Fertiglobe announces $150mn interim dividend for H1 2024

The payout, for which the record date is fixed for 10 October, is equivalent to 6.6 fils per share. On Monday, Fertiglobe’s share price closed at AED2.61.

Record dividend payouts

In H1 2024, Fertiglobe reported revenues of $1,048 million, with adjusted EBITDA of $378 million, adjusted net profit of $134 million, and free cash flows of $225 million.

Including the announced dividend, Fertiglobe will have paid out $2.42 billion to shareholders since its initial public offering (IPO) in October 2021, representing one of the highest dividend yields and total return metrics in its sector.

Increased natural gas costs and lower fertilizer prices have put pressure on Fertiglobe’s margin, but its robust balance sheet and effective cash flow management continue to enable the company to pursue value-accretive growth opportunities balanced with shareholder returns.

Chief Executive Officer Ahmed El-Hoshy commented: “Fertiglobe’s approved interim dividend of $150 million is a testament to our resilient business model and our ability to sustain robust cash flow generation despite market volatility and a complex operating environment.

“This dividend is supported by active value creation initiatives launched in 2024, as we continue to make significant progress on our key strategic objectives.

“Fertiglobe is entering a pivotal phase of growth, accelerating the development of a sustainable hydrogen value chain and expanding its global platform for ammonia and clean hydrogen solutions. With a focus on innovation and sustainability, we are well-positioned to capture new opportunities.

“Looking ahead, we remain focused on digitising our operations, harnessing the power of AI and driving innovation to boost cost efficiencies that will continue to generate sustainable and long-term value for our shareholders.”

Fertiglobe is pursuing Manufacturing Improvement Plan (MIP) and a cost optimisation programme, aiming to generate incremental annual EBTIDA of $150 million by the end of 2025 compared to 2023.

The company informed the Abu Dhabi Securities Exchange (ADX) that production from its 1mtpa low-carbon ammonia project – in partnership with TA’ZIZ, GS Energy and Mitsui & Co. – is expected to start by 2027. It also secured a €397 million contract to supply renewable ammonia from Egypt to Europe.

Fertiglobe, a strategic partnership between OCI Global and the Abu Dhabi National Oil Company (ADNOC), is the world’s largest seaborne exporter of urea and ammonia combined and an early mover in sustainable ammonia. The company is the largest producer of nitrogen fertilizers in the Middle East and North Africa (MENA), with a production capacity of 6.6 million tons of urea and merchant ammonia in its four subsidiaries in the UAE, Egypt and Algeria.