Fertiglobe approves $700m dividend for second half of 2022

The company, the world’s largest seaborne exporter of urea and ammonia, reported a 78 per cent rise in net income last year

Abu Dhabi-listed Fertiglobe is a joint venture between Adnoc and Netherlands-listed OCI. Photo: Fertiglobe

Shareholders of Fertiglobe, the world’s largest seaborne exporter of urea and ammonia, have approved a dividend payment of $700 million for the second half of 2022 after reporting strong results last year.

The dividend payment of 31 fils per share was approved for the six months to the end of December at the company’s annual general meeting, Fertiglobe said in a statement to the Abu Dhabi Securities Exchange (ADX), where its shares are traded.

Total dividends for the full year reached $1.45 billion.

“We are confident that Fertiglobe has a robust strategy for growth, as the company continues to deliver solid earnings and drive positive change in the region and globally, while creating sustainable and long-term value for its shareholders,” Dr Sultan Al Jaber, chairman of Fertiglobe, said.

“Since listing on the ADX in 2021, the company has delivered robust performance and embarked on vital initiatives to drive the energy transition and low-carbon economy, in line with Abu Dhabi and the UAE’s sustainability ambitions.”

Fertiglobe, a joint venture between Adnoc and Netherlands-listed OCI, raised about $795 million from its initial public offering in 2021, amid strong demand from international, regional and local investors.

The company’s output capacity includes 6.6 million tonnes of urea and ammonia per annum, produced at four units in the UAE, Egypt and Algeria, making it the largest producer of nitrogen fertilisers in the Mena region.

The company reported a 78 per cent increase in its 2022 net income after revenue rose on higher selling prices of key fertilisers last year.

Net profit attributable to shareholders for the 12-month period rose to $1.25 billion, from $702.7 million in 2021, while revenue for the reporting period surged 52 per cent to $5.03 billion.

Fertiglobe had a net cash position of $287 million as of December 31 last year, compared with a net debt of $487 million during the same period in the previous year.

In December, the company said it would refinance its outstanding $900 million bridge facility, originally due in 2024, with new $300 million three-year and $600 million five-year facilities.

Fertiglobe has also made progress on its one million tonne low-carbon ammonia per annum project in the UAE, in partnership with Ta’ziz, GS Energy and Mitsui, Ahmed El-Hoshy, chief executive of Fertiglobe, said.

It has also completed pilot shipments of low carbon ammonia to key markets in Asia and Europe, as well as trial Diesel Exhaust Fluid shipments to Europe to diversify its portfolio into industrial products.

"Looking ahead, despite the prevailing pricing backdrop for our products, we are in a good position to leverage our unique business model and continue to pursue compelling growth opportunities," Mr El-Hoshy said.