Latest news with #Fertiglobe
Yahoo
06-06-2025
- Business
- Yahoo
Berenberg downgrades OCI, says divestment cycle nearing end
-- Berenberg downgraded OCI to Hold from Buy, saying the company's years-long strategic reshaping is close to completion and leaves limited upside for shareholders. The Dutch chemicals firm has been spinning off major assets, including its fertilizer, methanol, and ammonia businesses, returning roughly $4.4 billion to investors so far. Following shareholder approval at its May annual meeting, OCI plans an additional $1 billion payout once the sale of its methanol unit to Methanex (NASDAQ:MEOH) closes, expected in the first half of 2025. Berenberg expects that after completing the handover of its Texas Clean ammonia project to Woodside (OTC:WOPEY) Energy in late 2025, OCI's majority shareholder, the Sawiris family, could launch a tender offer for the remaining shares at a modest premium. 'The company is approaching a liquidation moment, with OCI's main shareholders willing to delist the shares,'' Berenberg wrote, adding that once the Methanol deal is finalised, management may also pursue a sale of its remaining European nitrogen assets. However, the brokerage noted that finding a buyer could be challenging as key players like Yara and Grupa Azoty are scaling back EU operations. OCI's residual assets would consist of the nitrogen unit, which includes a 1.2 million tonne per annum ammonia terminal in Rotterdam and 1.6 million tonne ammonium nitrate capacity, and a 14.5% equity stake in Methanex. Berenberg sees limited catalysts for further value creation, cutting its price target to €8.70 to reflect the May 7 distribution. It values the company based on a sum-of-the-parts analysis, factoring in expected transaction and restructuring costs of $300 million and estimating a partial recovery from contingent payments tied to the Fertiglobe deal. The bank expects US regulatory approval of the Methanol sale, though with some remedies to address market concentration concerns. Related articles Berenberg downgrades OCI, says divestment cycle nearing end Bernstein downgrades CrowdStrike on valuation, sees better upside in Palo Alto Shopify, Citi named signature picks at Wells Fargo
See - Sada Elbalad
04-06-2025
- Business
- See - Sada Elbalad
Scatec's Egypt Green Hydrogen Project signed 20-year offtake agreement with Fertiglobe, based on H2Global award
SeeNews Scatec ASA's Egypt Green Hydrogen project, in partnership with Fertiglobe, Orascom Construction, The Sovereign Fund of Egypt and the Egyptian Electricity Transmission Company, reaches a key milestone, after Fertiglobe secured a green ammonia offtake agreement with Hintco in Germany, through the first ever H2Global auction. Based on the award, Fertiglobe and Egypt Green Hydrogen have entered into a 20-year ammonia offtake agreement. The agreement was signed at the Egypt-EU Investment Conference in Egypt on 29 June 2024. 'The H2Global award represents a key milestone for the Egypt Green Hydrogen project in Ain Sokhna, Egypt. This demonstrates the competitiveness of green hydrogen and ammonia production in Egypt, driven by its abundant renewable energy resources and strategic geographical location. We are grateful for the Egyptian government´s leading role in supporting this pioneering project and we look forward to continuing to work with the relevant stakeholders to establish Egypt as a regional green hydrogen hub. With Fertiglobe securing an offtake agreement for the ammonia, Egypt Green Hydrogen will accelerate the project's development and advance it towards financial close,' says Scatec CEO Terje Pilskog. In 2021, Scatec and partners agreed to develop, build, own and operate a 100 MW electrolyser facility to produce renewable hydrogen to be used as feedstock for the production of renewable ammonia at Fertiglobe's existing ammonia plant in Ain Sokhna, Egypt. The project will be powered by about 270 MW of solar and wind power capacity and deliver approximately 13,000 tonnes of renewable hydrogen and up to 74,000 tonnes of renewable ammonia annually. Scatec is the lead developer and majority sponsor of Egypt Green Hydrogen with an ownership share of 52% and will provide EPC services in collaboration with Orascom Construction. Scatec will further provide O&M and Asset Management services for the project alongside key technology providers and project partners. Next important milestones for the project are to select the electrolyser supplier and complete the project financing process with the European Bank for Reconstruction and Development (EBRD), European Investment Bank (EIB), Germany's development finance institution and KfW subsidiary DEG, British International Investment (BII), and US International Development Finance Corporation (DFC), that are providing competitive financing to support the first green hydrogen and ammonia project in Egypt. The partners expect to reach financial close in the first half of 2025. Ahmed El-Hoshy, Chief Executive Officer of Fertiglobe, said: 'This award marks a significant milestone for Fertiglobe in advancing sustainable ammonia production and a further critical step towards FID of Egypt Green Hydrogen, expected in H1 2025. Our selection as the winning bidder in H2Global's pilot auction underscores our leadership in supplying low-carbon products and our commitment to shaping a more sustainable future, and I appreciate the work of our incredible team to make this award possible. We are leveraging this vital program which makes our investment in sustainable ammonia economically viable, supporting critical decarbonization technology, while maintaining our disciplined growth strategy.' Gelsomina Vigliotti, Vice President of the European Investment Bank, said: 'Green hydrogen has a key role to play in the energy transition and in providing carbon-neutral solutions for industry. The first offtake agreement for hydrogen produced in Egypt, agreed at the Egypt-EU Investment Conference, represents a key step for future large-scale investment in the sector. The European Investment Bank looks forward to strengthening our cooperation with Scatec, Egyptian and international partners to mobilise investment for large-scale renewable hydrogen production in Egypt.' Nandita Parshad, Managing Director of the EBRD's Sustainable Infrastructure Group, said: 'The signing of the offtake agreement is a key milestone for the Egypt Green Hydrogen project with our long standing clients Scatec and Orascom Construction, as well as the Sovereign Fund of Egypt and Fertiglobe. The EBRD is proud to support this pioneering project which will produce 13,000 tons of renewable hydrogen annually and demonstrate the commercial viability of renewable Hydrogen in Egypt.' Monika Beck, Managing Director at DEG, commented: 'It is part of DEG's mission as an impact and climate financier to promote green hydrogen as a driver of green transformation. We are delighted to contribute to mobilizing investment in this milestone project in Egypt together with our esteemed client Scatec and our development finance partner institutions. We are convinced that it is essential to join forces to drive forward the green transformation, and the private sector plays a key role in this.' Iain Macaulay, Director and Head of Project Finance in Africa at BII, said: 'Egypt has the potential to be a global leader in renewable energy generation and green hydrogen production. I am delighted that BII has been able to provide project finance to back this landmark project, that will support a green and sustainable future for the country and showcase the importance of new technologies in supporting a just transition for the whole African continent.' The project is located in Egypt's Suez Canal Economic Zone (SCZONE), which seeks to become a major hub for green hydrogen industries. Waleid Gamal Eldien, Chairman of SCZONE, said: 'The Egypt-EU Investment Conference 2024, marked a vital milestone on Egypt's pathway to become a global green ammonia hub, as we celebrated the signing of a flagship offtake agreement between Fertiglobe and Egypt Green Hydrogen, the first green hydrogen plant in Africa, located at the SCZONE. As first agreement under H2Global auction, the offtake not only demonstrates the EU support to the emerging green hydrogen industry and the realization of Egypt's potential, but additionally emphasizes Egypt's determination to reach its vision, and showcase its comparative advantage stemming from its abundant renewables resources, industrial land, and its unique geographic location with ease of access to the world. The agreement is a testimony of Egypt's leadership and support in mobilizing its resources to attract foreign direct investments in green projects through the facilitation provided by its stakeholders.' The H2Global Foundation was established in 2021 to accelerate the emergence of markets for clean hydrogen and other zero-and low-emission technologies worldwide. It does so through market-based instruments, such as the H2Global mechanism, implemented by its subsidiary Hintco. 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Zawya
23-05-2025
- Business
- Zawya
Fertiglobe eyes future growth with diverse project portfolio across UAE, globally
ABU DHABI - Fertiglobe, an ADNOC subsidiary based in the UAE, is currently evaluating several strategic projects before making final investment decisions. These include a collaborative project with Exxon in the United States and additional prospective ventures in Abu Dhabi. Fertiglobe CEO Ahmad Al-Hoshy informed the Emirates News Agency (WAM) during the 'Make it in the Emirates' that the company is advancing its project in Ruwais Industrial City, Abu Dhabi, to produce one million tonnes of low-carbon ammonia. Fertiglobe's current annual production of ammonia and urea stands at 6.6 million tonnes, with plans to increase this to 7.6 million tonnes by 2027 upon the new project's completion and operational launch. Al-Hoshy also stated that Fertiglobe anticipates a final investment decision in 2025 for a renewable ammonia project in Egypt. In the meantime, Al-Hoshy noted the company's recent acquisition of assets in Australia, which, he said, will facilitate product distribution in key markets. He added, "We continue to monitor global markets in search of new opportunities that allow us to create added value and expand our footprint." Discussing the company's recent financial performance, Al-Hoshy highlighted a robust first quarter in 2025, with EBITDA reaching $261 million, a 45% YoY increase, and free cash flow at $213 million, marking a 37% YoY growth.
Khaleej Times
21-05-2025
- Business
- Khaleej Times
Fertiglobe earnings to get a boost from Adnoc funding support
Fertiglobe, the world's largest seaborne exporter of urea and ammonia combined, expects funding support from Adnoc to boost the company's earnings per share, its CEO said. The company's interest bill will reduce by around $10 million via direct and indirect financing support by Adnoc, adding approximately six per cent to its 2024 earnings per share, driven by refinancing, debt repricing and the benefits of the credit rating upgrades the company received following Adnoc's majority stake acquisition. 'Combined, between the fixed and the interest cost savings, we expect an approximate 13-16 per cent after-tax earnings per share accretion by the end of 2025, in addition to incremental contributions from the announced strategic pillars,' Ahmed El-Hoshy, CEO, Fertiglobe, told Khaleej Times in an interview. A strong operational performance as well as favourable market conditions for urea and the strategic shipment deferrals from Q4 2024 to Q1 2025 drove Fertiglobe's performance for the first quarter of this year, capitalising on higher prices, as it targets earnings before interest, taxes, depreciation and amortisation (Ebitda) by 2030, El-Hoshy said. Fertiglobe had a very strong start to the year, with revenues growing 26 per cent and adjusted Ebitda up 45 per cent over the same period last year. Our adjusted attributable profits also increased significantly on a normalised basis to $73 million, up 306 per cent after adjusting for a one-off foreign currency revaluation benefit in Q1 of last year. 'Additionally, supported by the company's ongoing manufacturing improvement plan (MIP), our asset utilisation and energy efficiency levels reached record highs across most plants in Q1 2025, a key reason behind the increase of 7 per cent year-on-year in our own-produced sales volumes,' El-Hoshy said. Fertiglobe's 'Grow 2030 Strategy' aims to transform the company into a $1 billion+ Ebitda global integrated downstream nitrogen product champion by 2030 via four strategic pillars: operational excellence, customer proximity, nitrogen product expansion and disciplined low-carbon ammonia growth. 'While these pillars are expected to collectively add $340-420 million to Ebitda till 2030 (at unchanged prices), several of the initiatives behind those pillars will start to reflect on our earnings this year,' El-Hoshy said. Adnoc has provided its full support to integrate and optimise $15-21 million of fixed costs by the end of 2025, leading to a 7-10 per cent earnings-per-share accretion by the end of year. 'In addition, we continue to make progress on our MIP, with gains expected to also continue reflecting on our run rate volumes and earnings. In addition, our recent acquisition of Wengfu Australia, as part of our downstream integration strategy, is expected to be accretive starting this year,' El-Hoshy said. Fertiglobe has identified four strategic pillars, for growth. 'Pillar one is achieving operational excellence working towards top quartile performance via manufacturing and cost excellence which should unlock $165-175 million of incremental Ebitda, most of it to be achieved by the end of 2027. The second pillar is maximising netbacks and increasing customer proximity, with our Wengfu Australia acquisition being a case in point of our opportunistic and focused approach towards growth, whether organic or inorganic. Separately, we will be looking to expand our nitrogen product portfolio to capture more value and convert ammonia into higher value products, similar to an Automotive Grade Urea (AGU) agreement we signed with DF Group of Spain. And finally, the fourth pillar revolves around low-carbon ammonia and pursuing a disciplined value-led approach capitalising on our existing advantages and the synergies with our majority shareholder's ecosystem,' El-Hoshy said. The company recently acquired Wengfu Australia's distribution assets.'Wengfu is a leading fertiliser distributor with significant downstream presence in Australia. For us, Australia is a highly attractive market and one of our largest, offering high value and growth in the urea sector. The acquisition also accelerates our expansion across the Asia-Pacific region, which is a key growth market,' El-Hoshy said. Fertiglobe has been supplying urea to Wengfu for over five years. 'This acquisition secures our position in a strategic premium market and brings us closer to end customers. It aligns with our new strategy of selectively expanding downstream in our key markets. This acquisition can drive additional urea volume growth in Australia and will provide access to a broader customer base, unlock supply chain efficiencies, and support the introduction of enhanced-efficiency and sustainable fertilisers,' El-Hoshy said.
Zawya
15-05-2025
- Business
- Zawya
Fertiglobe's profits exceed $115mln in Q1-25; revenues hike 26%
Abu Dhabi: Fertiglobe achieved net profits of $115.30 million in the first quarter (Q1) of 2025, an annual drop from $154.40 million. Revenues hiked by 26% to $694.90 million as of 31 March 2025 from $551.90 million in Q1-24, according to the financial results. Basic and diluted earnings per share (EPS) hit $0.009 in Q1-25, versus $0.014 a year earlier. Ahmed El Hoshy, CEO of Fertiglobe, commented: "We delivered a 7% increase in our own-produced sales volumes vs. Q1-24, and 31% vs. Q4-24.' 'This was driven by the strategic shift of shipments from Q4 to capitalize on improving market conditions, and improved plant operating rates, reflecting successful execution on Phase 1 of the Manufacturing Improvement Plan (MIP) focused on enhancing energy and production efficiency,' El Hoshy added. He noted: 'With ADNOC's strategic support, Fertiglobe has entered the next phase of its growth under the 'Grow 2030 Strategy', targeting to become a $1 billion EBITDA` global integrated downstream nitrogen product champion by 2030 via four strategic pillars.' Last year, the net profit attributable to fell to $159.90 million from $348.90 million in 2023.
