OCI NV, Amsterdam, reported a second-quarter adjusted net income attributable to shareholders of $121.1 million on revenues of $1.46 billion, compared with the year-ago net loss of $19.9 million and revenues of $875.4 million.
Diluted earnings per share were $0.693, versus the previous year’s $0.011 per share loss.
Adjusted EBITDA increased 144 percent to a record $535.4 million, up from $219.5 million. Revenues grew by 67 percent.
“During the quarter we continued to benefit from our diversified stream of global revenues and our competitive position on the global cost curve, with around half of our global gas requirement at fixed gas prices,” said OCI NV CEO Ahmed El-Hoshy.
“Nitrogen markets reached an inflection point this year following a five-year downturn, with sustainably higher prices compared to 2020, reflecting healthy farm economics, strong demand, and limited new supply,” he said.
The CEO highlighted the “particularly strong” performance improvements at Fertiglobe, with “a significantly strengthened competitive position” “in light of higher feedstock pricing in other regions – Europe in particular – and at the methanol group. The latter saw good onstream performance, volume growth of almost 70 percent year-on-year, strong pricing support, and access to key European and U.S. markets.
Six-month adjusted net income attributable to shareholders came in at $215.5 on revenues of $2.58 billion, versus the prior-year net loss of $101.9 million and revenues of $1.69 billion. Diluted earnings per share were $1.160 versus the previous year’s $0.400 per share loss.
First-half adjusted EBITDA more than doubled to $987.2 million, up from $412.5 million. Revenues increased 53 percent.
OCI Nitrogen Segment
| $ million | Nitrogen U.S. | Europe | Fertiglobe | Elim. | Total Nitrogen | |
| 2Q-2021 | ||||||
| Total Revenues | 237.6 | 263.8 | 716.6 | (25.4) | 1,192.6 | |
| Adjusted EBITDA | 86.5 | 56.8 | 304.2 | 0.3 | 447.8 | |
| 2Q-2020 | ||||||
| Total Revenues | 165.3 | 229.9 | 374.2 | (21.6) | 747.8 | |
| Adjusted EBITDA | 58.1 | 53.6 | 95.5 | 0.9 | 208.1 | |
| 1H-2021 | ||||||
| Total Revenues | 341.5 | 484.0 | 1,260.0 | (43.3) | 2,042.2 | |
| Adjusted EBITDA | 166.2 | 83.2 | 537.2 | 0.5 | 787.1 | |
| IH-2020 | ||||||
| Total Revenues | 284.0 | 392.3 | 737.5 | (33.5) | 1,380.3 | |
| Adjusted EBITDA | 99.2 | 78.9 | 209.1 | 1.9 | 389.1 | |
OCI’s total product sold volumes increased 2 percent in the second quarter, reaching 4.03 million mt, up from the year-ago 3.95 million mt. But own-produced sold volumes dipped 1 percent to 3.23 million mt, down from 3.26 million mt the previous year.
Own-produced nitrogen sales volumes fell 9 percent during the second quarter from a year-ago, with the company citing timing of sales between quarters, and due to turnarounds in EFC and OCI nitrogen. However, OCI said this was more than offset by higher nitrogen pricing during the quarter.
Traded third-party volume sales increased by 18 percent in the quarter compared with a year ago, to 803,000 mt.
Six-month total volumes sold grew 4 percent, to 7.56 million mt, while OCI-produced sold volumes increased 4 percent, to 6.22 million mt. First-half traded third-party volume sales were up 8 percent, to 1.34 million mt.
El-Hoshy said the outlook for OCI and its nitrogen and methanol end markets remains robust for the remainder of this year and beyond, supported by strong underlying demand for nitrogen fertilizers driven by healthy farm economics, and a continued recovery in the company’s industrial markets for ammonia, methanol, melamine, and DEF.
“Shorter-term, we have good visibility into the third quarter with a healthy order book across our core markets and we are benefiting from further increases in selling prices in quarter three compared to both the second quarter of 2021 and the third quarter of 2020,” the CEO said.
OCI Product Sales Volumes
| ‘000 mt | 2Q-2021 | 2Q-2020 | % change | 1H-2021 | 1H-2020 | % change |
| Own product | ||||||
| Ammonia | 517.9 | 346.8 | 49 | 1,104.9 | 888.3 | 24 |
| Urea | 1,137.6 | 1,240.7 | (8) | 2,240.8 | 2,357.0 | (5) |
| CAN | 318.4 | 670.6 | (53) | 646.8 | 840.8 | (23) |
| UAN | 443.9 | 496.1 | (11) | 723.8 | 836.1 | (13) |
| Total fertilizer | 2,417.8 | 2,754.2 | (12) | 4,716.3 | 4,922.2 | (4) |
| Melamine | 32.8 | 29.3 | 12 | 67.0 | 59.8 | 12 |
| DEF | 186.0 | 129.0 | 44 | 336.8 | 269.4 | 25 |
| Total nitrogen products | 2,636.6 | 2,912.5 | (9) | 5,120.1 | 5,251.4 | (3) |
| Methanol1 | 594.7 | 352.2 | 69 | 1,101.8 | 751.2 | 47 |
| Total own products sold | 3,231.3 | 3,264.7 | (1) | 6,221.9 | 6,002.6 | 4 |
| Traded third party | ||||||
| Ammonia | 80.2 | 70.3 | 14 | 121.2 | 144.6 | (16) |
| Urea | 501.9 | 297.8 | 69 | 722.4 | 455.9 | 58 |
| UAN | 6.9 | 6.7 | 3 | 20.5 | 12.5 | 64 |
| Methanol | 20.7 | 88.6 | (77) | 99.4 | 188.4 | (47) |
| AS | 114.1 | 169.6 | (33) | 232.6 | 328.2 | (29) |
| DEF | 79.2 | 50.3 | 57 | 139.1 | 106.0 | 31 |
| Total traded third party | 803.0 | 683.3 | 18 | 1,335.2 | 1,235.6 | 8 |
| Total own product and traded third party | 4,034.3 | 3,948.0 | 2 | 7,557.1 | 7,238.2 | 4 |
1 Including OCI’s 50 percent share of Natgasoline volumes