Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
Fertiglobe on Wednesday delivered stellar first-quarter results, beating analyst expectations across the board, supported by strong revenues, higher prices and improved operational efficiency.
The company reported revenues of $915 million, up 32% year-on-year and 13% quarter-on-quarter, while adjusted EBITDA rose 31% year-on-year to $342 million.
Adjusted net profit attributable to shareholders nearly doubled to $145 million, marking a 98% year-on-year increase.
According to BoFA Securities, the EBITDA of $342 million came in 11% above its estimate of $308 million and 8% higher than the company-compiled consensus of $318 million. The performance was driven primarily by a stronger-than-expected topline, with revenues also exceeding both estimates and consensus by around 16%.
Operational performance remained robust, with urea utilisation rates across the platform reaching 96% in the first quarter, up from 87% a year earlier, supported by record performance in Egypt.
Despite a 12% year-on-year decline in own-produced sales volumes due to trade route disruptions and base effects, higher realised prices for urea and ammonia more than offset the impact. Strong seasonal demand and tight global supply conditions supported pricing, contributing to the overall earnings outperformance.
BoFA also noted that total volumes, including third-party trading, reached 1.56 million tonnes, about 4% above its estimates, while realised urea prices of around $545–550 per tonne exceeded its forecast of $535 per tonne.
Ahmed El-Hoshy, Chief Executive Officer of Fertiglobe, said: “Our Q1 2026 performance reflects the strength and resilience of Fertiglobe’s platform, with disciplined execution translating into strong earnings growth despite a complex operating environment due to the conflict in the Middle East.”
He added that the company achieved “excellent urea utilisation rates of 96% across the platform, a remarkable improvement from 87% in Q1 2025,” driven by the Manufacturing Improvement Plan and enhanced operational efficiencies. The company highlighted that its Egyptian operations delivered record performance, with no downtime and operating rates exceeding 105% at EFC, further supporting overall output and efficiency gains.
Fertiglobe also benefited from a reduction in the tax rate at its UAE plant, with the rate lowered to 15% for profits below $100 million and 20% for profits above $100 million, down from 25% previously, which is expected to support future earnings.
Looking ahead, the company said near-term nitrogen market fundamentals remain robust, driven by strong seasonal demand and tight supply, while its Grow 2030 strategy continues to progress with around 43% of targeted initiatives already implemented.
BoFA Securities maintained its “buy” rating on the stock with a price target of Dh3.9, citing strong earnings visibility, higher realised prices and improved operational performance.
