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Fertiglobe posts lower profits at $505m in 2023; dividends unveiled

Fertiglobe posts lower profits at $505m in 2023; dividends unveiled
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Fertiglobe
FERTIGLOBE
-2.00% 2.45 -0.05

Abu Dhabi – Mubasher: Fertiglobe recorded an annual plunge of 72% in net profit to $505 million during the January-December 2023 period, compared to $1.82 billion.

The lower net profits were mainly due to the overall decrease in revenues, according to a press release.

Revenues plummeted by 52% to $2.41 billion last year from $5.02 billion due to a decrease in nitrogen product prices.

Earnings per share (EPS) attributable to shareholders amounted to $0.04 as of 31 December 2023, an annual drop of 72% from $0.15.

Total assets witnessed a 16% year-on-year (YoY) decline to $4.62 billion in 2023, versus $5.53 billion.

Ahmed El Hoshy, CEO of Fertiglobe, revealed: “In light of the recently announced sale of OCI's 50% shareholding in Fertiglobe to ADNOC for $3.62 billion. The transaction, which will see ADNOC become a majority shareholder in Fertiglobe with a total ownership of 86.20%, is expected to close in 2024.

“Our priorities will be to continue to unlock potential in our core products of urea and ammonia, accelerate the pursuit of new market and product opportunities, and expand our focus on sustainable ammonia, with a continued focus on delivering growth and maximizing shareholder value,” El Hoshy added.

The CEO noted: “By prioritizing the ongoing Manufacturing Improvement Plan (MIP), Fertiglobe's management sees potential to generate at least $100 million in incremental annual EBITDA by 2025 compared to 2023, driven by improved production and energy efficiency.”

Dividends

The board of Fertiglobe approved cash dividends of $200 million for the second half (H2) of 2023.

Subject to the approval of the shareholder at the annual general meeting in April 2024, the ADX-listed firm will disburse 9 fils per share.

This implies “full-year dividends of $475 million and one of the highest dividend yields in the company’s industry and market.”

El Hoshy stated: “Looking ahead, the company’s strategy is to continue balancing dividend payments with selective investment in value accretive growth projects, supported by healthy free cash flow conversion and a robust balance sheet.”

In the first nine months (9M) of 2023, Fertiglobe’s net profits attributable to the owners retreated by 76% YoY to $254.40 million from $1.07 billion.