Fertiglobe, the Abu-Dhabi-based Middle Eastern joint venture partnership between OCI NV, Amsterdam, and Abu Dhabi’s state-energy company, Abu Dhabi National Oil Corp. (ADNOC), reported a big jump in net income attributable to shareholders of $366.5 million for the fourth quarter ended Dec. 31, 2021, up from $45.1 million for the corresponding prior-year period. Adjusted net income was $376.6 million, versus $43.6 million the previous year.
Diluted earnings per share were $0.044, up from $0.005.
Fourth-quarter adjusted EBITDA more than trebled to $647.6 million, up from $144.9 million, while revenues increased by 138 percent to $1.18 billion from $498.5 million a year ago.
Fertiglobe attributed the robust results to higher selling prices, which offset lower sales volumes due to planned turnarounds.
Total sales volumes were 22 percent lower in the fourth quarter compared with the same year-ago period, dropping to 1.43 million mt from 1.83 million mt.
Of this total, the company’s own-produced sales volumes also were down 22 percent to 1.23 million mt, down from 1.58 million mt.
Own-produced ammonia sales volumes in the quarter grew 64 percent year-over-year to 243,000 mt from 148,000 mt, but this was more than offset by a 31 percent fall in own-produced urea sales volumes, which fell to 991,000 mt versus the year-ago 1.43 million. The company cited turnarounds at the Fertil operation in Abu Dhabi during the fourth quarter of last year as mainly behind the urea sales volume turndown.
Fertiglobe’s traded third-party volumes too were 24 percent lower in the final quarter of 2021, dropping to 193,000 mt from 253,000 mt a year ago.
“Fertiglobe delivered a solid set of results in fourth-quarter 2021, further underpinning our exciting growth potential,” said Fertiglobe CEO Ahmed El-Hoshy. “Our current order book looks healthy into second-quarter 2022, and we expect first-half 2022 to be strong, driven by attractive farm economics, strong demand for our ammonia end markets, and our globally competitive position.”
For the full-year ended Dec. 31, 2021, Fertiglobe posted another big jump in net income attributable to shareholders, to $702.7 million, up from the previous year $74.3 million. Adjusted net income was $736.6 million versus the year-ago $66.1 million.
Full-year diluted earnings per share were $0.085, up from $0.009.
Adjusted EBITDA for the year came in at $1.55 billion, up the prior year $453.3 million, while revenues more than doubled, to $3.31 billion versus $1.55 billion a year earlier.
Full-year total sales volumes increased by 7 percent to 6.59 million mt, up from 6.15 million in 2020. Of these, own-product sales volumes increased by 2 percent, to 5.57 million mt, while third-party traded volumes grew by 47 percent, reaching 1.02 million mt.
Fertiglobe confirmed a second-half 2021 interim dividend of AED0.15 per share (about $340 million), payable in April 2022, which exceeds the previous guidance of from “at least $240 million” (GM Oct. 15, 2021). It will be the company’s first dividend since the successful listing of the company on the Abu Dhabi Securities Exchange (ADX) on Oct. 27 last year (GM Oct. 29, 2021).
Based on the current outlook, the company expects the first-half 2022 interim dividend, payable in October 2022 to be higher than the current guidance of “at least $200 million,” with an update to be provided during the first-quarter 2022 results in May.
Following the IPO, OCI continues to own a majority stake in Fertiglobe’s share capital – calculated to be just over half – while ADNOC now indirectly owns a 36.2 percent interest.
Fertiglobe Product Sales Volumes (‘000 mt)
| Q4-2021 | Q4-2020 | % change | FY-2021 | FY-2020 | % change | |
| Own Product | ||||||
| Ammonia | 243 | 148 | +64 | 1,287 | 896 | +44 |
| Urea | 991 | 1,431 | (31) | 4,286 | 4,565 | (6) |
| Total own product sold | 1,234 | 1,579 | +22 | 5,573 | 5,461 | +2 |
| Third-party traded | ||||||
| Ammonia | 40 | 67 | (40) | 144 | 130 | +10 |
| Urea | 153 | 186 | (18) | 873 | 563 | +55 |
| Total traded third-party product | 193 | 253 | (24) | 1,017 | 693 | +47 |
| Total own product and traded third-party | 1,427 | 1,832 | (22) | 6,590 | 6,154 | +7 |