Abu Dhabi’s Fertiglobe revenue hit by lower sales

Revenues at fertiliser producer Fertiglobe slipped 16 percent to $1.05 billion in the first half of 2024 from $1.24 billion a year earlier due to lower sales.

Net profit attributable to owners over the same period fell 39 percent year on year to $131 million.

Abu Dhabi-listed Fertiglobe is the largest nitrogen fertiliser producer in the Middle East and North Africa region, and an early mover in sustainable ammonia.

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It’s second quarter’s top line declined 10 percent year on year to $496 million, with net profit attributable to owners over the period dropping 82 percent to $14.3 million.

Sales volumes fell by 2 percent year on year due to recent gas supply disruptions in Egypt. However they rose 1 percent to 2.8 million tonnes in the first half, supported by higher production in Egypt and Algeria.

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Despite the increase in natural gas costs and the steady level of grain prices quarter on quarter, nitrogen prices have been impacted by delayed demand, cautious buying behaviour and reduced urea imports from India in the second quarter, it said.

Fertiglobe proceeded with its cost optimisation programme, achieving 84 percent of the $50 million savings target by June 2024.

Its board will present an H1 2024 dividend proposal in September 2024, which will be payable in October. Total dividend payout for 2023 was $475 million.

The company said it expected the short-term outlook for ammonia and urea to be favourable, driven by tight markets.

The medium to long-term outlook will continue to be supported by improving demand from new and existing applications and limited supply additions, it said.

Headquartered in Abu Dhabi, Fertiglobe employs more than 2,700 people and was formed as a strategic partnership between OCI Global, a Dutch producer and distributor of nitrogen, methanol and hydrogen products, and the Abu Dhabi National Oil Company.