Fertiglobe's revenue grows 14% to $566m in the second quarter

Khaleej Times

a day ago

Fertiglobe, the world's largest seaborne exporter of urea and ammonia combined and the largest nitrogen fertiliser producer in the Middle East and North Africa region and Adnoc's low carbon ammonia platform, on Monday announced a revenue of $566 million, reflecting a 14 per cent year-on-year increase in the second quarter.
Adjusted Ebitda grew 26 per cent to $176 million, with adjusted net profit attributable to shareholders stood at $12 million, representing a 68 per cent increase compared to Q2 2024. In the first half of 2025, Fertiglobe reported revenue of $1.26 billion, reflecting a 20 per cent increase year-on-year increase. Adjusted Ebitda for the period stood at $437 million, up 36 per cent year-on-year, while adjusted net profit attributable to shareholders stood at $85 million, representing an 18 per cent decline compared to the prior year, driven by a one-off forex gain in H1 2024.
Ahmed El-Hoshy, CEO of Fertiglobe, commented: 'This quarter demonstrated Fertiglobe's growing operational resilience, with an adjusted Ebitda increase of 26 per cent Y-o-Y. Fertiglobe remains strategically placed to deliver robust performance and maintain operational continuity amid challenging conditions. We capitalised on the downtime in Egypt to perform critical maintenance activities, successfully extending the turnaround cycle, with maintenance capex expected towards the lower end of our previous guidance at $145 million. Notably, excluding external factors and turnarounds, our own-produced sales volumes for the second quarter of 2025 would have been up 4 per cent Y-o-Y, while H1 2025 own-produced sales volumes would have increased 7 per cent Y-o-Y. With the continued support of Adnoc, we remain confident in our strategic path to become a globally integrated nitrogen champion and creating long-term value for shareholders, while continuing to innovate and differentiate our solutions that support global food security and enable the energy transition.'
The company proposed H1 2025 dividends of at least $100 million (4.4 fils per share), subject to board approval in September with payment in October. Including the $31 million worth of shares bought back in Q2 2025, Fertiglobe provides one of the highest total return metrics in the industry at the combined $131 million cash returns to shareholders for H1 2025. Additionally, Fertiglobe continues to execute on its announced 2.5 per cent share buyback programme, aimed at opportunistically capitalising on the stock's attractive valuation. As of 1 August 2025, Fertiglobe repurchased 55 million shares, representing 0.66 per cent of total outstanding shares.
While Fertiglobe remains dedicated to advancing its low-carbon project portfolio, the Company recognises that the global low-carbon ammonia market remains in the early stages of development, with regulatory frameworks and demand signals continuing to evolve. As such, and in line with Fertiglobe's disciplined approach to capital deployment across its low-carbon ammonia project pipeline, Fertiglobe has taken the decision to rephase Project Rabdan1F, a 1 mtpa low-carbon ammonia project and associated auto-thermal reformer. This decision reflects the Company's prudent investment strategy and commitment to timing capital allocation effectively and is consistent with the broader objectives of the Grow 2030 Strategy, particularly its focus on disciplined low-carbon growth.
In addition, Fertiglobe expects its recently announced proposed acquisition of the distribution assets of Wengfu Australia to play a key role in strengthening its downstream presence in high-netback markets, in line with its strategic focus on customer proximity. Wengfu Australia's distribution assets are also projected to enhance supply chain resilience and unlock long-term distribution synergies. The transaction is subject to regulatory approvals and is anticipated to close in H2 2025.
As of 30 June 2025, Fertiglobe reported a net debt position of $909 million, implying a consolidated net debt to LTM adjusted Ebitda ratio of 1.0x. This strong financial position enables the Company to effectively balance growth investments and shareholder distributions, supported by robust free cash flow generation and a solid balance sheet.
Fertiglobe is also set to realise $10 million of annual run rate interest savings in 2025, following credit rating upgrades by S&P, Fitch, and Moody's and driven by Adnoc's acquisition of a majority stake in Fertiglobe. These savings are further underpinned by the refinancing of our $300 million loan through the internal Adnoc bank and the recent repricing of a $1.1 billion term loan, supporting lower financing costs and contributing to earnings accretion in the quarter