Abu Dhabi’s Fertiglobe reports 84% rise in adjusted net profit for Q3 2022

Fertiglobe has reported an adjusted net profit of $292m for Q3 2022, increasing 84 per cent year-on-year.

The company, which is a strategic partnership between Abu Dhabi-based ADNOC and OCI, reported a 52 per cent year-on-year rise in Q3 2022 revenues to reach $1.32bn, while its adjusted EBITDA grew 64 per cent to total $606m.

Its free cash flow increased to $189m in Q3 2022 from $56m in Q3 2021, recording a 237 per cent year-on-year increase.

For the first nine months of the year, the company’s revenue increased by 87 per cent to reach $3.97bn, with adjusted EBITDA rising 122 per cent to total $2bn and adjusted net profit increasing 203 per cent to equal $1.10bn.

Fertiglobe has delivered yet another strong quarter, with revenues increasing 52% YoY and adjusted net profit up 84%. Backed by our solid order book and favorable cost positioning, we expect H2 2022 dividends to be a minimum of $700 million. pic.twitter.com/mip4BEzoxQ

— Fertiglobe (@fertiglobe) November 3, 2022

The company will pay a minimum of $700m in dividends for H2 2022, equivalent to Dhs0.31 per share, to shareholders in April 2023, official news agency WAM reported.

“We are pleased to report another very solid set of results, driven by a step-up in urea and ammonia prices, supported by tight market balances outweighing the usual seasonal slowdown,” said Ahmed El Hoshy, CEO of Fertiglobe.

“Our competitive position on the global cost curve and free cash flow conversion capacity means that we are well-placed to continue to return capital to shareholders and expect H2 2022 dividends to be a minimum of $700m, bringing the total for 2022 to at least $1.45bn, including the $750mn H1 2022 dividend paid to shareholders in October,” he added.

The company has a net cash position of $644m as of September 30, 2022, compared to net debt of $487m as at December 31, 2021.

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