ADNOC’s churning out a real winner in Fertiglobe

ADNOC’s churning out a real winner in Fertiglobe

ADNOC has its ways when it comes to creating milestones. After ADNOC Drilling’s groundbreaking IPO, the joint venture between ADNOC and Netherlands’ OCI - Fertiglobe - started trading on ADX in October last. It thus became the first free zone company to be traded on an onshore stock exchange in the UAE. It raised about $795 million during its IPO last year amid strong demand from regional and international investors. Fertiglobe has a market cap of Dh 41.59 billion, and because of higher demand for its products, it reported an increase in profit of more than eightfold in the fourth quarter. As a leading export-oriented nitrogen fertilizer supplier, Fertiglobe has a combined production capacity of 6.5 million tons of urea and merchant ammonia. One of the key components of manufacturing nitrogen fertilizer is natural gas, prices of which are skyrocketing. The long-term contracts of Fertiglobe secure a supply of natural gas at favorable prices because they are indexed to inflation rather than driven by market forces. In January, the company announced a collaborative development agreement with Abu Dhabi's Masdar and France's Engie to build a green hydrogen plant in the UAE to produce ammonia. The three companies will work on