Today's Edition
SAMIHAH ZAMAN (ABU DHABI)
Fertiglobe (ADX: FERTIGLB), ADNOC's low carbon ammonia platform - known to be the world’s largest seaborne exporter of urea and ammonia combined and the largest nitrogen fertiliser producer in the Middle East and North Africa region - Monday announced its financial results for the three-month and six-month periods ended June 30, 2025.
In the second quarter of 2025, Fertiglobe reported revenue of $566 million, reflecting a 14% year-on-year increase, while adjusted EBITDA grew 26% to $176 million, with adjusted net profit attributable to shareholders stood at $12 million, representing a 68% increase compared to Q2 2024.
In the first half of 2025, Fertiglobe reported revenue of $1.26 billion, reflecting a 20% increase year-on-year increase. Adjusted EBITDA for the period stood at $437 million, up 36% year-on-year, while adjusted net profit attributable to shareholders stood at $85 million, representing an 18% decline compared to the prior year, driven by a one-off FX gain in H1 2024.
Ahmed El-Hoshy, CEO of Fertiglobe, issued a statement on the occasion, commenting: “This quarter demonstrated Fertiglobe’s growing operational resilience, with an adjusted EBITDA increase of 26% Y-o-Y. Fertiglobe remains strategically placed to deliver robust performance and maintain operational continuity amid challenging conditions and I am proud of how our team continued to execute with agility, discipline, while maintaining an unwavering focus on safety and long-term value creation."
El-Hoshy explained how the company had taken advantage of downtime to undertake maintenance in Egypt: "We capitalised on the downtime in Egypt to perform critical maintenance activities, successfully extending the turnaround cycle, with maintenance capex expected towards the lower end of our previous guidance at $145 million. Notably, excluding external factors and turnarounds, our own-produced sales volumes for the second quarter of 2025 would have been up 4% Y-o-Y, while H1 2025 own-produced sales volumes would have increased 7% Y-o-Y."
Demand for urea products has grown in multiple markets globally, and Fertiglobe looking to take advantage of relevant opportunities.
"Building on our strengthened platform and robust commercial capabilities, Fertiglobe is poised to capitalise on the recent recovery in urea prices, which are approximately 20% above Q2 2025 levels0F. This pricing rebound is supported by robust import demand from key markets such as India and Ethiopia," El-Hoshy said.
"In line with our commitment to deliver value to our shareholders, we propose H1 2025 dividends of at least $100 million (4.4 fils per share), subject to board approval in September 2025 with payment in October 2025. Including the $31 million worth of shares bought back in Q2 2025, Fertiglobe provides one of the highest total return metrics in the industry at the combined $131 million cash returns to shareholders for H1 2025," he added.
Fertiglobe exports its urea and ammonia to 53 countries with a 10% collective market share of global trade in these products.
El-Hoshy also delved into the company's future growth strategy: "With the continued support of ADNOC, we remain confident in our strategic path to become a globally integrated nitrogen champion creating long-term value for shareholders, while continuing to innovate and differentiate our solutions that support global food security and enable the energy transition.
"We remain committed to our recently announced Grow 2030 Strategy to become a $1bn+ EBITDA global nitrogen champion by 2030. This strategy is anchored on four key pillars: operational excellence, customer proximity, nitrogen production expansion, and disciplined low-carbon growth.
"This includes Project Harvest – a 1 mtpa lower carbon ammonia facility currently under construction – which remains a core part of our decarbonisation roadmap. In parallel, we continue to evaluate the development of Project Baytown in collaboration with ADNOC and ExxonMobil, as part of our broader efforts to advance low-carbon ammonia solutions globally."
The company has also pushed back the start of its Project Rabdan1F, a low-carbon ammonia production facility in Ruwais.
"While Fertiglobe remains dedicated to advancing its low-carbon project portfolio, the company recognises that the global low-carbon ammonia market remains in the early stages of development, with regulatory frameworks and demand signals continuing to evolve. As such, and in line with Fertiglobe’s disciplined approach to capital deployment across its low-carbon ammonia project pipeline, Fertiglobe has taken the decision to rephase Project Rabdan1F, a 1 mtpa low-carbon ammonia project and associated auto-thermal reformer.
"This decision reflects the company’s prudent investment strategy and commitment to timing capital allocation effectively and is consistent with the broader objectives of the Grow 2030 Strategy, particularly its focus on disciplined low-carbon growth."
"In addition, Fertiglobe expects its recently announced proposed acquisition of the distribution assets of Wengfu Australia to play a key role in strengthening its downstream presence in high-netback markets, in line with its strategic focus on customer proximity. Wengfu Australia’s distribution assets are also projected to enhance supply chain resilience and unlock long-term distribution synergies. The transaction is subject to regulatory approvals and is anticipated to close in H2 2025," El-Hoshy added.
