Fertiglobe today reported Q3 2024 revenues of $496 million, adjusted EBITDA of $176 million, and adjusted net profit of $31 million.
The Company reported 9M 2024 revenues of $1.5 billion, adjusted EBITDA of $496 million, and adjusted net profit of $135 million.
Q3 2024 and 9M 2024 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.
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% 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.
ADNOC’s stakes in the three projects will be transferred to Fertiglobe at cost and when ready for start-up, leading to an immediate contribution to earnings upon transfer, concurrent with any funding requirements, improving project returns and preserving the Company’s balance sheet during the development and construction phase.”
He added that the addition of the US project to Fertiglobe’s portfolio, subject to its expected FID in 2025, represents a major milestone, as it transforms Fertiglobe 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.
Separately, Fertiglobe continues to progress its value enhancement initiatives in line with its goal to improve free cash flow generation across market cycles. Fertiglobe has implemented 92% of its $50 million cost optimisation run-rate savings target as of September 2024 and are on track to meet the full-year target.
In addition, the Manufacturing Improvement Plan (MIP) remains on target to unlock $100 million in incremental annual EBITDA by the end of 2025 compared to 2023, with improvements focused on production and energy efficiency.
“While we have already taken meaningful steps on this journey, the impact on volumes was muted due to external events, including gas and power supply fluctuations, in addition to planned turnarounds executed during the period,” El-Hoshy noted.