Home UAE Abu Dhabi Abu Dhabi’s Fertiglobe delivers revenue growth of 105% to $1.471bn The fertiliser company, a joint venture between ADNOC and OCI, reported that its free cash flow increased to $789m in Q2 2022 from $328m in Q2 2021 by Gulf Business August 2, 2022 Abu Dhabi-based Fertiglobe reported that its Q2 2022 revenues increased 105 per cent to $1.471bn, while adjusted EBITDA grew 155 per cent to $770m compared to Q2 2021. The fertiliser company, a joint venture between ADNOC and Dutch chemical producer OCI, reported that its free cash flow increased to $789m in Q2 2022 from $328m in Q2 2021, supporting a first-half dividend of $750m, above previous guidance of at least $700m. Ahmed El-Hoshy, CEO of Fertiglobe said, “Q2 2022 marks another quarter of solid performance, driven by a favourable price backdrop supported by strong in-season demand, tight market balances and elevated gas prices in Europe, as well as higher sales volumes due to a phasing of some shipments from Q1 2022 to this quarter. We are pleased to announce an H1 2022 dividend of $750m, above our previous guidance of at least $700m, driven by strong earnings, healthy cash conversion and our robust capital structure.” “We are also delighted to receive investment grade credit ratings by three rating agencies: S&P (BBB-), Moody’s (Baa3) and Fitch (BBB-), supported by an attractive cash flow profile and a prudent financial policy. We were also pleased to be included in the FTSE Emerging Market Index in June 2022, and, in March 2022, the FTSE ADX 15 Index, representing the 15 largest and most liquid companies on the Abu Dhabi Securities Exchange,” he added. El-Hoshy elaborated, “The outlook for the fundamentals of our nitrogen end markets continues to be underpinned by tight supply, healthy farm economics and low grain stocks globally that incentivise using nitrogen fertilisers. Forward curves imply that natural gas prices in Europe will remain at elevated levels through 2023 and beyond, setting breakeven pricing well above historical average global prices for ammonia and urea.” Fertiglobe’s low leverage, positions the company favourably to selectively pursue value-creative growth opportunities, including organic expansions below replacement cost, capitalising on the emerging demand for low-carbon ammonia as a solution to decarbonise industries that make up around 90 per cent of current global greenhouse gas emissions. Given the company’s free cash generation, they announced cash dividends of $750m for H1 2022, above previous guidance of at least $700m. The dividend will be presented to shareholders for approval and payable in October. Tags Abu Dhabi ADNOC Decarbonisation Fertiglobe Fertilizer 0 Comments Share Tweet Share Share You might also like Etihad Rail: Abu Dhabi announces new passenger train service Etihad Airways to fly A380 on popular Abu Dhabi to New York route from April 2024 Abu Dhabi Airports anticipates over 22 million travellers in 2023 Explainer: What’s the plan for this year’s COP28 climate summit?