Today's Edition
ABU DHABI (WAM)
Fertiglobe, the strategic partnership between ADNOC and OCI Global, on Monday announced that it has signed a non-binding Memorandum of Understanding with AD Ports Group to explore logistics and supply chain opportunities for storing and shipping urea and ammonia at ports in Egypt and the UAE.
The two companies will explore opportunities to leverage AD Ports Group’s state-of-the-art cargo handling and storage infrastructure as Fertiglobe strengthens its urea and ammonia storage and shipping capabilities, reduces its greenhouse gas (GHG) footprint, enhances operational efficiency and further automates its logistical activities.
Ahmed El-Hoshy, CEO of Fertiglobe, commented, “We are pleased to partner with AD Ports Group, a UAE national champion and a global leader in maritime trade and logistics. Through this MoU, we will identify compelling opportunities across our logistics and supply chain management requirements, enabling us to bolster our ability to store and ship urea and ammonia from Egypt and further optimise our logistics’ cost structure.
“Today, our strategically located production facilities benefit from direct access to international ports and distribution hubs, allowing us to easily access major end-markets and regions with high demand. This MoU will enable us to expand our partnership beyond Egypt and the UAE, as well as to the shipping and storage of green ammonia, in line with our commitment to deliver more sustainable products to the world.”
By capitalising on AD Ports Group’s robust supply chain capabilities and sustainable modes of inland transportation, Fertiglobe seeks to further optimise its logistics’ cost structure, a key component of its recently introduced cost optimisation programme, targeting $50 million in recurring annualised cost savings by the end of 2024.
Captain Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, said, “In line with the UAE’s wise Leadership’s vision for economic diversification, this partnership cements AD Ports Group’s commitment to driving broader global collaboration and supply chain development for alternative fuels, which contributes to achieving the Group’s sustainability objectives.
“We anticipate this will become a remarkable step towards a greener, more efficient future. As two homegrown champions, AD Ports Group and Fertiglobe are embarking on this strategic collaboration that holds immense potential. We are pleased that, by leveraging our integrated portfolio and extensive infrastructure and supply chain expertise, Fertiglobe can strengthen its urea and ammonia storage and shipping capabilities.”
Fertiglobe and AD Ports Group will explore potential collaboration opportunities in other geographies and develop supply chain solutions for green ammonia, a hydrogen carrier, with Fertiglobe’s existing operations strategically located near key shipping routes.
In May, Fertiglobe reported Q1 2023 revenue of $694 million, adjusted EBITDA of $297 million, adjusted net profit of $135 million, and free cash flow of $271 million.
It delivered a 9% increase in own-produced sales volumes during the quarter. This was driven by the company’s disciplined commercial strategy and centralised distribution capabilities, targeting demand centres that offer attractive netbacks. The company continues to have a strong order book for the coming months, and markets have begun to tighten into the second quarter, resulting in improved prices in some regions.
