Abu Dhabi’s Fertiglobe FY 2022 profit up 75% despite weaker nitrogen prices

Abu Dhabi’s Fertiglobe FY 2022 profit up 75% despite weaker nitrogen prices

Abu Dhabi-based Fertiglobe, the largest nitrogen fertilizer producer in the Middle East and North Africa (MENA), posted a full-year 2022 net profit of $1.3 billion, up 75% compared with a year earlier, despite weaker nitrogen prices.

The fertilizer company, a joint venture between state energy firm ADNOC and Dutch chemical producer OCI, said demand outlook for the new few months is improving amidst a China recovery.

In a statement on Tuesday, it said that full-year (FY) revenue rose 52% to $5 billion. However, fourth-quarter 2022 revenues declined 11% year-on-year to $1.1 billion, while adjusted EBITDA was 27% lower at $472 million, driven by lower urea prices and plant turnarounds in the UAE and Egypt.

CEO Ahmed El-Hoshy said Fertiglobe turnarounds across its plants in 2022 in the UAE and Egypt were complete, and that there are no further turnarounds planned at these facilities in 2023. "We have a good order book going into the first quarter of 2023...," he added.

Fertiblobe has a net cash position of $287 million as of 31 December 2022 compared with a net debt of $487 million as of 31 December 2021.

The company reiterated its commitment to its dividend guidance and announced dividends of $700 million for the second