Fertiglobe’s Q324 own-produced sales volume fell 7% year on year, driven by planned and unplanned shutdowns, while 9M 2024 own-produced sales volumes were down marginally by 2% year on year to 4.2 million t. Adjusted for the impact of one-off external events, own-produced sales volumes in Q3 2024 and 9M 2024 would have been up 2.1% and 5.0% year on year on a controllable basis, whilst adjusted EBITDA would have been $211 million (+6% year on year) and US$564 million (-21% year on year) in Q324 and 9M 2024, respectively.

Highlights:

  • Fertiglobe reported Q3 2024 revenues and adjusted EBITDA at US$496 million and US$176 million, respectively. Adjusted net profit attributable to shareholders during the quarter was $31 million.
  • Fertiglobe’s 9M 2024 revenues, adjusted EBITDA and adjusted net profit attributable to shareholders stood at $1.5 billion, US$496 million, and $135 million, respectively.
  • Third quarter own-produced volumes stood at 1.4 million t, while 9M 2024 own-produced sales volumes reached 4.2 million t.
  • Following ADNOC’s completed acquisition, Fertiglobe is set to play a key role within ADNOC's ecosystem as the primary vehicle for low-carbon ammonia growth. Fertiglobe will consolidate ADNOC’s existing and future low- carbon ammonia projects at cost and when ready for startup, creating a low-carbon ammonia platform. This includes ADNOC's equity stakes in: 2 low-carbon ammonia projects in the UAE, including the existing 1 million tpy project under construction, where our ownership is set to almost double, and an additional 1 million tpy project in the Pre-FEED stage and the 1 million tpy low-carbon ammonia project in Baytown, Texas (35%-owned by ADNOC) in partnership with ExxonMobil
  • On a consolidated basis, these projects would add ~2.4 million tpy, more than doubling Fertiglobe’s net ammonia capacity of 1.6 million tpy and increasing its total capacity to ~9.0 million tpy of net ammonia and urea combined.
  • Fertiglobe continues to make positive progress on its cost optimisation targets (92% implemented as of Q324 on a run rate basis) and its manufacturing improvement plan (MIP), remaining well on-track to realise US$150 million in collective additional EBITDA by the end of 2025.
  • Fitch upgrades Fertiglobe’s credit rating to ‘BBB’ from ‘BBB-‘, due to its strategic importance to ADNOC, potentially supporting a more favourable funding cost structure going forward.
  • Fertiglobe paid US$2.42 billion in dividends since its IPO in 2021, demonstrating its commitment to returning value to shareholders, supported by a robust balance sheet (1.2x net debt/LTM adjusted EBITDA as at 9M 2024) and healthy free cash generation capacity.
  • The short-term outlook for nitrogen fertilizers remains favourable, driven by tight markets, and record low urea Chinese exports. The longer-term outlook continues to be supported by improving demand from new and existing applications, coupled with limited supply additions.