Fertiglobe, the nitrogen fertilizer joint venture of OCI NV and Abu Dhabi National Oil Co. (ADNOC), reported an 84% jump in adjusted net profit attributable to shareholders of the company to $291.5 million in the third quarter ended Sept. 30, 2022, on a 52% year-over-year increase in revenues to $1.32 billion. This compares with the year-ago $158.2 million and $866.7 million, respectively.
Adjusted EBITDA increased by 64% to $606.3 million, up from $370.7 million.
Fertiglobe cited “the step-up” in urea and ammonia prices compared to the same period last year, supported, it said, by tight market balances, outweighing the typical seasonal slowdown in the third quarter.
For the nine months, Fertiglobe posted a 203% jump in adjusted net profit attributable to shareholders of the company to $1.09 billion, up from the prior-year $360.3 million.
Nine-month adjusted EBITDA increased by 122% to $2.0 billion, up from $902.9 million, while revenues were 87% higher at $3.97 billion, compared with the year-ago $2.13 billion.
Third-quarter own-produced sales volumes were down 2%, to 1.364 million mt from 1.396 million mt in the same prior-year period. Ammonia own-produced sales volumes increased by 4% to 322,000 mt versus the year-ago 310,000 mt, but this was offset by a 4% fall in urea own-produced sales volumes, which fell to 1.042 million mt from 1.086 million mt.
Traded third party volumes were up 11% year-over-year to 336,000 mt in the third quarter, up from the year-ago 302,000 mt.
Total own-produced and traded third party volumes were relatively unchanged in the third quarter under review, at 1.7 million mt.
For the nine-months, Fertiglobe’s total own-produced sales volumes were down by 4% to 4.158 million mt compared with 4.338 million mt in the same period in 2021. Nine-month third party volumes were up 3% year-over-year at 848,000 mt from 824,000 mt.
“Looking ahead, our order book in Bangladesh, Australia, and Europe is robust as demand picks up ahead of spring application in key import markets, giving us good visibility for the fourth quarter and the upcoming season in the first half of 2023,” said Fertiglobe CEO Ahmed El-Hoshy.
Management is guiding for a second-half dividend at a minimum of $700 million. This will bring the total for the full year 2022 to a minimum of $1.45 billion, including the $750 million first-half 2022 dividend paid to shareholders last month.
Fertiglobe product sales volumes (‘000 mt)
| 3Q-2022 | 3Q-2021 | % change | 9M-2022 | 9M-2021 | % change | |
| Own Product | ||||||
| Ammonia | 322 | 310 | +4 | 902 | 1,044 | (14) |
| Urea | 1,042 | 1,086 | (4) | 3,256 | 3,295 | (1) |
| Total own product sold | 1,364 | 1,396 | (2) | 4,158 | 4,338 | (4) |
| Third-party traded | ||||||
| Ammonia | 134 | 40 | +234 | 213 | 104 | +105 |
| Urea | 202 | 262 | (23) | 635 | 720 | (12) |
| Total traded third-party product | 336 | 302 | +11 | 848 | 824 | +3 |
| Total own product and traded third-party | 1,700 | 1,698 | +0 | 5,006 | 5,163 | (3) |