Fertiglobe reports Q3 2024 revenues of $496 million

Fertiglobe, the world’s largest seaborne exporter of urea and ammonia combined and Adnoc’s low-carbon ammonia platform, on Monday reported Q3 2024 revenues of $496 million.

Adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) stood at $176 million, and adjusted net profit of $31 million. The company reported nine-month revenues of $1.5 billion, adjusted Ebitda of $496 million, and adjusted net profit of $135 million.

Q3 2024 and nine-month reported net profits attributable to shareholders were impacted by a $37 million and $48 million provision related to potential changes in Sorfert’s gas pricing set-up (from Nov-2023 to Sep-2024). Notwithstanding potential adjustments, all-in costs in Algeria remain competitive with the rest of the group and globally.

Fertiglobe’s Q3 2024 own-produced sales volume fell seven per cent year on year, driven by planned and unplanned shutdowns, while nine-month own-produced sales volumes were down marginally by 2 per cent year on year to 4.2 million tons. Adjusted for the impact of one-off external events, own-produced sales volumes in Q3 2024 and nine-month would have been up 2.1 per cent and 5.0 per cent year on year on a controllable basis, whilst adjusted Ebitda would have been $211 million (+6 per cent year on year) and $564 million (-21 per cent year on year) in Q3 2024 and nine-month, respectively.

Ahmed El-Hoshy, CEO of Fertiglobe, commented: “Following Adnoc’s recent acquisition of a majority stake in Fertiglobe, we are excited to announce that Adnoc will transfer its 35 per cent equity interest in the Baytown Texas low-carbon ammonia project in the US, along with the two low-carbon ammonia UAE projects, to Fertiglobe, positioning us as the world’s largest low-carbon ammonia producer by 2029. The addition of the US project to Fertiglobe’s portfolio transforms us into a low-carbon ammonia growth platform with global reach and the ability to advantageously serve emerging demand centres across all locations. These milestones underscore how this transaction reinforces Fertiglobe’s low-carbon ammonia growth ambitions, complementing its established leadership in nitrogen products, supported by Adnoc’s full hydrogen value chain and carbon capture and sequestration (CCS) expertise.”

In 2023, Fertiglobe launched an initiative to further optimise its cost structure and reinforce its top-quartile cash cost positioning, targeting $50 million in recurring annualised savings by the end of 2024, of which 92 per cent is implemented as at September 2024, realising $46 million in cost savings. Key focus areas include enhancements to the operating model, improvements in logistical capabilities and optimised operational cost and spend, maximising efficiencies. In addition, Fertiglobe’s MIP remains on track to deliver operational and cost efficiencies, leading to incremental annual Ebitda of at least $100 million by the end of 2025, compared to 2023 levels.