’s state-energy company, reported a third-quarter adjusted net income attributable to shareholders of $158.2 million, up from the year-ago adjusted net income of $5.8 million. Adjusted earnings per share for the quarter were $0.070 against $0.004 a share a year ago.
Adjusted EBITDA increased 257 percent to $370.7 million, up from $103.7 million, driven by significantly higher selling prices and sales volume growth of 21 percent. Third-quarter revenues rose by 175 percent, to $866.7 million.
Fertiglobe’s total own-produced sales volumes increased 21 percent on the year, at 1.4 million mt, up from the year-ago 1.16 million mt. Own-produced ammonia sales volumes rose 22 percent to 310,000 mt. Own-produced urea sales volumes grew by 20 percent from 903,000 mt to 1.086 million mt, despite a full turnaround at one of EFC Egypt’s urea lines, which began in June and was completed in early August 2021.
Traded third-party volumes also more than doubled during the quarter, reaching 302,000 mt.
Fertiglobe issued stand-alone financial results for the first time on Nov. 8, and follows the successful listing of the company on the Abu Dhabi Securities Exchange (ADX) on Oct. 27 (GM Oct. 29, p. 33). Following the IPO, OCI continues to own a majority stake in the company’s share capital – calculated to be just over half – while ADNOC now indirectly owns a 36.2 percent interest. Prior to the IPO, OCI owned a 58 percent stake and ADNOC a 42 percent interest. The IPO generated gross proceeds of about $461 million, OCI reported
“We expect this strong earnings momentum to continue with significantly higher EBITDA in the fourth quarter of 2021, compared to quarter three, driven by increasing ammonia and urea prices, exemplifying the structural shift to a demand-driven market environment for nitrogen products over the medium term,” said Fertiglobe CEO Ahmed El-Hoshy.
As previously announced, due to its strong earnings momentum, Fertiglobe has increased its dividend guidance from “at least $200 million” for the second-half of FY2021, payable in April 2021 (GM Oct. 15, p. 29). It said the final number will be determined in February 2022.
Fertiglobe product sales volumes (‘000 mt)
| ‘000 mt | 3Q-2021 | 3Q-2020 | % change | 9M-2021 | 9M-2020 | % change |
| Own product | ||||||
| Ammonia | 310 | 253 | +22 | 1,044 | 748 | +40 |
| Urea | 1,086 | 903 | +20 | 3,295 | 3,134 | +5 |
| Total own product | 1,396 | 1,156 | +21 | 4,338 | 3,882 | +12 |
| Third-party traded | ||||||
| Ammonia | 40 | 12 | +230 | 104 | 63 | +64 |
| Urea | 262 | 106 | +146 | 720 | 377 | +91 |
| Total traded third party product | 302 | 119 | +155 | 824 | 440 | +87 |
| Total own product and traded third party | 1,698 | 1,274 | +33 | 5,163 | 4,322 | +19 |