A big jump in Vertiglobe's profits during the first quarter of 2022 - Energy

Fertiglobe, the world’s largest marine exporter of urea and ammonia and the largest producer of nitrogen fertilizers in the Middle East and North Africa, increased revenue by 118% to $1.2 billion (AED 4.4 billion).

The company’s profits, which are registered on the Abu Dhabi Securities Exchange and is a strategic partnership between ADNOC and OCI, increased before interest, tax, depreciation and amortization by 171% to reach $625 million (AED 2.3 billion) compared to the first quarter of 2021, according to the first quarter financial results. Released today, Thursday, May 12, 2022.

Benefiting from the global transition to a hydrogen economy, Fertiglobe has become one of the most promising products to enable the transformation of the energy sector, as a leader in the ammonia trade and clean ammonia production.

clean ammonia

The company continues to make tangible progress in its efforts to seize the opportunities of emerging demand for clean ammonia, and is adopting multiple initiatives to develop blue ammonia as a solution to reduce carbon emissions from industries that account for nearly 90% of current global greenhouse gas emissions.

The company achieved a significant increase in adjusted net income by 332% year-on-year, and free cash flow increased to $521 million (AED 1.9 billion), from $151 million (AED 0.6 billion) during the first quarter of 2021.

One of Vertiglobe's projects in the UAE
One of Vertiglobe’s projects in the UAE

Company business results

Fertiglobe CEO, Ahmed El Hoshi, said: “We are pleased with the company’s strong performance during this period as well, which is supported by our world-class position in cost-competitive production and sector-leading distribution capabilities.

He added: We currently expect dividends for the first half of 2022 to exceed $700 million (2.6 billion dirhams), an increase from our previous trends, which amounted to at least $200 million (735 million dirhams), against the backdrop of continued favorable market conditions and the current price vision. sales volumes, higher cash flows, and a strong capital structure.”

He pointed out that the company is looking to achieve better performance during the second quarter, as it expects to benefit from a strong demand rate during the fertilization season, postponing some sales from the first quarter to the second quarter, and increasing selling prices, and that the majority of the quantities already produced for the second quarter have been committed, which It provides a good future vision, and prepares for the third and last quarters of 2022.

supply chains

Al Hoshi explained: “As a leading global producer and the world’s largest marine exporter of basic nitrogen fertilizer products, our global team is focused on efficiently managing our globally spanning assets and leveraging global supply chains to the fullest in partnership with OCI, to try to fill any supply gaps that may arise. arising and thus helping to address potential cereal shortages and general food security concerns.”

He pointed out that last March, it was announced that Vertiglobe had joined the founding members of the FTSE Russell Abu Dhabi Securities Exchange 15 Index “Fadax 15”, saying: “We are proud to be one of the 15 most liquid companies on the Abu Dhabi Securities Exchange, and we look forward to continuing In providing outstanding performance to enhance and increase value for our shareholders.”

profit distribution

Vertiglobe’s dividend policy is to distribute the largest portion of the distributable free cash flow after allocating enough to growth opportunities while maintaining an investment grade credit position.

In light of prevailing market conditions and due to the company generating high free cash flow, Fertiglobe raised its first half 2022 dividend guidance to more than $700 million (AED 2.6 billion), well above the previous guidance of $200 million (734 million). million dirhams) at least, and the exact dividend amount, payable in October 2022, will be announced with results for the second quarter of 2022 in August 2022.

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