Fertiglobe, the world’s largest seaborne exporter of urea and ammonia, reported an increase of more than eightfold in its fourth-quarter profit as revenue jumped on the back of higher demand for its products.
Net profit attributable to owners of the company for the three-month period to the end of December rose to $366.5 million, from $45.1m in the same period a year earlier, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
Revenue during the period more than doubled to $1.18 billion.
“Fertiglobe delivered a solid set of results in fourth-quarter of 2021, further underpinning our exciting growth potential,” said chief executive Ahmed El-Hoshy.
“Considering healthy free-cash generation in the second half of 2021 and our commitment to create shareholder value, we are pleased to announce our first post-IPO [initial public offering] dividend of $340m, exceeding our previous guidance.”
Fertiglobe, a joint venture between Adnoc and Netherlands-listed OCI, raised about $795m in its initial IPO last year, amid strong demand from international, regional and local investors. The listing was the third-largest on the ADX.
The company — which is also the Mena region’s largest producer of nitrogen fertilisers by production capacity — sold more than 1.145 billion shares representing 13.8 per cent of its share capital last year.
“Our current order book looks healthy into the second quarter of 2022, and we expect [the] first half [of] 2022 to be strong, driven by attractive farm economics, strong demand in our ammonia end-markets and our globally competitive position,” Mr El-Hoshy said.
Fertiglobe’s full-year profit climbed more than ninefold to $702.7m as revenue more than doubled to $3.31bn, according to the stock exchange filing.
The company is bullish about ammonia as the world focuses on the reduction of emissions to protect the environment.
“Ammonia is the dominant energy carrier for hydrogen. With green hydrogen seen as essential to support the decarbonisation of industry, food, transport and energy, there is a huge opportunity for clean ammonia to deliver green hydrogen all over the world,” he said.
Last month, the company signed an agreement with Abu Dhabi’s Masdar and France’s Engie to co-develop a green hydrogen plant in the UAE for the production of ammonia.
As part of the agreement, the three companies will study the development, design, financing, procurement, construction, operation and maintenance of an industrial-scale and globally cost-competitive green hydrogen plant in Al Ruwais.
It will have a potential capacity of up to 200 megawatts and be operational by 2025, with Fertiglobe as the sole long-term off-taker.
“This represents a great opportunity for the company and the UAE to play a crucial role in the global energy transition. Abu Dhabi is an ideal location to produce green hydrogen, given the country’s commitment to a low carbon future, its unique renewables profile and its strategic geographic location,” Mr El-Hoshy said.
Hydrogen is gaining importance as the fuel of the future and low-carbon hydrogen is deemed essential in decarbonising hard-to-abate industrial sectors such as heavy transport.
